Wednesday,January 06, 2021 / 3:11 PM / By Wole Obayomi / Header Image Credit: Twitter; @NigeriaGov

His Excellency, PresidentMuhammadu Buhari, GCFR, signed both the 2021 Appropriation Bill ("the Budget")and Finance Bill, 2020 into law on 31 December 2020, following their passage bythe National Assembly.

Before approving theproposed Budget for the President's signature, the National Assembly increasedthe aggregate revenue and planned expenditure from N7.89 trillion to N7.99 trillion andfrom N13.08trillion to N13.59trillion respectively. This has increased the budgeted fiscal deficitby N405billionfrom N5.196trillion to N5.601trillion. The additional N0.51 trillion planned expenditure in the approvedBudget is mainly due to the increase in contribution to the Development Fundfor Capital Expenditure for the year.

We commend both theNational Assembly and the Executive for ensuring a timely passage of theAppropriation Act, 2021 and enactment of Finance Act, 2020. This is thesecond consecutive year that the Budget has been approved before thecommencement of the fiscal year, and raises hope of sustaining Nigeria's returnto the January to December budget cycle.

We will issue a detailednewsletter on the 2021 Budget and Finance Act, 2020 in due course.

Please read KPMG's earlier newsletter on the 2021 National Budget proposals and Finance Bill, 2020 presented by theExecutive to the National Assembly.

Credits

* This statement was firstpublished in the Issue 1.1/ January 2021 Newsletter of KPMG of Monday, January04, 2021. For further enquiries, please contact theauthor, Wole Obayomi via [email protected]

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