Buhari signs N8.9trn 2019 budget into law
Nigerian President Muhammadu Buhari signed an N8.9 trillion ($29 billion) budget for 2019 into law on Monday.
Approved by lawmakers last month, the budget is based on estimated oil production of 2.3 million barrels a day, an assumed crude price of $60 per barrel and an exchange rate of 305 naira to the dollar.
Nigeria’s economy, the largest in Africa, grew by 1.93% last year, its fastest pace since a recession two years earlier which was caused by the impact of low oil prices. The continent’s top oil producer relies on crude sales for about 90 percent of its foreign exchange.
The planned deficit of 1.9 trillion naira represents 1.37% of GDP.
Buhari is due to be inaugurated for a second four-year term on Wednesday. He won re-election in February after pledging to revive the economy, improve security and tackle corruption.
Last month the upper house of parliament increased the budget by 80 billion naira to 8.9 trillion naira, up from the 8.83 trillion naira presented by Buhari to lawmakers last year.
Highlights of the 2019 budget as approved by the National Assembly include the capital expenditure of N2.09tn, recurrent expenditure of N4.05tn, statutory transfers of N502bn, fiscal deficit of N1.9tn, and special intervention of N500bn.
The lawmakers also approved debt service of N2.25tn. Out of the figure, N1.7tn was approved for domestic debts, while the sum of N433bn was provided for foreign debts.
Similarly, the sum of N110bn was approved for a sinking fund to retire maturing debt obligations.