Juliana Taiwo-Obalonye, Abuja
President Muhammadu Buhari in order to keep strictly with the January – December budget cycle, on Friday sign into law, the revised N10.8 trillion budget for the year 2020 passed by the National Assembly in June.
He said the budget had to revised because of the effect of coronavirus on the nation’s economy.
He said the ministries, department and agencies will be given 50 percent of their capital allocation by the end of the month.
He also charged all Ministers to ensure that their Ministries, Departments and Agencies intensify capital project delivery efforts and fully cooperate with the Ministry of Finance, Budget and National Planning to achieve the laudable objectives of the Budget.
The signing took place inside the Council Chambers of the State House, Abuja.
The Vice-President, Yemi Osinbajo, Secretary to the Government of the Federation, Boss Mustapha Chief of Staff to the President, Ibrahim Gambari witnessed the signing.
Senate President, Ahmed Lawan, Speaker Femi Gbajabiamila and other principal officers witnessed the signing.
The Ministers Finance, Budget and National Planning, Zainab Ahmed; Minister of State Finance, Clement Agba, Governor of Central Bank of Nigeria, Godwin Emiefile and Director General Budget, Ben Akabueze.
At11:03 Senator Babajide Omoworare, Senior Special Assistant (SSA) to President on National Assembly Matters (Senate) and Hon. Hon Umar El Yakub, on National Assembly Matters (House of Representatives) presented the budget to the President, while the Osinbajo, Lawan, and Gbajamilia joined him to witness the signing the budget at exactly 11:06am
The president submitted the initial 2020 budget to the national assembly in October 2019 and signed it into law in December 2019.
After the pandemic hit, the president submitted a revised version of the budget to the national assembly in May.
The original budget size when it was signed into law in December 2019 was N10.594 trillion.
The initial adjustments made to the budget resulted in a N318 billion cut bringing the budget size to N10.276 trillion.
However, the federal executive council at its May 13 meeting increased the total sum of the revised budget to N10.523 trillion, a difference of just about N71.5 billion when compared to the approved budget.
On June 11, the senate increased the total size of the revised budget by N5 billion from N10.805 trillion to N10.810 trillion.
According to the Finance Minister, changes made to the budget include a revision of the daily crude oil production benchmark to 1.94 million from 2.18 million barrels per day.
The exchange rate has also been adjusted from the initial N305/$.
Speaking at the signing, Buhari,
“You will recall that I signed the 2020 Appropriation Act into law on Tuesday, 17th December 2019. However, it became necessary to revise the Appropriation Act 2020 in response to recent developments, in particular, the COVID-19 Pandemic. Crude oil prices in the world market declined sharply from a high of $72.20 per barrel in January 2020 to below $20 per barrel in April 2020, and have since remained around $40 per barrel.
“Nigeria’s crude oil production quota has been reduced as part of the efforts of the Organization of Petroleum Exporting Countries (OPEC) to strengthen the oil market. Global trade has generally been disrupted as almost all economies were locked down for protracted periods in the wake of the COVID-19 Pandemic.
“All these developments are plunging the global economy into recession, and Nigeria has not escaped the impact of this. In effect, the assumptions underlying the 2020 Appropriation Act are no longer sustainable.
“It is therefore imperative to adjust our expected revenues, considering the widespread disruptions in domestic and international economic activities due to the COVID-19 Pandemic, and the containment measures taken in response thereto.
“Understandably too, we needed to reallocate resources in the Appropriation (Repeal and Amendment) Act, 2020 to ensure effective implementation of required health and emergency measures, as well as to mitigate the negative socio-economic effects of the COVID-19 Pandemic.
“The 2020 Amended Budget, which I have just signed into law today, underscores our Administration’s firm commitment to effectively contain the spread of COVID-19 and protect the lives and livelihood of our people. With these budget amendments, as well as our recently launched N2.3 trillion Stimulus Programme, we are well-positioned to safeguard the economy.
“Considering recent budget implementation challenges, I have directed that efforts be made to ensure effective implementation of the Appropriation (Repeal and Amendment) Act, 2020 in order to realise its laudable objectives.
“All Ministers are to ensure that their Ministries, Departments and Agencies intensify capital project delivery efforts and fully cooperate with the Ministry of Finance, Budget and National Planning to achieve the laudable objectives of the Budget.
“We have, nevertheless, made some progress in the implementation of the Appropriation Act 2020. As at 31st May 2020, the sum of N253.33 billion have been released for the implementation of capital projects.
“The Federal Ministry of Finance, Budget and National Planning is in the process of effecting budgetary releases that will ensure that all Ministries, Departments and Agencies receive at least 50 per cent of their amended capital budgets by the end of this month.
“The Appropriation (Repeal and Amendment) Act, 2020, that I have just signed into law, provides for aggregate expenditures of N10.81 trillion, which is an increase of N216 billion over the level of expenditure initially proposed in the 2020 Appropriation Act.”
President Buhari also thanked Nigerians for their understanding and unflinching support, especially during these difficult times.