Federal Government slashes 2020 Budget By ₦312bn

The federal government of Nigeria has slashed ₦312bn from capital projects in the 2020  budget.

This was occasioned by the global fall in oil price and the outbreak of Coronavirus in Nigeria and other parts of the world.

A copy of the revised budget showed that there was a 20 per cent cut on capital projects across ministries, departments and agencies to around ₦312,820,542,675.

Naija News also understands that the national assembly and judiciary will determine the cuts to be made to their allocations.

Other proposed changes to the budget include a reduction of the budget oil production volume from 2.18 million barrels per day to 1.70 million barrels.

The projected budget benchmark price from $57 per barrel to $30.

The exchange rate was also adjusted from ₦305/$ to ₦360/$.

The projected oil revenue was reviewed downward from ₦7.67 trillion to ₦1.44 trillion.

The net non-oil revenue was also projected downward from ₦6.442 trillion to ₦5.84 trillion with corporate tax and value-added tax expected to contribute ₦1.822 trillion and N.164 trillion down from the original ₦1.836 and 2.25 trillion respectively.

Funds to be distributed to the three tiers of government from the federations account is expected to dip from ₦8.5 trillion to ₦3.12 trillion.

No adjustments were made to the debt service leaving the budgeted ₦2.45 trillion.

New borrowings by the government was adjusted from ₦1.59 trillion to ₦4.43 trillion with incremental borrowing projected at ₦2.84 trillion.