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Market Digest Nigeria

Finance

Despite Huge debt Profile, Senate Increases 2020 Budget By N450bn

Senate President Ahmad Lawan yesterday said the 2020 Appropriation Bill would be passed today “by the grace of God”.

Lawan gave the assurance after the Senate Committee on Appropriation, chaired by Senator Jibrin Barau (APC, Kano North) had presented the budget report. The Appropriation Committees of both chambers yesterday submitted their reports.

Lawan commended the committee for a job well done and notified members that copies of the report were not ready for circulation. “Let me also inform our colleagues here that the committee will today work hard to complete printing the details of the budget and we hope that it will be distributed to us at the end of today.

“They are still printing them so we expect that the copies will be made available to all Distinguished Senators.”

A source close to the Appropriations Committee told our correspondent that there was an increase in the N10.33 trillion budget size presented by President Muhammadu Buhari on October 8, 2019. He said that the capital component of the budget had been increased by N450 billion.

“Initially, the capital expenditure was increased by N500 billion, but was reduced to N450 this morning” he said.

The source added: “You know N100 billion has been allocated for the execution of constituency projects in the 2019 budgets but there was no cash backing for the execution. Adding up with the N100 billion of the 2020, it will be N200 billion.”

When contacted, the chairman of the Committee on Appropriation, Senator Barau Jibrin, said the report would be debated today, pleading that “let’s not be speculative”.

It was learnt that, the House of Representatives reduced the proposed recurrent expenditure to N4.48 trillion from the N4.88 trillion proposed and increased capital expenditure to N2.47 trillion from the N2.14 trillion proposed.. The house also increased debt servicing to N2.72trn from the N2.46 trillion proposed.

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