Low oil prices won’t affect 2016 budget, says Udoma

Udoma Udo Udoma, minister of budget and national planning, says the 2016 budget is achievable in spite of falling oil price.

Charles Dafe, director of information in the ministry, quoted Udoma as making the statement in Abuja on Sunday when a delegation from the African Development Bank (ADB) visited the ministry.

Dafe said the minister told the AFDB delegation that ongoing reform targeted at diversifying the revenue base of the country would guarantee the achievement of the budget.

“Our budget is achievable; we have ongoing reforms targeted at diversifying our revenue base away from single oil commodity economy,” Udoma reportedly said.

“Our minister of state for petroleum, Ibe Kachikwu, is assiduously applying innovative financing in the oil sector to address any likely revenue gap from our projected oil revenue.

“Plugging leakages through zero tolerance to corruption, application of sound public financial management and improved revenue collection system are reforms targeted to achieve the budget.”

Dafe said Udoma told his guests that the ministry would proactively plan, advice and monitor all matters relating to national development, adding that it would also ensure that vital development policies were properly implemented by all stakeholders.

He explained that 30 per cent of the budget allocated to capital projects was critical for the stimulation of economic development.

Zainab Ahmed, minister of state for budget and national planning, was quoted as saying that naira depreciation, falling oil prices and infrastructure decay were challenges facing the country.

“Substantial monies from recoveries of looted funds were not factored in as sources of revenue and as such would also be utilized for our development projects,” she reportedly said.

“We are counting on assistance from other developmental partners like the African Development Bank to access N1.8 trillion loans needed for Nigeria infrastructural development.

“Assistance is also required in our 2016-2020 medium Term Expenditure Frameworks and the Nation’s Sustainable Development Goal.”

Ousmane Dore, country director of the AFDB, commended the 2016 budget, describing it as “good and ambitious”.

He said the bank would assist Nigeria to achieve its efforts in poverty reduction.

“Nigeria is having an impressive and a better economic direction that would attract foreign investors,” he said.