The 2021 budget is titled “Budget of Economic Recovery and Resilience” set at N13.58 trillion for the fiscal year. The capital budget is set at N1.15 trillion higher than the 2020 provision of N2.69 trillion.
“The capital expenditure in 2021 is said to be solely for the completion of many ongoing projects as possible, rather than the commencement of new ones.”
Here are key capital spending allocations in the 2021 Budget include:
A. Power: N198 billion
B. Works and Housing: N404 billion
C. Transportation: N256 billion
D. Defence: N121 billion
E. Agriculture and Rural Development: N110 billion
F. Water Resources: N153 billion
G. Industry, Trade and Investment: N51 billion
H. Education: N127 billion
I. Universal Basic Education Commission: N70 billion
J. Health: N132 billion
K. Zonal Intervention Projects: N100 billion
L. Niger Delta Development Commission: N64 billion.
Other key allocations
Social Investment Programme: N420 billion
Family Homes Fund: N20 billion
Survival Fund Programme: N75 billion (To support and protect businesses from potential vulnerabilities)
The Central Bank of Nigeria is reducing the interest rate on its intervention facilities from 9% to 5% with a 1-year moratorium till 31st March 2021, to provide concessional lending of:
A. N100 billion to households and small businesses;
B. N100 billion to the healthcare and pharmaceutical industry;
C. N1 trillion to large agricultural and manufacturing businesses.
Federal Government made cleat that Revenue generation remains a challenge in the face of falling oil prices and economic contraction, especially as a result of the COVID-19 pandemic.
Introduction of Tax Expenditure Statement indicates the government’s increased focus on taxation and fiscal policies.