The Federal Government has proposed N9.7trn for the year 2020 budget and projected 2.93% GDP growth for the year 2020.
Minister of Finance, Budget and National Planning Mrs. Zainab Ahmed disclosed this while presenting the draft 2020-2022 Medium Term Expenditure Framework/Fiscal Strategy Paper recently in Abuja.
Mrs. Zainab Ahmed said that oil production volume is projected to be an average of 2.18 million barrels per day (mbpd) for 2020, lower than the projected oil production volume of 2.3mbpd for 2019. She also revealed that a lower benchmark oil price of $55/b (against $60/b for 2019) is assumed considering the expected oil glut in 2020, as well as the need to cushion against unexpected price shock.
According to her, “Our real GDP growth projections are rates of 2.93%, 3.35% and 3.85% for 2020, 2021 and 2022, respectively. Mrs. Zainab continued by saying “that though this falls short of the ERGP projection, the trajectory remains the right direction. Personnel cost (inclusive of pension costs) at over N3.0 trillion has continued to rise. The FGN is, however, taking steps to contain rising personnel costs, and the October 2019 deadline by Mr. President for all MDA’s to Implement IPPIS remains sacrosanct”.
Speaking also at the event, the Minister of State, Budget and National Planning, Prince Clem Agba said that the key thrust of the 2020- 2022 Medium Term Expenditure Framework (MTEF) is aimed at sustaining growth and diversifying the economy.
He said “ I believe we all have a part to play in this, in fact, the private sector is the engine of economic growth in any developed country, and we all vigorously work towards how the MTEF and successor budgets can enable this effectively thereby providing sustainable jobs in line with the mandate of Mr. President. So, we would be working with the private sector, we see you as our partners and together we would work on the next successor plan”.
He further revealed that the Economic Recovery Growth Plan (ERGP) which currently anchors the MTEF expires next year and at the appropriate time, the Ministry will require broad deliberations on how to envision the medium and long term plans taking into cognizance the nation’s rising youth population on our social-economic status.
Prince Agba equally emphasized on this administration’s commitment to returning the Nigerian budget to the January -December cycle, saying it is key to giving Nigerians a functional plan within the calendar year.
The Minister reiterated Mr. President’s commitment to lifting one hundred million Nigerians out of poverty in the next ten years, stressing that fiscal resources will be deployed to actualizing this.
13th September 2019