To reflect these harsh economic realities occasioned by the coronavirus pandemic, the federal has adjusted the 2020 budget, slashing the figures by N317.5 billion.
it’ll be recalled that the National Assembly had in December 2019, passed a budget of N10.5 trillion.
But during a document sighted by Vanguard yesterday, the federal reduced the 2020 estimate to N10.276 trillion, leading to a difference of N317.5 billion. the event also affected other components of the budget.
Consequently, the petroleum sales formerly benchmarked at $57 per barrel has been slashed to $30 per barrel, while boring volume has been reduced from 2.17 million barrel to 1.70 million barrel.
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However, the rate of exchange which was hitherto placed at N305 has increased to N360 to a dollar.
Federal Government’s share of oil revenue, the share of NLNG dividends, the share of minerals & mining, non-oil among others were reduced from N7.866 trillion to N4.534 trillion.
The redistributable Federal Government’s share of the Federation Account (52.68%) was reduced from N4.516 trillion to N1.648 trillion; deduction was reduced from N214.291 billion to N78.216 billion; Net federal share of Federation Account (48.5%) was reduced from N4.157 trillion to N1.517 trillion, while internet ecological and derivation (after 10% transfer to NEDC) was reduced from N77.145 billion to N28.158 billion.
The document also showed a discount within the federal share useful Added Tax (15%) from N313.472 billion to N300.732 billion; FCT 1% reduced from N20.898 billion to N20.683 billion while the Net federal share of VAT pool account (14%) was reduced from N292.573 billion to N280.683 billion.
The new budget was believed to possess been discussed by the Minister of Finance, Mrs. Zainab Ahmed during a closed-door meeting with the leadership of the National Assembly yesterday.
it had been learned that the small print is going to be officially sent to the National Assembly for consideration and approval when it resumes plenary next week.
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The minister of finance also informed the National Assembly leadership that the Ministry was set to present the revised 2020 budget also because of the Medium Term Expenditure Framework (MTEF)/ Fiscal Strategy Paper (FSP).
The meeting also featured the Minister of State for Petroleum Resources, Timipre Sylva, the Group Director , GMD of the Nigerian National Petroleum Corporation, NNPC, Mele Kyari, among other officialdom.