President Muhammadu Buhari has said the two recessions witnessed by the country in four years affected the growth of the economy despite the reforms introduced.
He said this while giving an overview of the 2021 budget performance before the joint session of the National Assembly on Thursday.
This was the prelude to the presentation of the 2022 budget before the National Assembly for consideration.
The President said while oil revenue target performance was below expectation, non-oil revenue rose above target by 7% in 2021.
He noted that the production shortfall of oil is the main factor that was also exacerbated by the COVID-19 pandemic.
He said the 2022 budget of N16.39 trillion was tagged “Budget of Growth and Sustainability” which was predicated on certain parameters to reflect current realities.
Deficit financing amounting to N5.01 trillion will be through loans and other sources.
He said, although there were concerns, the country came out of the two recessions it witnessed in the last few years.
Buhari assured that Nigeria has no debt sustainability problem but a revenue challenge.
It could be recalled that the National Assembly had earlier approved the 2022-2024 Medium Term Expenditure Frameworks, MTEF, and Fiscal Strategy Paper, FSP.
The lawmakers approved an oil price benchmark of $57 per barrel which is higher than the $40 per barrel in 2021.
They also approved an exchange rate of N410/$, daily crude oil production of 1.88mbpd, 2.23mbpd, and 2.22mbpd for 2022, 2023, and 2024 respectively.