The federal executive council has agreed to submit to the National Assembly an 8.73 trillion naira ($28.57 billion) draft 2019 budget, a reduction from a record 9.12 trillion naira in 2018.
Budget minister, Udoma Udo Udoma stated that the 2019-2021 Medium Term Framework, a draft that needs to be approved by parliament before the budget is finalised, assumes an oil price of $60 per barrel and production of 2.3 million barrels per day.
Last week Udoma said the government planned to cut its 2019 budget as part of an effort to lower debt.
Nigeria, has experienced sluggish growth since it emerged early last year from its first recession in a quarter of a century. The recession was largely caused by lower crude prices and attacks on energy facilities in the Niger Delta, the oil production heartland.
Oil production, on which Nigeria relies for about two-thirds of government revenues, was at 1.9 million barrels per day in the second quarter against an estimated 2.3 million barrels per day budgeted for in 2018.
“Full details of the medium-term framework will be submitted to the National Assembly for approval soon,” Udoma said shortly after Wednesday’s cabinet meeting. The draft also assumes an exchange rate of 305 naira to the dollar and gross domestic product (GDP) rising by 2.01 percent. GDP was up 1.50 percent in the second quarter of 2018. ($1 = 305.5500 naira)