2020 Budget Proposal: Key Takeaways


Thursday, October 10, 2019 10:00 AM / United Capital / Header Image Credit: Channels TV


Recently, the Nigerian President, Muhammadu Buhari, presented both the 2020 Budget estimates to the joint session of the National Assembly.


According to the report, Nigeria plans to spend N10.3tn in 2020 while revenue is expected to come in at N8.1tn -17.0% higher than the proposed estimates for 2019, respectively. Notably, oil revenue was revised downward to N2.6tn as crude oil price and production were reviewed lower to $57.0/b and 2.18mbpd (2019: $60.0/b and 2.3mbpd).


Meanwhile, when compared to 2019 projections, non-oil and revenue estimates spiked 30.6% and 95.7% to N1.8tn and N3.7tn, respectively. The non-oil revenue growth is to be financed by a proposed increase of VAT rate from the current 5.0% to 7.5%.


Disaggregating the component of the gross expenditure plan, c. 71.0% earmarked for recurrent expenditures (recurrent non-debt expenditure: 47.2%; and debt servicing: 23.7%). Built into the recurrent non-debt expenditure is the new minimum wage as well as the proposed expenditure to improve remuneration and welfare of the Police and Military. Meanwhile, allocation to capital projects (N2.5tn) constitutes 23.8% of the proposed budget-short of the 30.0% target in the Economic Recovery and Growth Plan (ERGP).


While we observe a few concerns in the budget numbers, we are of the view that early presentation of the budget by the President is positive for the overall economy as it could see Nigeria return to its normal financial cycle (Jan - Dec). Additionally, this should give businesses and organizations enough time to plan and make good inputs in their 2020 budgets.

Download Full PDF Report Here - Budget 2020 Breakdown - Zainab Shamsuna Ahmed

Proshare Nigeria Pvt. Ltd.



Related News

1.       President Buhari's 2020 Budget Speech

2.      2020 Federal Government of Nigeria Budget Proposal - Highlights

3.      Nigeria: Agelong Budget Cycle Conundrum

4.      Budget 2019: Pulling a Gun We Know We Can't Shoot

5.      President Muhammadu Buhari Signs 2019 Appropriation Bill Into Law

6.      Senate Passes 2019 Budget; Increases It By N86bn

7.      Proposed Budget 2019 Analysis - FG Proposes To Spend N8.83trn in 2019

8.     Ambode Presents N852.316bn Year 2019 Budget To House Of Assembly

9.      The Nigerian Budget 2019 And Issues Arising - Sanda

10.  Human Rights Activist Drags Governor Obiano to Court Over 2019 Appropriation Bill

11.   Subpar Budget Revenues From Oil

12.  Beyond Politics - Putting Government Under Pressure For Immediate Performance

13.  Mohammed Bin Rashid Approves DIFC's New Expansion Plan, Launches 50 Year Charter

14.  2019 Budgets: Update on States in Nigeria (1)

15.   My Takeaways From Nigeria's Budget 2019 - Atiku

16.  Breakdown Of The 2019 FGN Budget Proposal

17.   2019 Budget to Place Nigeria on Path of Inclusive and Sustainable Economic Growth - Buhari

18.  2019 Budget Speech Delivered By His Excellency President Muhammadu Buhari

19.  President Buhari to Present 2019 Budget to NASS on December 19, 2018

20. Sub-par Capital Spending By The FGN

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News