President Muhammadu Buhari announced a budget of N10.33 trillion for the 2020 fiscal year. While presenting the budget, the president described it as a fiscal consolidation plan to improve the macroeconomic environment in Nigeria: investing in critical infrastructure, human capital growth, and promoting institutions, especially in key job-creating sectors.
President Buhari said the 2020 budget was focused on the current VAT rate, adding that the increased revenue will be used to fund education, health and infrastructure.
The budget increase further represents the current national minimum wage.
The president declared the following contributions to the relevant ministries in order of assignment of departments.
Works and Housing – N262 billion
Transportation – N123 billion
UBEC – N112 billion
Defence – N100 billion
Agriculture – N83 billion
Water Resources – N82 billion
Education – N48 billion
Health – N46 billion
North East Dev Commission – N38 billion
SIPs – N30 billion
FCT – N28 billion
Niger Delta – N24 billion
Read excerpts of his speech below:
I am delighted to present the 2020 Federal Budget Proposals to this Joint Session of the National Assembly, being my first budget presentation to this 9th National Assembly.
Before presenting the Budget, let me thank all of you Distinguished and Honourable Members of the National Assembly, for your avowed commitment to cooperate with the Executive to accelerate the pace of our socio-economic development and enhance the welfare of our people.
I will also once again thank all Nigerians, who have demonstrated confidence in our ability to deliver on our socio-economic development agenda, by re-electing this Administration with a mandate to Continue the Change. We remain resolutely committed to the actualization of our vision of a bright and prosperous future for all Nigerians. During this address, I will present highlights of our budget proposals for the next fiscal year. The Honourable Minister of Finance, Budget and National Planning will provide full details of these proposals, subsequently.
I will be re-forwarding the Bill to this Assembly very shortly and therefore urge you to pass it. We estimate that this effort can generate at least 500 million US dollars additional revenue for the Federal Government in 2020, and over one billion dollars from 2021.
Whilst the Budget is our principal fiscal tool to achieve these socio-economic development targets, we remain committed to prudently planning for our future economic prosperity. In this regard, I have directed the reconstituted Ministry of Finance, Budget and National Planning to commence preparations towards the development of successor medium – and long-term economic development plans, particularly as the Nigeria Vision 20-2020 and the ERGP expire next year.
