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Nigeria’s Revenue Drops By N1trillion In 5 Months

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The Budget Office on Monday said Nigerian government recorded a revenue deficit of 38 percent, translating to N1 trillion, in its projected revenue for the first five months of 2020.

In its 2021 Budget Call Circular released in Abuja, government stated the guidelines that must be observed by Ministries, Departments and Agencies (MDAs) towards the preparation of the 2021 budget proposal.

The document noted that all ministers/chief executives and accounting officers responsible for budget preparation were enjoined to read the budget call meticulously.

The circular encompassed certain areas of the 2020 budget performance, stating that the Nigerian government’s actual revenue as of 30th May was N1.62 trillion, representing 62 per cent of the N2.62 trillion pro-rata revised budget.

‘The shortfall of 38 per cent is attributable to the underperformance of both oil and non-oil revenue sources,’ the circular said.

According to the document, the 2021 budget estimates preparation for MDAs should factor in the 2023 medium term policies/strategies contained in the 2021 Expenditure Framework and Fiscal Strategy Paper, which serves as government’s pre-budget statement.

‘Further to this, the Federal Government’s annual budget shall be prepared using the Zero-Based Budgeting approach and in line with the government’s policy thrust, as articulated in the Nigeria Economic Sustainability Plan, as well as other relevant circulars,’ it said.

In accordance with the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper, the aggregate government revenue available for budget for the 2021 fiscal year was estimated at N7.49 trillion while the aggregate expenditure was put at N12.66 trillion.

‘This aggregate expenditure is made up of statutory transfers of N481.41 billion, debt service of N3.12 billion, Sinking Fund of N220 billion, and recurrent (non-debt) expenditure of N5.75 trillion.’

It estimated capital expenditure (excluding capital in statutory transfers) at N3.09 trillion.

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