9 things to know about proposed revised 2020 budget

…FG slashes UBE, Healthcare Fund in revised 2020 budget

Nigeria’s Appropriation Bill for the year 2020 has been revised as a result of a few factors including a drop in global oil price, economic recession resulting from coronavirus pandemic lockdown. Some sectors of the economy are adversely affected. Here are 10 things you should know about the revised 2020 budget.

1. SLASHED OIL BENCHMARK: There is a 65 per cent drop in oil revenue as the Federal Government proposes $25 per barrel as the new oil benchmark price. The revised oil revenue target is N924 billion as against N2.64 trillion earlier approved by the National Assembly.

2. SLASHED NON-OIL REVENUE TARGET: There is a revised proposal of Non-Oil Revenue target as N1.62 trillion as against N1.81 trillion in the Appropriation Act. This is a 10 per cent decrease.

3. SLASHED CUSTOMS REVENUE TARGET: Customs is one of the Nigerian government’s cash cows. Its revenue is reduced by 27 per cent in the revised 2020 budget. The Customs revenue is targeted at N450 billion from the initial target of N618 billion.

Also, read 3 things you should know about reopening Nigerian airports by June 21

4. BASIC EDUCATION, HEALTH SACRIFICED FOR LEGISLATIVE BUDGET: Although the National Assembly (the Senate and the House of Representatives) and National Judicial Commission had 10 per cent reduction, the Universal Basic Education Commission (UBEC) and Basic Healthcare Fund (BHCF) are reduced to 54% and 43% respectively to fund the N27 billion renovation of the National Assembly complex. National Assembly is, therefore, expected to receive N115 billion, whereas UBEC and BHCF are projected to get N51 billion and N25 billion as their respective funds.

5. SECURITY BUDGET UNTOUCHED: The funds allotted for the security sector comprising Interior, National Security Adviser and Defence are largely untouched.

6. UNTOUCHED SOCIAL SECTOR BUDGET: The social sector does not experience a reduction in their capital allocations as Health receives 25 per cent, Education gets 20 per cent and Women Affairs has 38 per cent.

7. LESS MONEY FOR CORRUPTION FIGHT: The anti-corruption agencies also had their budget slashed in their capital allocations whereby Independent Corrupt Practices Commission and Code of Conduct Tribunal had their budgets reduced by 58 per cent and 88 cent respectively.

8. REDUCTION IN CAPITAL BUDGETS: Ministry of Works and Housing have their budget cut from N315 billion to N256 billion, Agriculture from N124 billion to N79 billion, Science and Technology from N62 billion to N42 billion, while Trade and Investment was reduced from N38 billion to N23 billion.

9. ESTABLISHMENT OF COVID-19 FUND: In the revised 2020 budget, there is a proposal of N313 billion (N213 billion and N100 billion for recurrent and capital expenditures) as COVID-19 Intervention fund.