The largest oil producer in sub-Saharan Africa, Nigeria has been hit hard by the global economic crisis caused by the coronavirus pandemic, which has caused oil prices to plummet.

At 13.080 billion naira (28.9 billion euros), the 2021 budget is higher than that presented last year by around 20%.

"Generating revenue is our main challenge," President Muhammadu Buhari said, as "our economy faces the risk of recession for the second time in four years, with significant negative consequences."

"GDP growth should be negative in the third quarter of this year," warned the head of state.

“However, we are working diligently towards a rapid resumption of growth in 2021,” he added.

In 2021, the deficit is expected to climb to 4.980 billion naira (11 billion euros), or just under a third of the total budget. It should be "funded mainly by loans", Buhari said.

It is not the first time that his administration has adopted an ambitious budget, but it generally struggles to find the funds to finance it.

Subject to the repercussions of the drop in oil prices, the export of which represents around 90% of the country's foreign currency earnings, and nearly two-thirds of the national budget, it will have to borrow from international financial institutions if it wants to keep its budget. .

In April, the International Monetary Fund (IMF) approved an emergency financing plan to support the fight against the pandemic in Nigeria to the tune of 2.9 billion euros.

The English-speaking giant of 200 million people already went through a severe economic recession between 2016 and 2017, leading to millions of job losses and high inflation, which degraded the general standard of living. More than half of its population lives below the poverty line.