Overview

The document is a public presentation by Mrs. (Dr.) Zainab Shamsuna Ahmed, the Honorable Minister of Finance, Budget & National Planning of Nigeria, on the 2021 Federal Government Budget proposal. Presented on October 13, 2020, it outlines the budget's focus on 'Economic Recovery and Resilience' amid the COVID-19 pandemic. The presentation covers the introduction and background, highlighting that the initial 2020 budget was revised due to the pandemic, and the 2021 budget aims to return to a January-December cycle. It reviews 2020 fiscal outcomes, noting Nigeria's GDP contraction of -6.1% in Q2 2020 and a likely second recession in four years. Global and domestic developments are discussed, including disruptions to crude oil demand and supply chains, and adjustments to the official exchange rate by the Central Bank of Nigeria. Key macroeconomic assumptions for 2021 include an oil price benchmark of $40 per barrel, oil production of 1.86 million barrels per day, exchange rate of N379 per US dollar, GDP growth of 3%, and inflation at 11.95%. The budget proposal totals N13.08 trillion, with projected revenues of N7.86 trillion and a deficit of N5.22 trillion, financed mainly by borrowing. Capital expenditure is set at N3.56 trillion, focusing on infrastructure, health, education, and agriculture. Selected projects include the Second Niger Bridge, Lagos-Ibadan Expressway, Mambilla Hydropower Project, and various railway and road projects. The document concludes by emphasizing the need for resilience and economic recovery.

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