The Federal Government has said it will not revert its earlier decision to deregulate the petroleum industry.
Presenting the 2021 Budget proposal of N13.08 trillion to the Joint Session of the National Assembly, President Muhammadu Buhari admitted that the Nigerian economy could slide into another round of recession unless the country takes very decisive measures.
As part of the measures, Buhari subtly warned the Nigeria Labour Congress, NLC, and indeed any other group kicking against its deregulation policy that the measure has come to stay.
The Academic Staff Union of Uuniversities, ASUU, had always kicked against the IPPIS arrangement on grounds that it violates the principle of the autonomy of the tertiary Institutions.
Buhari also announced reforms in the power sector, stressing the need for the implementation of a service based electricity tariff.
With these reforms, Buhari is optimistic that Nigeria should be able to free up funds for critical sectors.
The President hopes to open up more revenue opportunities in the oil sector with the passage of the Petroleum Industry Bill, PIB.
What Buhari presented was a budget of “economic recovery and resilience” as Nigeria battles to emerge from the devastating impact of Covid-19 that made it extremely difficult for the country to implement its budget for 2020.
Buhari was visibly worried about Nigeria’s debt service put at N3.12 trillion and was forced to pause and to read it out a second time to the lawmakers.
Even more troubling for President Buhari is the deficit of N5.2 trillion, a 0.04% growth in the last quarter of 2020, an inflation rate of N11%, and a borrowing plan of N4.28 trillion from a revenue stream estimated at N7.89 trillion.
According to Buhari, the 2021 budget proposal is projected on an oil benchmark price of $40 per barrel, representing an increase of $18 from the projection for 2020.
Nigeria, however, devalued its currency- the Naira by at least N90 against the US dollar from N360 last year to N379 in 2021.
A breakdown of the budget showed that the Ministry of Defence received the lion share of the budgetary allocation with N840.56 billion, followed by the Ministry of Education with N545.1 billion, and the Ministry of Police Affairs taking N400 billion.
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In a dramatic fashion, the President paused and coughed for the second time before announcing the allocation of N128 billion for the National Assembly. It’s the exact amount approved for 2020.
(Editor: Nkoli Omhoudu)
