president Muhammadu Buhari laying the 2021 appropriation bill before the joint sitting of the National Assembly ,in Abuja yesterday
The National Assembly has received the 2021 appropriation budget of N 13.3 trillion naira from President Muhammadu Buhari at a joint session of both chambers on Wednesday.
The 2021 budget themed ‘Economic Recovery and Resilience’ has a target of promoting economic diversification and social inclusion. The roadmap for a post coronavirus economy, aimed at accelerating the economic recovery process.
According to President Buhari, the Nigerian economy is currently facing serious challenges but he has worked hard to ensure the early submission of the 2021 to 2023 MTEF and the 2021 budget with hopes that the budget will be given a speedy consideration.
“Government is also determined to deliver on key policies and programmes and is also accelerating construction of 337 rural roads across communities to enhance local markets. I am also accelerating the construction of 337 rural roads that are key to agriculture”.
The President also hopes to complete construction of the second Niger bridge before the end of his tenure In 2023.
“Second Niger bridge is about 46 percent complete and we hope to complete it before the end of my tenure in 2023, “.
“Crude oil projected at $40bpd, exchange rate at N379 to $1, GDP at three per cent and inflation rate at 11.95 per cent.”
“An aggregate sum of N3.85 trillion is expected to be available for capital
projects in 2021, N1.80 trillion for MDAs’ capital expenditure. N745 billion for Capital Supplementation, N355 billion for Grants and Aid-funded projects. N20 billion for the Family Homes Fund; N25 billion for the Nigeria Youth Investment Fund. N336 billion for 60 Government Owned Enterprises; N247 billion for capital component of Statutory Transfers; and N710 billion for projects funded by Multi-lateral and Bi-lateral loans”.
“The 2021 capital budget is N1.15 trillion higher than the 2020 provision of N2.69
trillion. At 29 percent of aggregate expenditure, the provision moves closer to
this Administration’s policy target of 30 percent. Capital expenditure in 2021 remains focused on the completion of as many on-going projects as possible, rather than the commencement of new ones”.
Highlights of the 2021 Capital Projects include Key capital spending allocations in the 2021 Budget include: Power: N198 billion (inclusive of N150 billion for the Power Sector Recovery Plan); Works and Housing: N404 billion; Transportation: N256 billion; Defense: N121 billion; Agriculture and Rural Development: N110 billion; Water Resources: N153 billion; Industry, Trade and Investment: N51 billion; Education: N127 billion; Universal Basic Education Commission: N70 billion; Health: N132 billion; Zonal intervention Projects: N100 billion; and Niger Delta Development Commission: N64billion.
A further breakdown of the 2021 budget as proposed by President Buhari shows that the National Assembly gets N128 billion, Ministry of health N380.21b,
N3.8 trillion has been allocated to all MDAs for execution of capital projects.
The education ministry’s budget has been increased by 65 percent to improve the quality of education while N65 billion has been retained in the 2021 budget for the Presidential Amnesty Programme, and N420 billion provided to sustain the Social Investment Programme.
President Buhari said all federal staff must be on the IPPIS platform before getting their salaries as the ongoing IPPIS verification exercise has helped in eliminating ghost workers. He also warned MDAs to seek approval before conducting recruitments, failure to do so according to the president would be met with sanctions.
President Buhari said he has directed all ministers and heads of agencies to be personally available for budget defense organized by NASS.
He adds that the capital budget is focused more on completing ongoing projects than execution of new ones.
In the entourage of President Buhari were Vice President Yemi Osinbajo, the SGF, Boss Mustapha, Chief of Staff to the President, Ibrahim Gambari and Minister of Finance, Zainab Ahmed, amongst others.