The Federal Executive Council (FEC) on Wednesday approved a budgetary proposal of N8.73 trillion for 2019 fiscal year, N400 billion lower than the 2018 budget
The Minister of Budget and National Planning, Sen. Udoma Udo Udoma, announced this when he addressed State House correspondents at the end of the Council’s meeting presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.
Udoma said that the council also approved the 2019/2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
“Today, the Federal Executive Council approved the 2019/2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). It was approved and it would be submitted to the National Assembly for further consideration.
“The MTEF/FSP that was approved today is designed to translate the strategic development objectives of the Economic Recovery and Growth Plan (ERGP) into a realistic and implementable budget framework for the medium term. Inputs from stakeholders were part of the documents that was submitted,” he said.
The minister said that the MTEF projected a proposed budget of N8.73 trillion for 2019 fiscal year, saying the figure was about N400 billion less than N9.12 trillion for 2018 budget.
He said the key assumptions highlights being proposed for 2019 budget included oil price benchmark of 60 dollars per barrel, oil production of 2.3 million barrels per day, exchange rate of N305/$1, and GDP growth rate of 3.01 per cent.
The Minister of Finance, Hajiya Zainab Ahmed, also disclosed that FEC approved that Nigeria should receive $1.5 million loan from African Development Bank for Lagos-Abidjan expressway.
She explained that the dual carriage way project with six lanes was approved at the 42nd Ordinary Session of the Heads of State meeting of the ECOWAS countries.
She said the highway would pass through five countries including Nigeria, Cote d’ Ivoire, Benin, Ghana and Togo.
“The African Development Bank in 2016 approved a total sum of $13.5 million for the whole of the project to finance both the study in the form of a loan as well as a grant. So, this $13.5 million has been distributed among the participating countries and the component for Nigeria is $1.5 million.
“The Federal Executive Council has approved that we accept this facility so that the project study can be commissioned towards the planning of the execution of the highway project itself,” he added.
The Minister of Power, Works and Housing, Babatunde Fashola, who also addressed the correspondents on the outcome of the meeting, said N63 billion was approved by the council for the reconstruction and rehabilitation of the Lagos-Badagry-Seme border road.
He said: “The ministry of Works presented a memorandum for the award of the Lagos-Badagry-Seme border road for rehabilitation and reconstruction of sections of it.
“It is a total of 46 kilometres and that excludes the part under contract by the Lagos State Governmement, from Ericmore to Okokomaiko.
“Council approved 46 kilometres form Agbara to Seme border and out of that, 24 kilometres will be six lanes and the remaining 22 kilometres will maintain the existing four lanes without expansion but with reconstruction and rehabilitation. The contract sum is N63.023 billion.”
According to the minister, the road is part of the Lagos-Abidjan highway corridor being constructed jointly by Nigeria and some neighbouring West African countries, adding that the Nigerian section is Ericmore to Badagry.
“The Nigerian section is this road that was approved by the Federal executive Council. So we are now constructing our part; Ghana, Cote D’Ivoire have done theirs while Togo and Benin Republic also have something in place now,” he said.