Additional N505bn as Senate passes 2021 budget of N13.082 Trillion

The Senate has passed the 2021 Appropriation Bill totalling N13.082,420,568,233 trillion.

The budget was increased by N505 billion.

The passage followed the recommendation by the Senate Committee on Appropriation.

The Appropriation committee chairman, Senator Jibrin Barau, presented the report of the committee to the Senate Monday.

The budget estimate was presented to the joint session of the upper and lower legislative chambers by President Muhammadu Buhari on October 8 and had been undergoing legislative scrutiny with the aim of passing it into law before the end of the year.

While presenting his report, Barau noted that the COVID-19 pandemic affected all sectors of the economy.

The chairman said the executive arm of government could present a supplementary budget owing to the fact that the country’s crude oil price is on the rise.

“That the impact of COVID-19 has affected all facets of life. There is a remarkable increase of Nigeria’s oil price,” the Kano senator said.

“In view of increasing oil prices, the executive may wish to submit a supplementary bill to lift the country out of recession.”

The budget is based on an exchange rate benchmark of N379/$ and crude oil production of 1.86 million barrels per day (including 400,000 barrels of condensate) at $40 per barrel.

Capital expenditure in the budget is estimated at N2.083 trillion which represents 29 per cent of the total budget.

It targets three per cent GDP growth and 11.95 per cent inflation rate.

However, with the increase of the total budget size, the capital expenditure is now N4.125 trillion.

The sum of N3.324 trillion was earmarked for debt service and the sum of N5.641 trillion was voted for recurrent (non-debt expenditure).