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President Buhari Presents N13 Trillion 2021 Budget To National Assembly

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President Mohammadu Buhari on Thursday, presented the 2021 budget estimates at the joint session of the National Assembly today, at the NASS Complex, Abuja.

The 2021 budget estimate presented was N13.08 trillion:

Key capital spending allocations in the 2021 Budget include:

a.          Power: N198 billion (inclusive of N150 billion for the Power Sector Recovery Plan);

b.          Works and Housing: N404 billion;

c.           Transportation: N256 billion;

d.          Defence: N121 billion;

e.          Agriculture and Rural Development: N110 billion;

f.            Water Resources: N153 billion;

g.          Industry, Trade and Investment: N51 billion;

h.          Education: N127 billion;

i.             Universal Basic Education Commission: N70 billion;

j.             Health: N132 billion;

k.           Zonal Intervention Projects: N100 billion; and

l.             Niger Delta Development Commission: N64 billion.

The sum of N484.49 billion provided for Statutory Transfers in the 2021 Budget represents an increase of N56.46 billion (or 13 percent) over the revised 2020 provision. The Statutory Transfer provisions are:

a.          Niger Delta Development Commission   –       N63.51 billion;

b.          North East Development Commission            –       N29.70 billion;

c.           National Judicial Council                         –       N110.00 billion;

d.          Universal Basic Education Commission –       N70.05 billion;

e.          Independent National Electoral Commission  –       N40.00 billion;

f.            National Assembly                                  –       N128.00 billion;

g.          Public Complaints Commission                      –       N5.20 billion;

h.          Human Rights Commission                     –       N3.00 billion; and

i.             Basic Health Care Provision Fund          –       N35.03 billion.

In compliance with the Fiscal Responsibility Act 2007, all beneficiaries of Statutory Transfers will be required to provide the Budget Office of the Federation with periodic reports on the allocation and expenditure of funds for inclusion in the quarterly Budget Implementation Report.

Recurrent Expenditure

In our efforts to enhance national security and human capital development, a major part of the 2021 recurrent cost estimate is allocated to paying salaries and overheads in MDAs providing these critical public services. These include:

a.          N227.02 billion for the Ministry of Interior;

b.          N441.39 billion for the Ministry of Police Affairs;

c.           N545.10 billion for the Ministry of Education;

d.          N840.56 billion for Ministry of Defence; and

e.          N380.21 billion for the Ministry of Health.

Personnel Costs

Personnel cost is still our largest single item of expenditure. In the 7 months to 31st July 2020, it accounted for 34 percent of total Federal Government spending and is projected at 33 percent of 2021 expenditure.

To check the incidence of payments to non-existent personnel and unauthorised allowances, only Federal staff that have been captured on the Integrated Personnel Payroll Information System (‘IPPIS’) platform will receive salaries.

All agencies have been directed to ensure that they obtain all necessary approvals before embarking on any fresh recruitment. Any breach of these directives will be severely sanctioned.

Debt Service

We remain committed to meeting our debt service obligations. Hence, we have provisioned N3.12 trillion for this in 2021, representing an increase of N445.57 billion from N2.68 trillion in 2020. A total of N2.183 trillion has been set aside to service domestic debts while N940.89 billion has been provided for foreign debt service. N220 billionis provided for transfers to the Sinking Fund to pay off maturing bonds issued to local contractors and creditors.

Overhead Costs

Total overhead costs of MDAs and Government Owned Enterprises are projected to rise to N625.50 billion in 2021, mainly due to the inclusion of the overheads of an additional 50 Government-Owned Enterprises. Overhead provisions have also been made for newly created agencies. To keep a tab on running costs, MDAs must adhere to extant expenditure controls.

Capital Expenditure

An aggregate sum of N3.85 trillion is expected to be available for capital projects in 2021, as summarised below:

a.          N1.80 trillion for MDAs’ capital expenditure;

b.          N745 billion for Capital Supplementation;

c.           N355 billion for Grants and Aid-funded projects;

d.          N20 billion for the Family Homes Fund;

e.          N25 billion for the Nigeria Youth Investment fund;

f.            N336 billion for 60 Government-Owned Enterprises;

g.          N247 billion for capital component of Statutory Transfers; and

h.          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 ongoing projects as possible, rather than the commencement of new ones. We have also made efforts to ensure equity in the distribution of projects and programmes in the proposed budget. I will be providing the National Assembly with a list of some of the most critical projects which we must work collectively to ensure they receive adequate funding. Until projects reach completion, they do not deliver the dividends of democracy that Nigerians rightly deserve.

g.          N247 billion for capital component of Statutory Transfers; and

h.          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 ongoing projects as possible, rather than the commencement of new ones. We have also made efforts to ensure equity in the distribution of projects and programmes in the proposed budget. I will be providing the National Assembly with a list of some of the most critical projects which we must work collectively to ensure they receive adequate funding. Until projects reach completion, they do not deliver the dividends of democracy that Nigerians rightly deserve.

The President stated that N420 Billion has been earmarked for the Social Investment Programmes, while 20 Billion has been earmarked for the Social Housing Programmes.

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