What to expect ahead of President Buhari’s 2020 budget presentation

Nigeria's Federal Executive Council is gearing up to finalize the 2020 budget in preparation for President Muhammadu Buhari's imminent presentation to a joint session of the National Assembly. The anticipated budget was initially proposed at N10.7 trillion, a figure that has been subject to scrutiny and adjustments. The Senate recently increased the proposed budget to N10.7 trillion, setting the stage for a crucial financial blueprint for the upcoming year. Steve Osho, Co-Managing Partner at Comercio Partners, shared his insights on the budget projections, highlighting key areas of focus and concerns that need to be addressed going forward in an exclusive interview with CNBC Africa. The 2020 budget projections include key parameters such as oil production targets and oil price benchmarks. The budget estimates a daily oil production of 2.18 million barrels and an oil price benchmark initially set at $55, later revised to $57 by the Senate. Analysts view these figures as realistic, considering the volatility in the global oil market. Osho concurred with the assessment, citing the need to align the budget with prevailing market conditions. He emphasized the importance of prudent fiscal management and the need for transparency in budget execution to enhance economic stability. The discussion also delved into the challenges posed by the proposed minimum wage increase and the impact on government revenue and expenditure. Osho highlighted the importance of ensuring efficient utilization of funds to drive productivity and achieve tangible outcomes. The budget deficit remains a pressing concern, necessitating proactive measures to balance revenue generation and expenditure. One key area of focus is the government's reliance on borrowing to finance budget deficits, which underscores the need for sustainable revenue sources. Osho emphasized the need for private sector participation in driving economic growth and infrastructure development. He underscored the pivotal role of infrastructure in supporting private sector activities and boosting overall productivity. The discourse also touched on the government's economic growth objectives and the challenges in translating policy projections into tangible outcomes. Osho expressed reservations about the GDP growth forecasts, citing discrepancies between projections and actual performance. He called for greater transparency and accountability in fiscal management to instill investor confidence and drive economic growth. In conclusion, the analysis underscored the importance of fiscal discipline, transparency, and strategic planning in achieving sustainable economic growth. The upcoming budget presentation presents a critical opportunity for the government to demonstrate its commitment to prudent financial management and economic reforms.