Buhari signs 2020 revised N10.8 trillion budget into law

Buhari signs 2020 revised N10.8 trillion budget into law
President Muhammadu Buhari

Nigerian President Muhammadu Buhari has signed the 2020 revised budget of 10.8 trillion into law.

The National Assembly in June passed a revised budget for 2020 as Nigeria handles the new coronavirus pandemic and a sharp fall in the cost of oil – Nigeria’s greatest wellspring of income from export.

The budget, which was proposed by the national assembly looked to diminish Nigeria’s 2020 budget from N10.6 trillion to N10.5 trillion, was, in any case, increased by the officials.

The budget was increased to N10.8 billion, higher than the underlying affirmed budget in December 2019.

The review of the budget was required due to the effect of the COVID-19 which has antagonistically influenced the oil cost and, by augmentation, the income projections of the government.

From the revised budget, N422 billion was earmarked for statutory transfers, while N4.9 trillion was for recurrent expenditure.

Capital expenditure will take N2.4 trillion and N2.9 trillion, about a quarter of the budget, will be used to service debt.

N500 billion was earmarked as intervention funds for the fight against COVID-19, while the health sector got N186 billion allocation.

The budget assumes oil production at 1.9 million barrels per day (bpd). Oil prices have recovered from a 20-year low of just under $16 per barrel hit in March

Nonetheless, Nigeria has likewise consented to constrain its oil yield to 1.412 million bpd as a feature of an arrangement with the Organization of the Petroleum Exporting Countries and different makers. That understanding was stretched out through the finish of July.