President Muhammadu Buhari on Tuesday presented a record 10.33 trillion naira budget for 2020 to the National Assembly, the first spending plan of his second term after he was re-elected in February.
The spending estimate for Africa’s top oil exporter assumes crude production of 2.18 million barrels a day and an oil price of $57 per barrel.
The Federal Executive Council had recently approved the increment of the VAT from 5 percent to 7.5 percent.
The President said the additional revenue to be generated from the higher rate would be deployed in the health and education sectors as well as infrastructural programmes.
The government also set aside 2.45 trillion naira for debt servicing in the 2020 budget, out of which local debts would take 296 billion naira.
As is customary, the budget must still be approved by parliament before being signed into law by Buhari — a process that can take months.
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