Moses Ofodeme
Former Vice President, Atiku Abubakar has reacted to the revised 2020 national budget by the federal government after it slashed budget by a mere 0.6 per cent from ₦10.594 trillion to ₦10.523 trillion.
In a statement issued on Thursday, May 15, Atiku explained that the reduction represented only the sum of ₦71 billion, stressing that politics aside; the sum “is grossly insufficient and betrays the fact that we have lost touch with the current realities in the global political economy.”
According to the statement, “For the avoidance of doubt, when this budget was presented to the National Assembly on Tuesday, October 8, 2019; it was predicated on a projection that our nation would generate crude oil production of 2.18 million barrels a day, at an expected oil price of $57 per barrel.
“Today, that is no longer the case. Both our production and the price of oil have been severely affected by the coronavirus pandemic; to the extent that we have unsold vessels, and our income has tanked by more than 50%.
“Given that this is the case, how can anyone justify a reduction in expenditure of just 0.6%? We cannot be the only nation bucking the trend?
“Saudi Arabia, a nation with a much stronger production capacity than ours and with a larger global market share, as well as foreign reserves that are 12 times ours, has slashed her budget by almost 30%. Ditto for other oil economies!
“Nigeria cannot make up for the loss of expected revenue by taking out more loans and issuing out more bonds. Debt will be the death of our economy and bonds will put our people in bondage.
“The best way out of this economic quagmire is to reduce our expenditure. And a 0.6% reduction is no reduction. It is only window dressing.”
Accordingly, Atiku tasked the government to let go of financial indiscipline by focusing on the essentials necessary for purposeful governance.
“My counsel to the federal government of Nigeria is this: put Nigerians first and cut your coat, not according to your size, but according to your cloth.
“Realistically, slash the budget. Every pork barrel has to go. The billions budgeted for the travels and feeding of the President and Vice President has to be reduced.
“Leave the salaries of civil servants alone, but reduce the salaries of political appointees. Sell eight or nine of the jets in the Presidential Air Fleet.”