Thursday, February 04, 2021 / 3:06 PM / by Ben Akabueze / Header Image Credit: Ben Akabueze/Budget Office
Being a Presentation by Ben Akabueze, DG Budget Office, at Lagos Business School (LBS) Breakfast Club on Wednesday, 3rd
- A public budget is critical to
ensure a well-functioning society and a competitive economy.
- Through the budget, government
provides public goods/services and an environment conducive for businesses to
- Government policies and
programmes are implemented through the budget.
- Timely approval of the government
budget is critical for effective planning by the private sector in the economy;
hence the FGN's efforts to sustain the return to a predictable January -
December Budget cycle.
- The government's budget is a
moral document; you can tell who and what a country values by examining its
Budget is designed to:
a) Strengthen the macroeconomic
b) Accelerate the economic recovery
c) Invest in critical
infrastructure, human capital development and enable institutions, especially
in key job-creating sectors;
d) Incentivize private sector
investment essential to complement plans, policies and programmes; and
e) Enhance social investment
programmes to further deepen their impact on the most vulnerable Nigerians.
considerations during 2021 Budget preparation:
- Global/Domestic socio-economic
- Government's development
priorities, as stated in the Economic Sustainability Plan.
- Macroeconomic Framework -
- Fiscal projections - oil and
non-oil revenues, allocations.
- Sustainability of deficit and
- Impact on people and businesses.
presentation provides opportunity to:
- deepen understanding of the FGN
- inform the business community of
the opportunities for business in the Budget; and
- highlight the critical roles of
the business community in achieving the objectives of the budget.
of the FGN's budget is crucial for the private sector to tap into available
opportunities and contribute towards achieving the budget's objectives.
Global and Domestic Economic Environment
- The global economic environment is
expected to improve in spite of the renewed wave and new variants of Covid-19.
International Monetary Fund (IMF) forecasts 5.5% global economic growth in 2021
after 3.5% decline in 2020.
non-pharmaceutical Covid-19 containment measures, vaccine availability and
improved therapies are expected to enhance global economic activity.
- The Nigerian economy is currently
in recession following two successive quarters of negative GDP growth (Q2 2020:
-6.1%; Q3 2020: -3.62%).
IMF's latest projection is for the Nigerian economy to grow by 1.5% in 2021;
- NBS' projected growth rate, and basis for the 2021 budget, is 3.0%.
- Poverty rate is still high; NBS' latest estimate is that 40.1% of the population (82.9 million people) are poor.
- High poverty worsened by rising
- NBS reported an increase in
unemployment rate from the 23.1% recorded in Q3 2018 to 27.1% in Q2 2020.
- Total number of unemployed people
increased from 20.9 million in Q3 2018 to 21.8 million in Q2 2020.
- Low skills limit employment
opportunities in the formal economy.
- The 2021 budget provides for
Social Investment Programmes and several youth empowerment schemes in response
to the poverty and unemployment issues.
- COVID-19 pandemic has worsened
the poverty and unemployment situation in Nigeria. As a general rule, pandemics
worsen the problem of inequality.
- Inflation rose from 12.13% in
January 2020 to 15.75% in December 2020; Driven largely by food inflation
(itself fueled by structural issues, insecurity and border closure).
- The 2021 Budget of Economic
Recovery and Resilience encapsulates government's plan to accelerate our
economic recovery process, promote social inclusion and strengthen resilience
of the economy.
- Implementation of the 2021 Budget
from January 1 will significantly contribute towards achieving fiscal
sustainability and government macro-fiscal and sectoral objectives.
- We project the economy to exit
recession by Q2 or Q3 2021.
About the Author
Akabueze, Director-General, Budget Office of the Federation, Nigeria Ben has
over 23 years' experience in Accounting, Consulting and Banking, and about 12
years in public financial management in a professional career which started at
PriceWaterhouse (Chartered Accountants), and spanned Citibank Nigeria, United
Bank for Africa and NAL Bank Plc, where he rose to the position of Managing
Director/Chief Executive (2000-2005). He served as Lagos State Commissioner for
Economic Planning & Budget from January 2007 till May 2015, having first
been appointed by Governor Tinubu and then re-appointed for two terms by
brief stint at running his own firm, BIA Consulting Ltd, a Financial and
Strategic Management Consulting practice, with a strong focus on public financial
management, he was appointed Special Adviser (Planning) to the President of
Nigeria effective February 15, 2016, and on June 9, 2016 President Buhari
appointed him the Director-General Budget Office of the Federation.
Akabueze is very passionate about societal transformation and actively
participates in programmes designed to bring the desired change in his country.
In this respect, he serves on the Boards of the Apostles in the Marketplace,
Society for National Transformation, etc. He also pastors the Redeemed
Christian Church of God - The King's Court Parish, with a congregation
consisting mainly of professionals and businesspeople. Ben is the recipient of
several academic, professional and community service awards. He loves to play
squash and to swim.
Download Full Presentation Here
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