The Minister of Budget and National Planning, Udoma Udo Udoma has given a strong assurance that the decline in oil prices will not derail Nigeria’s 2016 budget.
Prices on the world market for oil have fallen rapidly since middle of 2014. Measured in US dollars, the price has fallen by approximately 50 per cent since December.
Udoma, made this revelation during a visit with a top delegation from the African Development Bank to the Ministry to discuss critical areas which Nigeria requires assistance from the bank.
While responding to a question about the possibility of Nigeria funding it’s N6.08 trillion budget in the face of oil price drop, Udo Udoma answered that the budget is achievable as there are ongoing reforms targeted at diversifying Nigeria’s revenue base from the single oil commodity economy.
He added that the Minister for Petroleum, Ibe Kachukwu is assiduously applying innovative financing in the oil sector to address likely revenue gaps from the projected and anticipated N820 billion to be derived from oil.
Udo Udoma further mentioned other reforms to include – the plugging of leakages through zero tolerance for corruption, application of a sound public financial collection system to provide a wide coverage for VAT and personal income as well as other taxes to be collected.
The minister of finance Mrs Kemi Adeosun also on Monday said that the federal government as part of the plans to fund the 2016 budget which is currently undergoing the approval process of the National Assembly, has indicated an intention to borrow N1.8trillion principally for investment in capital projects to stimulate the economy.
She also disclosed that Nigeria is exploring the options of multi-lateral agencies like the World Bank and AFDB and export credit agencies such as China Exim Bank due to their concessionary interest rates.
–Per second news
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