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Senators Engage in Verbal War Over 2021 Budget

Strategic Insights

— 1 min read

The debate on the 2021 budget in Nigeria's National Assembly turned into a verbal war between senators of the All Progressives Congress (APC) and the Peoples Democratic Party (PDP) on October 8, 2020. The 2021 Appropriation Bill, presented by President Muhammadu Buhari, proposes a total sum of N13.08trn for expenditure in the 2021 fiscal year. The debate took a political dimension as senators from both parties tackled each other's submission based on party affiliation.

Key Takeaways:

  • The 2021 Appropriation Bill proposes a total sum of N13.08trn for expenditure in the 2021 fiscal year, with N9.97trn appropriated for expenditure, excluding government-owned enterprises and project-tied loans.
  • The budget deficit is projected to be N5.21trn, which is over three per cent of the nation's 2019 GDP growth, and will be financed by borrowing, with 50 per cent domestic and 50 per cent foreign borrowing.
  • Senator Yahaya Abdullahi (APC, Kebbi North) emphasized the importance of examining the 2021 budget against the backdrop of historic challenges and social and economic changes.
  • Senator Enyinnaya Abaribe (PDP, Abia South) disagreed with the proposed 2021 budget, describing it as unrealistic and not reflecting the world's changed economic landscape.
  • Senator Ahmed Lawan (APC) reminded Abaribe that the budget proposal is an estimate and assumption.
  • Senator Ike Ekweremadu (PDP, Enugu West) also disagreed with the Senate leader's position, stating that advocates of restructuring of Nigeria are not hell-bent on dismembering the country.

Statistics:

  • Total sum proposed for expenditure in the 2021 fiscal year: N13.08trn
  • Total sum expended in the 2019 fiscal year: N8.92trn
  • Projected budget deficit for 2021: N5.21trn (over three per cent of the nation's 2019 GDP growth)
  • Percentage of domestic borrowing for budget deficit financing: 50%
  • Percentage of foreign borrowing for budget deficit financing: 50%

Sources:

  • Leadership Newspaper, October 8, 2020
  • National Assembly, National Budget, 2021
  • Statement of the Minister of Finance, Budget, and National Planning, Mrs Zainab Ahmed, Abuja, October 8, 2020

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