To demonstrate its determination to diversify the economy, and attendant revenue streams, the Federal Government hopes to generate about 56 per cent of its 2020 projected revenue from the non-oil sources.
This target is probably being buoyed by recent successes from agriculture, and some Ministries, Departments, and Agencies (MDAs) like the Nigerian Customs Service (NCS), Federal Inland Revenue Services (FIRS), Joint Admission and Matriculation Board (JAMB), Nigeria Postal Services (NIPOST), which were not making much returns, but now surpassing their set targets.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, revealed this plan in Abuja, yesterday while giving a breakdown of the 2020 budget.
Ahmed stated that the aggregate revenue available to fund the 2020 budget is projected at N8.42 trillion (3.2 per cent) or N263.94 billion more than the Executive proposal and 10.9 per cent more than 2019 budget of N7.59 trillion
“In aggregate, 44 per cent of projected revenues is to come from oil-related sources while 56 percent is to be earned from the non -oil sources,” she stated.
The minister, however, said that the overall budget deficit is N2.175 trillion for the year 2020 representing 1.52 per cent of the Gross Domestic Product (GDP), which is within the threshold stipulated in the Fiscal Responsibility Act (FRA) 2007.
She added: “‘Budget deficit is to be financed mainly by borrowings from domestic sources put at N744.99 billion, foreign sources put at N850 billion and multi-lateral/bi-lateral loan draw-downs put at N328.13 billion respectively.”
According to her, with the timely preparation and passage of the budget, it will restore the normal cycle, and would facilitate quick implementation commencing from January 1, 2020.
She stated that the N10.594 trillion budget made up of N4.493 trillion recurrent and N2.465 trillion capital expenditure has a N8.42 trillion revenue target broken down as N2.64 trillion oil revenue, N1.81 trillion non-oil, and N3.97 trillion from other sources.
According to her, the projected N8.42 trillion revenue is 3.2 per cent or N263.94 billion over the Executive proposal, and 10.9 per cent more than the 2019 budget of N7.59 trillion).
She explained that to promote fiscal transparency, accountability, and comprehensiveness, the budget of 10 major government-owned enterprises (GOEs) had been integrated into the budget with effect from 2020.
“The fiscal plan which also has a deficit of N2.175 trillion will be financed from new domestic borrowings of N744.99 billion and N850 billion foreign borrowings with privatization proceeds expected to account for N252 billion,” she stated.’
Speaking on some of the projects listed for the fiscal year, the minister revealed that N210 billion is being provisioned for some road projects across the six-geopolitical zones.
She stressed that the budget also has N560 billion provisioned for statutory transfer, N2.453 trillion for debt service, and N273 billion for the debt sinking fund.
Ahmed disclosed that agriculture and rural development has over N9 billion provision, for the promotion and development of value chains in more than 30 different commodities stressing, ‘’these include N1.6 billion for national grazing reserve development,
N3 billion for veterinary and pest control services, N7.64 billion for rural roads and water sanitation, and N1.02 billion support for women and youth in agribusiness, among others.”
