The Minister for Finance, Budget and National Planning, Zainab Ahmed, says under-recovery of fuel subsidy will gulp 450 billion naira in 2020. She stated at the public presentation of the 2020 budget proposals.
The Minister added that it was called ‘under-recovery’ because it was the cost of operation of the Nigeria National Petroleum Corporation, NNPC. She said that recurrent spending was expected to raise by 11.28 per cent, from 4.39 trillion naira in 2019 to 4.88 trillion naira in 2020.
This, she said, would reflect in salaries and pensions, including provisions for implementation of the new minimum wage.
Zainab explained that the overall budget deficit of 2.17 trillion naira represents 1.52 per cent of the Gross Domestic Product, GDP and 1.64 trillion naira of it would be funded by both domestic and external borrowing.
According to the Minister, the external sources will provide 850 billion naira, while domestic sources will provide 744.99 billion naira.