Nigeria to cut down N10.59 trillion 2020 budget over fall in oil prices

82,089FansLike
2,966FollowersFollow
2,700SubscribersSubscribe
82,089FansLike
3,122FollowersFollow
2,700SubscribersSubscribe

Updated: March 7, 2021

The Nigerian Senate on Tuesday said a cut to the N10.594 trillion budget for 2020 passed by the National Assembly on December 5, 2019, was “inevitable” following the crash in crude oil prices.

The resolution was reached sequel to the adoption of the recommendations of the report of the Joint Committee on Finance; Appropriations; National Planning and Economic Affairs; and Petroleum Resources (Upstream).

[read_more id="2" more="Read full article" less="Read less"]

Accordingly, the Upper chamber, while adopting the recommendations of the Joint Committee during plenary, resolved that the National Assembly, upon agreement with the Executive arm of Government, would review downward the Appropriation Act 2020.

The Senate, while urging Revenue generating agencies to live up to their responsibility in line with the Fiscal Responsibility Act passed by the National Assembly, said that both chambers will continue to engage the executive on a regular basis in line with their mandate.

Chairman of the Joint Committee, Senator Olamilekan Adeola (APC – Lagos West), while presenting the report, disclosed that the panel in reaching the proposed recommendations took into consideration the Cost of production of a barrel of crude oil compared with the other counterparts in the Petroleum Producing Countries; the need to prioritise both the Social and the Real Sector of the economy looking at their importance to the overall benefit of Nigeria; Loss of revenue as a result of Gas flaring which runs into several billions of dollars; Devaluation of Naira; and Removal of oil subsidy.

According to the lawmaker, “the short term solution is to address the sharp drop in the crude oil price which is creating difficulties in funding the 2020 Appropriation Act as passed by the National Assembly.

“The long term solution discussed is the need to consider and pass the Petroleum Industry Bill (PIB), which is yet to laid before the National Assembly.

“This will address the issue of cost of production and Gas flaring where the country’s resources is going down the drain and other issues that might affect the petroleum sector.”

[/read_more]

WhatsApp Image 2020 12 12 at 17.28.57
Today News Africahttps://todaynewsafrica.com
Today News Africa is a US-based international news organization focused on US-Africa policy and breaking news. Our goal is to provide truthful and exclusive stories to a diverse audience across North America and the African Continent. Subscribe to our news page at https://todaynewsafrica.com/ and Follow us on Twitter @todaynewsafrica

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

TRENDING

Nobel Peace Prize winning Prime Minister of Ethiopia Abiy Ahmed under fire for ethnic cleansing and human rights abuses

Ethiopian Prime Minister Abiy Ahmed was awarded the 2019 Nobel Peace Prize for “his efforts to achieve peace and international cooperation.” However, he has recently become the subject of intense scrutiny after multiple reports have found him responsible for leading violent ethnic cleansing in the Tigray Region.In the entire history of the Nobel Peace Prize, which has been around for well over a century, the...

Stay connected

[/read_more]

[read_more id="2" more="Read full article" less="Read less"]

error: Alert: Content is protected !!
Share
Tweet
Reddit
Pocket
Share
More