President Muhammadu Buhari has presented the 2021 Appropriation Bill to a Joint Session of the National Assembly.
The Federal Executive Council (FEC) had approved a sum of N13.09 trillion for the 2021 fiscal year.
The 2021 budget is themed ‘Economic Recovery and Resilience’ – with the aim of promoting economic diversification and social inclusion.
In his speech, while presenting the 2021 Appropriation Bill before the legislative arm of government on Thursday, Buhari stated that revenue generation to fund annual budgets has been the greatest challenge being faced by his administration.
“Revenue generation remains our biggest challenge,” he noted.
Buhari disclosed that supervising ministers had been ordered to ensure strict monitoring of revenue-generating agencies under their supervision.
The President also admitted that the Federal Government is spending more on recurrent expenditure, a situation he blamed on non-existent personnel (ghost workers) and unauthorised allowances introduced by Ministries, Departments, and Agencies (MDAs).
He, therefore, ordered heads of the MDAs to get approval before any recruitment.
In his opening remarks, President of the Senate, Ahmad Lawan, had said the National Assembly is ready to pass the 2021 Appropriation Bill before the end of 2020.
Last week, Minister of Finance, Zainab Ahmed, while speaking with journalists, said the budget is based on an exchange rate benchmark of N379/$ and crude oil production of 1.86 million barrels per day (including 400,000 barrels of condensate) at $40 per barrel.
Ahmed said capital expenditure in the budget is estimated at N2.083 trillion which represents 29 percent of the total budget.
The budget targets three percent GDP growth and 11.95 percent inflation rate.