‘We expect GDP growth of 2.93% in 2020’

We have sustained accretion to our external reserves, which have risen from US$23 billion in October 2016 to about US$42.5 billion by August 2019. The increase is largely due to favourable prices of crude oil in the international market, minimal disruption of crude oil prod

The total value of capital imported into Nigeria increased from US$12 billion in the first half year of 2018 to US$14 billion for the same period in 2019.

2020 Budget

Based on critical areas

Fiscal consolidation, to strengthen our macroeconomic environment;

1. Investingin critical infrastructure, human capital development and enabling institutions, especially in key job creating sectors;
2. Incentivisingprivate sector investment essential to complement the Government’s development plans, policies and programmes; and
3. Enhancing our social investment programs to further deepen their impact on those marginalised and most vulnerable Nigerians.

We have adopted a conservative oil price benchmark of US$57 per barrel, daily oil production estimate of 2.18 mbpd and an exchange rate of N305 per US Dollar for 2020.

We have adopted a conservative oil price benchmark of US$57 per barrel, daily oil production estimate of 2.18 mbpd and an exchange rate of N305 per US Dollar for 2020.

We expect enhanced real GDP growth of 2.93% in 2020,

Accompanying this is a Finance Bill. These objectives are:

1. Promoting fiscal equity by mitigating instances of regressive taxation;
2. Reforming domestic tax laws to align with global best practices;
3. Introducing tax incentives for investments in infrastructure and capital markets;
4. Supporting Micro, Small and Medium-sized businesses in line with our Ease of Doing Business Reforms; and
5. Raising Revenues for Government.

Finance Bill proposes an increase of the VAT rate from 5% to 7.5%.

The additional revenues will be used to fund health, education and infrastructure programmes. As the States and Local Governments are allocated 85% of all VAT revenues, we expect to see greater quality and efficiency in their spending in these areas as well.

Specifically, Section 46 of the Finance Bill, 2019 expands the exempt items to include the following:

1. Brown and white bread;
2. Cereals including maize, rice, wheat, millet, barley and sorghum;
3. Fish of all kinds;
4. Flour and starch meals;
5. Fruits, nuts, pulses and vegetables of various kinds;
6. Roots such as yam, cocoyam, sweet and Irish potatoes;
7. Meat and poultry products including eggs;
8. Milk;
9. Salt and herbs of various kinds; and
10. Natural water and table water.

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