The Minister of Finance, Budget and National Planning, Zainab Ahmed, has met the leadership of the National Assembly over the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper.
The MTEF/FSP had been scheduled by the finance ministry to be submitted later in July.
This was contained in a statement, on Thursday, signed by the Special Assistant on Press to President of the Senate, Ezrel Tabiowo.
The Minister briefed the principal officers of the Senate and House of Representatives, led by the Senate President, Ahmad Lawan, and the Speaker, Femi Gbajabiamila.
During the meeting, the minister disclosed that President Muhammadu Buhari had given directives for the Finance Ministry to expedite action on next year’s budget estimates to enable him present the 2021 budget proposal to the National Assembly by the end of September 2020.
According to Ahmed, in keeping strictly with the new January to December budget cycle, the President would on Friday sign into law, the revised N10.8trillion budget for the year 2020, which was passed by the legislators in June.
Ahmed said, “This for us is a journey towards ensuring that the progress that we have made as a collective, to return the fiscal year to January – December, is maintained for the 2021 budget as well.
“The President has directed that we must deliver the budget to the National Assembly by the end of September.”
Ahmed also presented an update on the 2020 budget implementation between January and May 2020.
According to her, the Federal Government’s retained revenue was N1.48trillion, an amount representing 56 per cent of FG’s projected target.
Details of her report revealed that out of the total revenue, oil revenues accounted for N701.6billion, while non-oil tax revenues stood at N439.32bn.
She further noted that Companies Income Tax and Value Added Tax collections amounted to N213.24billion and N68.09billion; and Customs collection, N158billion, respectively.
She said other revenues amounted to N339.51billion, of which independent revenues were N80.22billion. Recoveries and Stamp Duty collected during the period had yet to be booked in the fiscal accounts.
The minister noted that within the same period between January to May, N1.25trillion was expended for debt service, while N1.32trillion was spent on Personnel cost, including Pensions.
Ahmed said as at the end of May 2020, only N253.33billion had been released for capital expenditure.
She added that the underlying assumptions driving the macro-economic parameters and targets of the 2021 – 2023 Medium Term Expenditure Framework, was “revised in line with the emergent realities.”
Details of the assumptions revealed that the Oil Price Benchmark for the 2021 fiscal year was pegged at $35; and $40 for 2022 and 2023, respectively.
She said oil production (mbpd) was placed at 1.86 for 2021, 2.09 for 2022, and 2.38 for the 2022 fiscal year; while the Exchange Rate remained at N360 to $1.
Ahmed said, “Although Nigeria’s total production capacity is 2.5 million barrels per day, current crude production is about 1.4 million barrels per day – in compliance with the Organisation of the Petroleum Exporting Countries’ production quota – and an additional 300,000 barrels per day of condensates, totaling about 1.7mbpd.”
According to her, while the World Bank forecasts that crude oil prices will rise gradually from an average of $42 per barrel in 2021 to $44.5 per barrel in 2022 and $47pb in 2023, it is also expected that Brent crude oil prices may average $41 per barrel during the second half of 2020 and $50pb during 2021.
She added that it could climb as high as $53pb by the end of next year.
“The nominal Gross Domestic Product is expected to increase from N130.83trillion in 2020 to N132.12trillion in 2021 and then up to N138,415.8 billion in 2023,” Ahmed said.
Meanwhile, the Senate President said the meeting would help facilitate the speedy presentation of the 2021 budget appropriation before the Senate as said by the President.
