Pres. Buhari reportedly requests withdrawal of 2016 budget to make changes

The Nigerian President Muhammadu Buhari has written to parliament requesting the withdrawal of the 2016 budget in order to make changes, sources at the presidency and Senate said on Sunday.

[pro_ad_display_adzone id=”60438″]

Buhari unveiled the budget for Africa’s biggest economy in December, which included a tripling of capital expenditure, as the continent’s top oil exporter tries to overcome its worst economic crisis in years caused by the fall in crude prices.

The president said spending would be 6.08 trillion naira and the deficit would double to 2.2 trillion naira ($11 billion) under his administration’s plans.

With Brent crude, which gives Nigeria around 95 percent of its foreign earnings, falling to $30 a barrel for the first time in 12 years, the naira has dropped to record lows against the dollar on the parallel market amid dwindling FX reserves.

The 2016 budget assumed an oil price of $38 per barrel, whereas lawmakers passed last year’s budget at $53 a barrel.

“Mr president has written to the Senate and the House of Representatives to withdraw the 2016 budget to enable him to affect some amendments following the further dwindling price of oil among other areas,” said a presidency source, speaking on condition of anonymity.

Buhari’s spokesmen, who have travelled with the president to the United Arab Emirates for the World Future Energy Summit, were unavailable for comment.

A source at the upper house of parliament, the Senate, said Buhari had written to the National Assembly, which consists of both houses, to request the withdrawal of this year’s budget.

“The Senate received the letter on Saturday but it does not specify what is to be corrected,” said the source, who wished to remain unnamed.

Ita Enang, the president’s senior special assistant on National Assembly matters, on Sunday issued a statement confirming that a message had been sent.

“Mr President has sent a communication to the National Assembly on the 2016 Budget,” said Enang. “The content is as will be read on the floor in plenary.” He added that the reading would take place on Tuesday.

Last week the naira NGN=D1 – pegged at around 198 to the dollar on the official interbank market – slid to a record low of 305 on the parallel market, fuelling speculation that Nigeria will soon have to devalue it currency. And stocks posted their biggest fall in eight years.

Senate members have summoned Central Bank Governor Godwin Emefiele to explain the naira’s plunge on Tuesday.

Advertisements

10 Comments

  1. Let us all be realistic,crude oil price is falling more and more,it’s only wise for the government to make amends to reflect the reality otherwise,we will all end up groaning under the weight of heavy deficit.

  2. Confusionists are really in charge now. May God help us as a nation. Sometimes, I wish the UK should come back and continue day to day running of this failing big for nothing black natiion.

  3. Those who react against the President’s application for withdrawal of the budget statements are obviously ignorant of the world economy status. If Saudi Arabia who is the world’s largest oil producer is crying under a heavy budget deficit bcos of the oil doom, who is Nigeria in the oil economy? If the whole world govt could be gathering now at UAE for Energy Summit just to discuss a way out for economy without oil, then it is a sign that the whole world is suffering it. The only problem we are facing now is effect of greed and curroption of our past government! If we had good people leading us since the inception of Abacha era of oil boom to GEJ, Nigeria could have diversified economy such that oil doom will not affect us today. Am living in Dubai and i have eye witness of what is happening here. The govt of UAE used their oil revenue to diversify their economy such that only 30% of 2015 budget came from oil revenue! This was when Nigeria govt allocated 75% of 2015 budget to oil revenue! Just last week, the govt of UAE issued a public statement on a further increament of VAT to 5%. The statement read in part explained that the purpose is to ensure that at least 95% of 2016 budget would derive from non oil sector. That means that the businesses in the country would be financing the entire govt budget! With that,the govt can comfortably lock their oil exportation for good! Even though price of commodity would be rising globally, price for the petroleum products would be decresing in UAE! fantastic gvt! For PMB, withdrawal and amendment of the budget is okey but the question is how is that going to boost Nigeria non-oil economy? otherwise,we will still later talk of supplimentary budget before the year runs out! May God help Nigeria!

  4. Kevin, good and supportive explanation. It is NOW or never, Nigeria MUST diversified in other resources. I acknowledged what you have witnessed

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.