The Nigerian senate has pegged the benchmark price of crude oil in the 2021 budget at $40 per barrel while the foreign exchange rate is pegged at $1 to N379.
Senate also put the new foreign and domestic borrowings by the federal government at N4.28 trillion, following a consideration of the harmonized conference report of the joint Senate and House of Representatives committee on finance on Thursday.
These followed the passage of the 2021-2023 Medium Term Expenditure Framework, (MTEF) AND Fiscal Strategy Paper, 9FSP) projections upon which the 2021 budget would be based.
In his presentation, Chairman of the Senate Committee on Finance, Senator Olamilekan Adeola explained that the joint committee of both chambers after due deliberations recommend that “daily crude oil production be pegged at 1.86 mb pd; benchmark oil price at US$40 per barrel; exchange rate at N379 to $ 1 USD; Gross Domestic Growth, GDP rate at 3%; inflation growth rate at 11.95%; and federal government retained revenue at N7.99 Trillion.”
He added that the total federal government proposed expenditure was pegged at N13.58 trillion and fiscal deficit at N5.60 trillion.
Again, the Senate approved N4.28 trillion as new borrowings (including foreign and domestic borrowing); statutory transfer at N484.4 billion; debit service N3.12 trillion; sinking fund N220 billion; pensions, gratuities and retirees benefits N520.6 billion, total FGN expenditure N13.58 trillion; and total recurrent (non-debt) N5.66 trillion.
Senate as well put the personnel cost for Ministries, Departments and Agencies of government at N3.05 trillion; capital expenditure (exclusive of transfers) at N3.58 trillion, special interventions (recurrent) N350 billion; and special intervention (capital) N20 billion.