NIGERIA REVISES ITS NATIONAL BUDGET AMIDST COVID-19

The Nigerian senate passes a revised 2020 budget of N10.81 trillion ($27.8 billion), which is lower in value than the 10.59 trillion Naira ($34.6 billion) budget passed in December 2019. At 31st December 2019, the exchange rate of $1 was 361.946 naira. Compared to June 12, 2020 as the value of naira has depreciated to 387.978 naira following the global impact of coronavirus.

More so, revenue in the new budget is lower because Nigeria heavily depends on revenues from crude oil sale which is currently struggling. In this new budget, the government plans to spend N2.4 trillion ($6.18 billion) on capital expenditure and N2.9trillion ($7.47 billion) on debt servicing.

The budget will become operational when, President Muhammadu Buhari gives his assent

SOURCE: BusinessDay | Reuters |XE Currency Converter