Nigeria’s President signs 2020 budget into law

CBN introduces special foreign exchange window for investors and exporters

President Muhammadu Buhari has signed the 2020 budget of the Federal Government of Nigeria (the Budget) into law. The Budget, which was signed on 17 December, 2019 puts the total estimated spending for 2020 at ₦10.59 trillion. The assent came barely two months after the President presented the Budget to a joint session of the National Assembly. This is a laudable development as it is the first time in recent years where the country’s budget will be signed into law ahead of the fiscal year.

It would be recalled that the President submitted the 2020 “Budget of sustaining growth and job creation” of ₦10.33 trillion along with the 2019 Finance bill, to the National Assembly, on 8 October 2019. Subsequently, the National Assembly approved a budget of ₦10.59 trillion reflecting a net increase of about ₦229 billion and a total budget deficit of ₦2.28 trillion.

The 2019 Finance bill, which is expected to raise revenue for the government to enable it meet the revenue projections in the Budget, was also passed by the National Assembly on 28 November, 2019. We expect the President’s assent of the Finance bill to follow shortly.

We also expect in the coming days, that there would be a further breakdown of the approved 2020 budget which would cover amongst others, key priority areas, sectoral allocations and how the budget deficit will be funded. You may access our earlier publications on the 2020 Budget and Finance bill via these links; 2020 budget, 2019 Finance bill.

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