The Nigerian President, Mohammadu Buhari has signed the 2019 budget into law. This was done on Monday, following the backdrop of approval by the legislature a month ago. The President of the Giant of Africa signed into law an eight trillion naira ($29billion) budget hinged on a projection of expected crude oil sales.
According to reports, the legislature upped the initial amount presented by President Buhari the previous year with 80billion; from 8.83 trillion to 8.9 trillion.
The African nation, being one heavily reliant on crude oil, made a unanimous basis for the budget. The budget valuation for oil production of 2.3 million barrels per day (bpd), crude price of $60 per barrel, and an exchange rate of 305 nairas to one dollar to cater for the budget. Also, the estimate of expenditures is targeted to be at 1.3 per cent of the GDP.
The country in the previous year had an impressive economic growth of 1.93 per cent. A swift one in comparison to the economic performance two years before. The two year low was majorly provoked by the drop in oil prices which can be tagged as significant enough for a country where 90 per cent of its foreign exchange hangs on the stability of the crude oil markets.
This year also holds good promise as the unusual demand for oil by the US, after sanctions to the country’s oil market which has caused a function in oil prices and instability in the economy. However, the orders for the natural resource is already birthing good economic health as the Nigerian external Reserves have attained stability and still making reasonable progress.
President Mohammad Buhari will be renewing his pledges to continue his administration as the next president of the polity on Wednesday 29th, May 2019 after being declared the winner of the last election. His position was maintained due to promises to further fight corruption, improve on the state of national security, and drive the economy of the nation forward.