The Federal government on Wednesday disclosed that the revenue profiles of the country has dropped by 60 per cent, there making it difficult to implement capital projects fully in 2016.
The Secretary to Government of the Federation, David Babachir Lawal, stated this on Wednesday.
Lawal spoke when he appeared before a Joint Senate Committee on Ethics, Privileges and Public Petitions, Appropriation and Finance to defend the statement credited to him in the media on constituency projects.
The Eagle Online recalls that the SGF was quoted in an interview he granted to one of the national dailies to have said that the Federal Government may not implement constituency projects in the 2016 budget.
Lawal based the sharp drop in the country’s revenue largely on the activities of militants in the Niger Delta region.
He said the oil benchmark of the Federal Government has been drastically affected by activities of militants, adding that the country was now producing about 800,000 barrels per day.
The Eagle Online recalls that before now, the country was producing 2.2m barrels of crude oil per day.
It went down to 1.8m barrels per day and later to 1.4m barrels per day.
Lawal said it is now at an all time low of 800,000 barrels per day.
In his words: “The statement is correct.
“That is my statement reported by the media that we cannot guarantee the implementation of constituency projects in the 2016 budget.
“As a government, constituency projects are championed by members of the National Assembly.
“Like the legislature, members of the executive are politicians who canvassed for votes.
“Lawmakers are aware that oil production had dwindled to about 800,000 barrels per day.
“This has led to the inability of government to finance the budget.
“It is the duty of government to prepare the minds of Nigerians ahead that there will be challenges in implementing the budget.
“Government based its principle on zero budgeting this year.
“Funds will be released to finance key projects in line with the implementation plans of the government.
“I will explain why it will be hard for the government to implement the budget.
“I spoke with the Minister of Budget this morning and I asked him the revenue base of the government.
“We are now receiving about 50 to 60 earnings from what we projected.
“Some MDAs might find it impossible to implement projects appropriated in their budgets.
“We have to re-prioritize.
“I like us to understand that this is the background upon which I made that statement.
“That statement may not be palatable to the legislature or the citizens.
“But MDAs are facing challenges in implementing the budget based on the funds available to them.”
However, at the beginning, The Eagle Online reported that Lawal had an altercation with the members of the joint committee.
He told the committee: “I only saw this letter this morning.
“I thought it was going to be Wednesday next week.
“I wanted my permanent secretary to write to request for another date, knowing that Wednesdays are for Federal Executive Council meetings.
“You gave me very short time to prepare.
“Taking together the lateness of the letter and the threat at the bottom of it shows that it was not done in good faith.
“We should respect each other and give each other the time to appear.”
Lawal was immediately countered by the Chairman of the Senate Committee on Ethics, Privileges and Public Petitions, Senator Samuel Anyanwu.
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