Nigeria’s cabinet proposed on Wednesday a 3% economic growth target and an 11.95% inflation target for its 2021 budget, a presidency aide said on his official Twitter account.
The cabinet also plans to target a $40 per barrel oil benchmark and 1.86 million barrels per day of crude production in the budget, the aide said.
Badly hit by the coronavirus pandemic, Nigeria’s economy contracted 6.1% in the second quarter of 2020 and now faces possible recession in the third, with the government expecting the economy to shrink by as much as 8.9% this year.
Low oil prices have also taken their toll on the African continent’s top producer, which relies on crude sales for 90% of foreign exchange earnings.
Meanwhile The Nigerian cabinet signed off on planned expenditure in 2021 of 13.08 trillion naira ($34.37 billion) with a deficit of 4.48 trillion naira, and set its expected exchange rate for the naira currency at 379 to the U.S. dollar, according to the aide.
The budget requires legislative and presidential approval before coming into effect, a process that can take months.
Meanwhile The Ministry of Finance, Budget, and National Planning has put the expenditure ceiling of the 2021 pre-bilateral proposal for the Presidency at N10 billion against the N15.3 billion of the revised 2020 budget passed by the National Assembly.
This was contained in a statement issued by Attah Esa, Deputy Director (Information) State House, Abuja.
According to the statement, Federal Government agencies in the Presidency, at the weekend held consultations for the 2021 budget.
The preparation of the 2021 budget estimates takes into consideration the policies and strategies contained in the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), which is the Federal Government pre-budget statement.”
The latest budget circular issued by the Ministry of Finance, Budget and National Planning put the expenditure ceiling of the 2021 pre-bilateral proposal for the Presidency at N10 billion compared with N15.3 billion of the revised 2020 budget passed by the National Assembly.”