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The federal government of Nigeria has disclosed that the current 2010 budget as it stand is unrealistic and hence will review it to a more realistic position for better implementation.
The budget which stand at N4.6 trillion and with only five out of the financial year’s 12 months already gone will be reviewed downwards because of the unstable country’s oil production as well as the market price of the oil.
Minister of State for Finance Remi Babalola told newsmen after the reconvened Federation Accounts Allocation Committee (FAAC) in Abuja that the review would take into consideration the revenue profile of the nation.
He said, “Now, we are going on with negotiations and further discussions on how to review the budget in such a way that we have a more realistic revenue profile.”
In November last year, President Umaru Musa Yar’adua had submitted a N4.1 trillion appropriations bill for 2010 to the National Assembly based on an oil price benchmark of $62 per barrel. Oil price benchmark to the National Assembly in November 2009. The lawmakers later jacked it up to N4.6 trillion based on a $67 per barrel oil price benchmark.
Governor of the Central Bank of Nigeria Sanusi Lamido Sanusi and Managing Director of the World Bank Ngozi Okongo-Iweala both said recently that the 2010 budget was not realistic. The dwindling revenue profile of government and the volatility in the international price of oil were considered problems for the implementation of the 2010 budget. Asked which areas of the budget would be amended, Babalola said “basically the revenue profile, the benchmark price and volume.”
FAAC meeting was suspended on May 14 because state governments rejected their April allocation due to non-inclusion of their three months’ arrears of over N700 billion.
Instead of about N1.2 trillion (inclusive of April allocation initially put at N493 billion and the three months arrears of N700 billion) the states were expecting, they got only N749.883 billion yesterday. The amount would be shared by the federal, state and local governments.
The total amount that was distributed comprising the April allocation alongside the three months arrears is N749.88 billion. N410 billion was for the April allocation while N339.6 billion was for the arrears from January till March. States however said they were satisfied with what they got.
Taraba State Commissioner of Finance Usman Rebo, who is also the chairman of Commissioners of Finance Forum, spoke for the commissioners. Babalola said the allocation was made based on “doctrine of economic pragmatism.”
“It is based on the actual using the benchmark price. We are still using the benchmark price of N57 per barrel, but we actually used the actual that we have seen in the first quarter”, he said.
The federal government of Nigeria has disclosed that the current 2010 budget as it stand is unrealistic and hence will review it to a more realistic position for better implementation.
The budget which stand at N4.6 trillion and with only five out of the financial year’s 12 months already gone will be reviewed downwards because of the unstable country’s oil production as well as the market price of the oil.
Minister of State for Finance Remi Babalola told newsmen after the reconvened Federation Accounts Allocation Committee (FAAC) in Abuja that the review would take into consideration the revenue profile of the nation.
He said, “Now, we are going on with negotiations and further discussions on how to review the budget in such a way that we have a more realistic revenue profile.”
In November last year, President Umaru Musa Yar’adua had submitted a N4.1 trillion appropriations bill for 2010 to the National Assembly based on an oil price benchmark of $62 per barrel. Oil price benchmark to the National Assembly in November 2009. The lawmakers later jacked it up to N4.6 trillion based on a $67 per barrel oil price benchmark.
Governor of the Central Bank of Nigeria Sanusi Lamido Sanusi and Managing Director of the World Bank Ngozi Okongo-Iweala both said recently that the 2010 budget was not realistic. The dwindling revenue profile of government and the volatility in the international price of oil were considered problems for the implementation of the 2010 budget. Asked which areas of the budget would be amended, Babalola said “basically the revenue profile, the benchmark price and volume.”
FAAC meeting was suspended on May 14 because state governments rejected their April allocation due to non-inclusion of their three months’ arrears of over N700 billion.
Instead of about N1.2 trillion (inclusive of April allocation initially put at N493 billion and the three months arrears of N700 billion) the states were expecting, they got only N749.883 billion yesterday. The amount would be shared by the federal, state and local governments.
The total amount that was distributed comprising the April allocation alongside the three months arrears is N749.88 billion. N410 billion was for the April allocation while N339.6 billion was for the arrears from January till March. States however said they were satisfied with what they got.
Taraba State Commissioner of Finance Usman Rebo, who is also the chairman of Commissioners of Finance Forum, spoke for the commissioners. Babalola said the allocation was made based on “doctrine of economic pragmatism.”
“It is based on the actual using the benchmark price. We are still using the benchmark price of N57 per barrel, but we actually used the actual that we have seen in the first quarter”, he said.
