Friday, May 27, 2022

Funding 2021 budget with oil revenue will be difficult — Expert

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Jaafar Jaafar
Jaafar Jaafar is a graduate of Mass Communication from Bayero University, Kano. He was a reporter at Daily Trust, an assistant editor at Premium Times and now the editor-in-chief of Daily Nigerian.
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Wumi Iledare, a professor of Petroleum Economics, says it will be difficult to fund 2021 budget with oil revenue going by the development in the global oil market.

Mr Iledare made this known in an interview with the News Agency of Nigeria on Sunday in Abuja.

President Muhammadu Buhari had on October 8 presented  N13.08 trillion 2021 appropriation bill to the joint session of the National Assembly for passage.

The N13.08 trillion bill is predicated on crude oil benchmark price of 40 dollars per barrel at 1.86 million daily oil output.

“Don’t expect the budget to be funded by revenue from oil or hydrocarbons extraction.

“That is impossible under the current global economic projections. Moreover, a great proportion of oil production is not accessible to the government for its budget funding,” he said.

Mr Iledare said that there were possibilities that budget might be increased from N13.08 trillion to about N15 trillion.

He said that non-oil sector might be the target if some stimulus packages were part of the budget.

He said that government should look into domestic funding and advised against foreign loan to fund wages and salaries.

“One can also hope that a bulk of the funding will be dedicated to capital projects,” he said. (NAN)

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