Fall In Oil Prices Will Not Derail 2016 Budget

A strong assurance has been given that present drop and vagaries in international oil prices will not derail Nigeria’s 2016 budget.

The Honourable Minister of Budget and National Planning, Senator Udoma Udo Udoma revealed this when top delegation of the African Development Bank visited his ministry and held discussion on critical areas which Nigeria requires assistance from the bank.

Responding when ask about the possibility of Nigeria funding it’s N6.08 trillion budget in the face of oil price drop, Senator Udoma answered “Our budget is achievable, we have ongoing reforms targeted at diversifying our revenue base, away from single oil commodidty economy. Our Minister for Petroleum, Ibe Kachukwu is assiduously applying innovative financing in his oil sector to address any likely revenue gab from our projected or anticipatedN820 billion from oil. Other reforms are the plugging of leakages through zero tolerance for corruption application of sound public financial collection system such will provide a wide coverage for VAT and personal income other taxes collection.

 He explained that the 30% of the budget allocated to capital projects is very critical for the stimulation of economic development. He further reassured that his ministry will proactively plan, advise and monitor all matters relating to national development and ensure that vital developmental policies are properly implemented by all relevant stakeholders.

The Minister of State for Budget and National Planning, Hajiya Zanaib Ahmed in her own contribution on prospect of funding 2016 budget said “Presently, we are experiencing different kind of shocks, naira depreciation, oil drops, infrastructure decay, substantial monies from recoveries of looted funds was not factored in as sources of revenue and such would also be utilized for development projects.

Also, we are counting on assistance from other developmental partners like African Development Banks to access N1.8 trillion loan needed for Nigeria’s infrastructural development. Assistance is also required in our 2016 – 2020 Medium Term Expenditure Frameworks (MTEF) and the National sustainable development Goals (SDG).

Mr Charlses Leyeka Lufumpa, Director, Department of Statistics and the Country Director Ousmane Dore from the African Development Bank both commended Nigeria’s 2016 budget, they said it was a very good and ambitious budget. They assured that their bank would assist Nigeria to achieve this developmental strive that is targeted at poverty reduction. They added that Nigeria is today having an impressive and a better economic direction, most importantly, a new positive image that will attract foreign investors.

Charles Dafe

Director (Information)