The Federal Government of Nigeria will spend N1,654,821,585,930 under its service-wide votes in 2021 which comprises expenditures on the settlement of bills, local debts and contributions to International organisations amongst others
Service-wide votes is a contingency fund allocated in the annual budget under the control of the Federal Ministry of Finance, Budget and National Planning.
Included in the service-wide votes is the N100 billion funding for military operations of Lafiya Dole in Borno, Adamawa and Yobe and other operations of the Armed Forces. The Federal Government also set aside N5,750,380,668 under the service-wide votes to settle obligations to ex-Nigerian Airways workers in 2021.
Some of the expenditures profiled under the service-wide votes are settlement of Ministries, Departments and Agencies’ electricity bills (N5 billion); contributions to International Organisations (N30 billion), and settlement of local contractors’ debt (N15 billion).
Others include N25 billion for special intervention; N17.899 billion refund to a special account; N16.703 billion refund to the Asset Management Company of Nigeria (AMCON); N20 billion for special intervention programmes and projects; N15 billion for subscription in shares of international organisations, and N1 billion on the Presidential Enabling Business Environment Council (PEBEC).
The Presidential Amnesty Programme and the reintegration of transformed ex-militants will receive N65 billion under the service-wide votes while the sum of N4 billion will be utilised in the construction of the National Assembly library.
The sum of N1 billion has been earmarked by the government to execute the Integrated Personnel Payroll Information System (IPPIS) in 2021.
Meanwhile, the Federal Government has projected aggregate revenue of N7.86 trillion in 2021, including grants and aids of N354.85 billion as well as revenues of 60 government-owned enterprises.
Of the N7.86 trillion aggregate revenue, the government is projecting N2.01 trillion from oil.
Aggregate spending projected in 2021 is N13.08 trillion, leaving a deficit of N5.2 trillion, representing 3.4 per cent of the GDP.
President Muhammadu Buhari had during the 2021 Budget last Thursday said the deficit would be financed mainly by new borrowing, totalling N4.28 trillion.
The 2021 budget, according to the president, is underlined by an oil benchmark of $40 per barrel and a daily oil production estimate of 1.86 million barrels.
The projected daily oil production is inclusive of condensates of 300,000 to 400,000 barrels per day.
InsideBusiness.ng recalls that the government had revised its oil benchmark for the 2020 budget from $57 per barrel to $28 per barrel due to the massive drop in crude oil price as a result of COVID-19 pandemic
It also revised the targeted daily oil production from 1.94 million as initially proposed to 1.8 million barrels per day.
On the performance of the 2020 Budget, the revenue earned as of July 2020 was N2.10 trillion, representing 68 percent of the government’s pro-rated target in the revised 2020 budget.
Of the N2.10 trillion revenue realised to fund the 2020 budget, N992.45 billion came from oil while non-oil tax revenues accounted for N692.83 billion.
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