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2020 Budget: FG Targets N5.78trn from Non-oil Revenue

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By Tony Obiechina, Abuja

The Federal Government said the 2020 budget would be driven by N5.78 trillion derivable from a breakdown of N1.

81 trillion non-oil, and N3.97 trillion from other sources.

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said  the N10.

594 trillion 2020 budget, which was signed into law on Tuesday by President Muhammadu Buhari, would embody N4.493 trillion recurrent and N2.465 trillion capital expenditure and a N8.
42 trillion revenue target.

Giving a breakdown of the Budget in Abuja, yesterday, the Minister said with the timely preparation and passage of the budget which would restore the normal cycle, implementation would commence on January 1, 2020.

She noted that the projected N8.42 trillion revenue is 3.2 per cent or
N263.94 billion over the executive proposal, and 10.9 per cent more
than the 2019 budget of N7.59 trillion) .

According to her, to promote fiscal transparency, accountability and comprehensiveness, the budget of 10 major government-owned enterprises (GOEs) had been integrated in the Federal Government of Nigeria’s budget with effect from 2020.


Ahmed explained that in aggregate, 44 per cent of projected revenues is to come from oil-related sources while 56 per cent is to be earned from non-oil sources, adding that overall, the size of the budget has been
constrained by relatively low revenues.


The fiscal plan which also has a deficit of N2.175 trillion will be
financed from new domestic borrowings of N744.99 billion and N850 billion foreign borrowings with privatisation proceeds expected to account for N252 billion, she said.


On some of the projects listed for the fiscal year, the minister
disclosed that N210 billion is being provisioned for some road
projects across the six-geopolitical zones.


The budget also has N560 billion provisioned for Statutory Transfer,
N2.453 trillion for debt service, and  N273 billion for debt sinking
fund.

Ahmed disclosed that agriculture and rural development has over N9billion provisioned for the promotion and development of value chains in more than 30 different commodities.

These include N1.6 billion for National Grazing Reserve Development, N3 billion for Veterinary and Pest Control Services, N7.64 billion for
Rural Roads And Water Sanitation, and N1.02 billion FGN support for Women & Youth in Agribusiness, among others.

In response to questions from journalists, the minster expressed confidence that the finance bill will be signed by the president before the week runs out.

“On the finance bill, we’re expecting that before the week runs out, the finance bill will be sent to the president for assent and our target is that the bill takes effect from January 2020″, she said.

The minister however explained that not all the provisions of the bill will take effect from January 1st as suggested in some quarters, adding that “before any implementation there must be engagement between the Federal Inland Revenue Service and commercial banks in the areas of Tax Identification Number (TIN) among others”.

According to her, the top ten government owned enterprises have been included in the budget so as to help the populace have an understanding of the budget of all the ministries.

 The minister further raised concern on the country’s population growth rate which according to her is a “Source of concern” for government as population rate supersedes growth rate by far.

“Until we reach a level where population growth rate is higher than growth rate for citizens’ benefits, it will still remain a source of concern for government and our aspiration is to grow a Gross domestic product of 7 per cent.

Initially, the target was 2020 but the recession hampered the target, but the country has picked up as we have now grow over 2 per cent, and it is a gradual journey and measures will be put in place to fasten growth rate.

“The president has pledged to take out 100 million people out of poverty and every ministry, department and agency of government is committed to contributing it’s quarter to the target”, the minister stressed.

Asked why some projects in the 2020 budget lacked address, the minister said if there is any project that reporters or civil society organizations are interested in tracing, they can visit the website of the finance ministry and the budget office and make their enquiries from the ministry.

Ahmed who added that the federal government was able to release N1.21trn for 2019 and will not make further releases for the year, however said there are some that are at various stages that will be completed as the 2020 budget is expected to take effect from January 2020.

The finance minister also clarified that capital spending in the 2020 budget was 26.4 per cent of the entire budget and it is below the aspiration for 30 per cent and the federal government was making efforts, but the major challenge is revenue.

“However, with the passage of the finance bill, PSC and the Inland Basin Act, significant revenue will be realized going forward.

 Ahmed also confirmed that annual provision has been made in the 2020 budget for the national minimum wage and also in December 2019 salary for the payment of arrears for consequential agreement.

 Also speaking, the Minster for State, Budget and National Planning, Prince Clem Agba said to ensure effective monitoring and evaluation of federal government budgets in 2020, MDAs would adopt partial technology in monitoring projects

 “To ensure transparency in projection execution, different ministries, departments and agencies of government are employing partial technology to track projects.

 “Also, citizens are being engaged to give feedback in the form of pictures or messages on certain projects going on in the constituency or locality,” he added.  

In his remarks, Director General, Budget Office of the Federation, Mr Ben Akabueze assured civil society organizations on collaboration and consultations in the budget drafting ahead of the 2021 budget.

“The imperative of citizens participation in the budget process cannot be over emphasized, and so, we have continued to engage the citizens in the process.

” It is in furtherance of this that we have provided platforms for citizens to make observations and upload pictures of ongoing projects through the Citizens Budget app, available on the Google Play Store”, he added.

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DBN Signs $61m Credit Deal With AfDB, Unveils Support Initiative Report

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By Tony Obiechina, Abuja

The Development Bank of Nigeria Plc (DBN) has launched DAWN: DBN Action for Women in Nigeria, unveiled its Impact Report and presented MSME Data Assets at the seventh edition of Annual Lecture held in Abuja.

DBN, in a statement on Thursday, said while delivering a welcome address, its Managing Director and Chief Executive Officer, Dr Tony Okpanachi, said the central challenge was no longer reforms themselves but ensuring benefits reach businesses at end of the chain.

He asked how to make sure benefits reach traders in Onitsha, fabricator in Aba, farmer in Kebbi and young founder in Yaba, noting that MSMEs accounted  for about half of Nigeria’s GDP and more than eight in every ten jobs, adding that when reform works for MSMEs it works for most Nigerians.

He explained that reform becomes prosperity only when entrepreneurs can act on it whether through long tenor loans to buy equipment, banks willing to take risk or skills and records needed to grow.

He said working through Participating Financial Institutions DBN provides longer term funding, partial credit guarantees through subsidiary Impact Credit Guarantee Limited and capacity building including Entrepreneurship Training Programme.

He disclosed that as at December 2025 DBN had disbursed a cumulative N1.4 trillion to MSMEs through 84 Participating Financial Institutions creating about 1.6 million jobs nationwide.

Under the new five year strategy, the Bank aims to reach more than two million MSMEs with deliberate targets for women led businesses, youth led businesses and underserved states.

On DAWN, Okpanachi said finance alone had not enabled enough women-led businesses to scale.

He said initiative brings together financing, guarantees and credit support, technical assistance, outcome linked grants and market linkages delivered through banks, microfinance institutions, fintechs, aggregators, cooperatives and direct channels.

Its priority sectors are agriculture and exports, healthcare, arts and creatives, technology and green business.

He said DAWN is about moving gender focused lending beyond intention and turning access into opportunity.

On the sidelines of the lecture DBN and African Development Bank held a signing ceremony of AfDB DBN 61 million United States dollars Gender Line of Credit development that reinforces Bank commitment to women led enterprises.

Okpanachi urged Participating Financial Institutions to extend lending into sectors and states where access to finance has been limited, policymakers and regulators to measure reform by what changes for business at end of chain and MSMEs to formalise, keep good records and use support now available.

The Vice President as Special Guest of Honour was represented by Dr Fred Iklaga Senior Technical Adviser in the Office of Special Adviser to the President on Economy.

Keynote speakers were Chief Executive Officer of MTN Nigeria, Dr Karl Toriola, and Chairman of Nigeria Sovereign Investment Authority, Dr Segun Ogunsanya.

Fireside chat featured Chief Executive Officer of Sterling Bank Abubakar Suleiman, manufacturing and trade entrepreneur Mrs Omoyemi Chukwurah and by video Kola Masha of Babban Gona.

The Secretary to the Government of Federation, represented by Augusta Warren Bekaredebo, said 2026 tax reforms would bring relief to many small businesses expressing optimism that a lot of businesses will be smiling by next year because they will be exempted from tax.

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NLC Threatens Nationwide Action as Talks With FG Collapse

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By Tambaya Julius, Abuja 

The Nigeria Labour Congress (NLC) has threatened possible nationwide industrial action following the failure of talks with the Federal Government over workers’ welfare, petrol prices and other outstanding labour demands.

The warning came after a meeting between the government and organised labour at the Ministry of Labour in Abuja on Thursday, October 22, ended without an agreement.

The congress has given the Federal Government until Tuesday, October 27, to make meaningful progress on the issues, warning that its relevant organs would decide the next line of action if the next meeting fails to produce concrete commitments.

The NLC has also directed its affiliates, state councils and civil society allies to begin mobilising members for possible nationwide action.

In a statement issued after the meeting, the NLC Acting General Secretary, Benson Upah, expressed disappointment over what he described as the government delegation’s lack of preparedness for the negotiations.

According to the congress, organised labour presented its demands in good faith but left the meeting without any concrete commitments from the government.

The demands include a reduction in petrol prices to 2024 levels, renegotiation of the national minimum wage, implementation of agreed tax relief measures and resolution of the terms of settlement involving the Joint Health Sector Unions (JOHESU).

The congress also called for the resolution of issues raised by the Joint Public Service Negotiating Council (JPSNC) over peculiar allowances, wage awards and hazard allowances.

The NLC said the government delegation lacked the necessary authority to engage meaningfully on the issues presented by labour representatives.

“The meeting between the Federal Government and organised labour, convened at the Ministry of Labour in Abuja on 22nd October 2026, has ended without resolution,” the statement said.

It added that the Minister of Labour requested that the meeting be adjourned until October 27 to allow the government to prepare adequately for further discussions.

The preparations, according to the statement, would include bringing relevant ministers and heads of departments and agencies to the negotiating table.

The congress said it remained open to dialogue but would not accept continued delays in addressing workers’ concerns.

“We will report back to our organs, and if no meaningful progress is made on Tuesday, the relevant organs of the NLC will decide the next line of action,” it said.

The labour body urged workers and members of the public to remain calm while the negotiations continue, even as it directed its affiliates and allies to prepare for possible industrial action.

“However, we urge all affiliates of NLC and TUC; all state councils and our civil society allies to be alert and start mobilising for a possible action across the nation while we hope that the tenets of our demands are met by the government,” the statement added.

The October 27 meeting is expected to provide another opportunity for both sides to address the outstanding issues and prevent a possible escalation of the dispute.

However, the NLC’s decision to begin mobilisation suggests that tensions could rise if the next round of talks fails to produce meaningful progress.

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Election Campaigns: FRSC Bars Officers from Politicians’ Escort

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The Federal Road Safety Corps (FRSC) has barred its personnel from escorting politicians during campaigns for the 2027 general elections.

Zonal Commanding Officer, RS6, ACM Abimbola Owolabi, gave the directive during her maiden visit to the Cross River Command in Calabar on Wednesday.

Owolabi said patrol vehicles and sirens must not be used for political activities or private engagements, including weddings and funeral processions.

She directed officers deployed to campaign venues to focus exclusively on traffic management to prevent congestion and road crashes.

The zonal head warned personnel against leading political convoys or providing escorts for politicians, stressing that official vehicles must not be used for unauthorised purposes.

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