- Senate Adds N727m to 2020 Budget, Now N10.729trn
The Nigerian National Assembly added N727 million to the proposed 2020 budget on Thursday.
The Federal Government had proposed N10.002 trillion budget for 2020 but the Senate raised the number N727 million to N10.729 trillion.
Also, the red chamber approved all the 16 recommendations by the National Assembly Joint Committee on Finance and National Planning, on the 2020-2022 Medium Term Expenditure Framework and Fiscal Strategy Paper.
In the same vein, the 2020 oil benchmark was increased by $2 from $55 per barrel to $57. Also, the 2020 revenue target for the Nigeria Customs Service was increased from N942.6 billion to N1.5 trillion.
That was likely due to Hammed Ali’s disclosure before the Senate on Wednesday that revenue generation has surged above N5 billion per day since the Federal Government closed Nigeria’s borders.
Both the foreign exchange rate of N305 to a dollar and oil production of 2.18 million barrels per day were maintained.
Below is the approved recommendations:
“The Committee recommends the adoption of $57/barrel as the crude oil benchmark price for the fiscal year 2020.
“The Committee recommends the adoption of N1.5 trillion as the amount for New Borrowing as a result of reduction of N200 billion which was sourced from the increase of revenue target of the Nigeria Customs Service.
“The revenue target of Nigeria Customs Service (NCS) of N942.6 billion for 2020 should be increased to N1.5 trillion, as a result of the performance of NSC in the last 9 months with 3 months still outstanding.
“The NCS revenue as of September stood at N1 trillion against the budget figure of N969. 8 billion for the year 2019. The Joint Committee commends the NCS for exceeding the targeted revenue despite the global economic challenges and closure of the Nigerian borders.
“The sum of N557.4 billion from the revenue increment of NCS be used to reduce borrowing by N200 billion and increase capital expenditure thereby decreasing the size of the budget deficit from N1.7 trillion to N1.5 trillion and also increase the total capital available to MDA by N357 billion, from N1.01 trillion to N1.367 trillion”