ABUJA, Nigeria (AFP) — Nigerian President Muhammadu Buhari yesterday signed off on a record budget, ratcheting up ambitious spending goals as the country struggles to bolster its stuttering economy.

The budget for 2020 was well up from last year at 10.6 trillion naira — US$34.6 billion (31 billion euros) at the central bank’s official exchange rate.

It was based on a projected price for crude oil of US$57 per barrel and output of 2.18 million barrels a day in Africa’s leading producer.

The government predicted growth would reach 2.93 per cent as Nigeria tries to shake off the hangover after emerging from its deepest recession in decades in 2017.

Buhari was elected for a final four-year term in February on pledges to boost the economy and create jobs for Nigeria’s young and rapidly expanding population.

But the government has consistently failed to fulfil its ambitious spending targets in previous years.

“With today’s global oil market outlook and our strategic approach to revenue growth, we are optimistic that we will be able to finance the 2020 budget,” Buhari said as he signed it into law.

The authorities are trying to increase revenues as they look to wean Nigeria, one of Africa’s largest economies, off oil.

They plan to increase value-added tax from 5 to 7.5 per cent.

Parliament increased the budget from the 10.33 trillion naira spending plan that Buhari presented to it in October.

Lawmakers said the increase was aimed at increasing funds for national security, road infrastructure, mines and steel development, health and other social needs.

For the first time in years, the budget was passed and approved on schedule as Buhari’s ruling party now holds sway in parliament.

Debt servicing is expected to gobble up some 2.3 trillion naira of expenditures in 2020, while the deficit will be 1.52 per cent of GDP.