FG To Partly Fund 2021 Budget From N205.15bn Privatisation Proceeds

The Federal Government is targeting to generate the sum of N205.15bn from privatisation of government properties to partly finance the 2021 budget.

This is contained in the 2021 budget proposal which was submitted last week to a joint session of the National Assembly by President Muhammadu Buhari.

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Buhari had presented a budget proposal of N13 08trn up by 22.9 per cent from the N10.8trn 2020 budget, with  revenue projected at N7.5trn, while the deficit amounted to N5.21trn.

The President had said the proposed N13.08trn expenditure comprises Capital Expenditure of N3.85trn,
Non-debt Recurrent Costs of N5.65trn;
Personnel Costs of N3.76trn;
Pensions, Gratuities and Retirees’ Benefits of N501.19bn;
Overheads of N625.5bn;
Debt Service of N3.124trn;
Statutory Transfers of N484.49bn; and
Sinking Fund of N220bn to retire certain maturing bonds).

The aggregate revenue available to fund the 2021 budget is projected at
N7.89trn which is 35 per cent higher than the 2020 revised budget of N5.84trn.

In aggregate, 31 per cent of projected revenues is to come from oil related
sources while 69 per cent is to be earned from non-oil sources.

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Overall, the size of the budget has been constrained by our relatively low
revenues.

Analysis of the budget document showed tbat the N205.15bn approved in 2021 for privatisation proceeds represents an increase of N79bn when compared to the N126.01bn approved in the 2020 fiscal period.

The privatisation of these assets is expected to be carried out by the Bureau of Public Enterprises.

The BPE had said it would conduct 19 privatisation transactions to raise revenue for the government to fund the annual budget.

The Director General, BPE, Mr. Alex Okoh had while receiving members of the Senate Committee on Privatization and Commercialization led by its Chairman, Chief Theodore Orji, who were on an oversight visit to the Bureau said the transactions would be carried out in health, education, energy and other sectors of the Nigerian economy. 

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Okoh said the transactions are expected have positive impact on the Nigerian economy, especially in the areas of infrastructure development, improved power generation and supply, food security and job creation.

 
He expressed the Bureau’s commitment to working closely with members of the Committee to ensure that BPE delivers on it mandate for the benefit of the nation.

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