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Buhari signs 2020 budget with 2019 capex implementation below 30 per cent
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The 2020 budget, which is now set for implementation from January 1, 2020, virtually sealed any hope of further implementation of the 2019 budget’s capital expenditure.
Nigerian President Muhammadu Buhari, today, signed the 2020 Appropriation Bill into law.
The Senate had on December 5th, 2019, passed the 2020 Appropriation Bill. President Buhari presented the 2020 budget proposal to a joint session of the National Assembly (NASS) in Abuja on October 8th, with the hope of its early passage to align the next fiscal year to January – December.
The 2020 budget of N10.59 trillion passed by the Senate is N264 billion higher than the N10.33 trillion presented by President Buhari. Chairman of the Senate Committee on Appropriation, Senator Barau Jibrin – who presented the Committee's report at plenary – said the increase was because of the need for interventions in critical areas such as security, infrastructure, mines and steel development, social development, health, among others.
The Senate retained Nigeria’s daily oil production estimate for 2020 at 2.18 million barrels per day (bpd) as proposed by Buhari. The lawmakers also maintained crude oil benchmark price of $57 per barrel, as against $60 per barrel for the 2019 budget.
Since 2017, the Buhari administration has tried to realign the budget cycle. This objective has now been realised with the signing of the 2020 budget into law in December 2019. The 2019 budget was signed into law in May of the same year.
The 2020 budget, which is now set for implementation from January 1, 2020, virtually sealed any hope of further implementation of the 2019 budget’s capital expenditure. President Buhari in October disclosed the first release of funding under the total capital expenditure of N2.09 trillion in the 2019 budget, when he said he had announced N600 billion to be released in the next three months under the capex. This leaves the implementation of the 2019 capital expenditure at maximum 28.7% of the total.
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