President Muhammadu Buhari has signed the 2019 budget of the Federal Government of Nigeria into law. The Budget, which was signed on Monday, 27 May 2019, puts total spending for 2019 at ₦8.92 trillion. The final assent by the President came two days before the end of the current administration and over five months after the Appropriation Bill was presented at a joint session of the National Assembly by the President on 19 December 2018.
It would be recalled that the President presented the 2019 “Budget of Continuity”, of ₦8.83 trillion, to a joint session of the National Assembly in December 2018. Upon review by the National Assembly, the approved Budget reflects a net increase of about ₦90.33 billion which represents the impact of the changes made by the National Assembly. Changes made by the National Assembly include reduction in certain items, increases in some and insertion of new items.
The Honourable Minister of Budget and National Planning is expected to provide breakdown of the Budget on Wednesday, 28 May 2019. The briefing by the Budget and National Planning Minister is expected to cover, amongst others, key priority areas, sectoral allocations and how the budget deficit will be funded.
A major area of concern for the newly signed Appropriation Act 2019 is the potential adverse effect on the Economic Recovery and Growth Plan (ERGP). The President expressed reservations on implementing the Budget as passed and has indicated intention to engage the leadership of the ninth National Assembly, upon inauguration, to address the concerns with this Budget.
Please expect our newsletter, which will cover the details of the 2019 Budget of Continuity and highlight the possible implications on Nigeria’s economy. You may access our earlier publication on the presentation of the 2019 Budget by the president via this link.