Nigerian Senate on Thursday approved increase in the proposed nation’s budget for 2020 from N10.002tn to N10.729.4 tn.
It also increased the oil benchmark from $55 per barrel to $57 per barrel, representing a $2 increase.
This was as the Upper legislative chamber passed the 2020-2022 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) submitted to it by President Muhammadu Buhari last week.
The passage followed the presentation and consideration of the report of the Senator Solomon Adeola-led Senate Committee on Finance by the Red Chamber in Abuja.
The Senate also increased the 2020 revenue target by the Nigeria Customs Service (NCS) by N557.4billion, that is, from N942.6 billion to N1.5trillion.
It however retained the exchange rate at N305 per dollar and oil production benchmark at 2.18mbpd as proposed in the MTEF/FSP by the executive.
The Committee also recommended the adoption of N1.5 trillion as the amount for new borrowing by the Federal Government in 2020, as a result of reduction of N200 billion which was sourced from the increase of revenue target of the Nigeria Custom Service.
The Committee further called for an urgent review and amendment to the Fiscal Responsibility Act (FRA Act) and the various laws of the revenue generating agencies to align with current realities.
This information form part of the recommendations of the National Assembly Joint Committee on Finance report on 2020-2022 MTEF/FSP which was considered by the Senate in Abuja on Thursday.
The Committee’s recommendations which were approved by the Senate are as follows:
“Following intensive engagement with NNPC and relevant information obtained during the session, the Committee recommends the adoption of 2.18mbpd as daily production output in 2020. In view of concerted effort by NNPC and security agencies the menaces of oil theft and vandalization, the 2.18mbpd would be realizable.
The Committee recommends the adoption of $57/barrel as crude oil benchmark price for the fiscal ear 2020.
“The revenue target of Nigeria Customs Service (NCS) of N942.6 billion for 2020 should be increased to N1.5 trillion, as a result of the performance of NSC in last 9 months with 3 months still outstanding.
“The NCS revenue as at September stood at N1 trillion against the budget figure of N969. 8 billion for the year 2019. The Joint Committee commends the NCS for exceeding the targeted revenue despite the global economic challenges and closure of the Nigerian boarders.
“The sum of N557.4 billion from the revenue increment of NCS be used to reduce borrowing by N200 billion and increase capital expenditure thereby decreasing the size of the budget deficit from N1.7 trillion to N1.5 trillion and also increase the total capital available to MDA by N357 billion, from N1.01 trillion to N1.367 triilion.
“The exchange rate of N305/$ should be maintained for economic stability. While more work should done by the Honourable Minister of Finance and all economic advisers and her team on improving the economic growth by increasing the GDP and reducing the inflation rate to single digit.
“The saving on income accruing from the increase of the benchmark amounting to N172 billion which represent the Federal government potion of the $2 added to the benchmark be used to pay salaries and emolument of the proposed 30,000 new employees.
“Proper investigation be carried out on the e-collection stamp duties domicile with Central Bank of Nigeria for the past years so as to show probity and accountability and of course increase the revenue base of the country”.