2019 Budget – Has the fiscal cycle and dynamics changed?

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...
- Advertisement -

The Senate recently passed the 2019 Appropriation Bill of N8.9tn – roughly five months after it was presented to the National Assembly. However, the bill must still pass through a final hurdle of presidential assent, and If the past 9-year fiscal cycle is anything to go by, the probability that we could see a presidential assent this month is 44.0%.

2019 Budget - Has the fiscal cycle and dynamics changed? - Brand Spur

The bill (N8.9tn) is N86.0bn higher than the initial proposal of N8.8tn presented by President Muhammadu Buhari to the National Assembly. This increment reflects increased allocations to security services to enable them to tackle rising insecurity challenges, as well as the inclusion of severance allowances for outgoing legislators. Effectively, this brings the official projection for fiscal deficit to N1.9tn (1.4% of GDP).

In addition, the budget is predicated on ambitious revenue expectations such as an oil production target of 2.3mb/d. Meanwhile, the last time production reached this level was in 2014 and we do not think this level of production is attainable this year, amid high operational risks and regulatory bottlenecks – not to mention the
force majeure recently declared by two international oil companies. Clearly, such overly optimistic revenue expectations would continue to create scope for under-implementation of Nigerian budgets.

- Advertisement -
2019 Budget - Has the fiscal cycle and dynamics changed? - Brand Spur2019 Budget - Has the fiscal cycle and dynamics changed? - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Read Also:  MTN Nigeria Publishes Q1-2019 Earnings ahead of its Proposed Listing

This site uses Akismet to reduce spam. Learn how your comment data is processed.

2019 Budget - Has the fiscal cycle and dynamics changed? - Brand Spur2019 Budget - Has the fiscal cycle and dynamics changed? - Brand Spur

Latest News

Global Digital Advertising Spending to Jump 14% YoY and Hit $395B in 2021

Although the COVID-19 pandemic slowed the growth of digital advertising, online ads are still expected to increase their market...

Xiaomi shares slide despite positive third-quarter performance

Xiaomi shares slid 3.7% today in Hong Kong to HK$26.15, despite the phone maker’s positive financial and operating performance during the third quarter of the year. The...

Pandemic winners: HP and Dell report better than expected earnings

Both HP and Dell reported their earnings after the close of markets yesterday. The earnings were better than expected as the work-from-home trend lifted...

Manchester City 2020-2021 Squad Most Expensive Out of Top 5 Leagues

Football transfer fees have exploded over the last two decades with some of the top clubs not afraid to spend more than €100M for...

InfraCredit to Raise Fresh Capital

The Infrastructure Credit Guarantee Company (InfraCredit) has revealed plan to raise additional capital to fund critical projects in Nigeria. The unit of the Nigeria Sovereign...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -2019 Budget - Has the fiscal cycle and dynamics changed? - Brand Spur2019 Budget - Has the fiscal cycle and dynamics changed? - Brand Spur