The Federal Government has admitted it is facing challenges in terms of revenue to finance the 2016 budget. It said that about N331.58bn has so far been released for execution of some capital projects, while another N100bn is expected.
Minister of Budget and National Planning, Udo Udo Udoma, made this disclosure at a town hall meeting organised by the Alumini Association of the National Institute for Policy and Strategic Studies, in collaboration with the Federal Ministry of Information and Culture in Abuja.
Udoma stated that the 2016 budget was projected on 2.2 million barrels per day. He regretted that oil production has been disrupted, resulting in revenue reduction.
He explained that because oil is still the main source of foreign exchange for the country, the decline in oil price has affected everything including non-oil revenue.
“For the diversification of the economy, we looked at measures to achieve self-sufficiency and become a net exporter for a number of agric produce. The benchmark is that by 2018, we would become self-sufficient in rice and by 2019, self-sufficient in wheat, utilising 5000 hectares of arable land in the River Basin Development Authority to achieve this,” he said.
The Minister of Finance, Kemi Adeosun, who disclosed that N100bn is ready for release, insisted the amount is not enough.
“We need to invest on capital projects. We must attract private investment and invest in the agric and solid mineral sectors. We spend 70 per cent importing. If rail, power and roads are working, we can compete. We need a fundamental change; the diversification plan is not rhetoric,” she stressed.
