The Senate Joint Committee set up to look into the impact of Coronavirus outbreak on oil prices submitted its report on Tuesday with a recommendation that “it has become inevitable to slash the Appropriation Bill (2020 budget) as passed by the National Assembly in December, last year”.
The Senate had last week mandated its Joint Committee, comprising of Committees on Finance, Budget and National Planning, and Petroleum Upstream to examine the situation.
The Committee led by Senator Solomon Olamilekan held meeting with the Minister of Finance, Budget and National Planning in attendance before arriving at this “interim report”, calling for a downward review of the 2020 budget.
Also read: Senate Minority Leader Says Nigeria drifting in wrong direction
Nigeria has a budget size of N10.59 trillion for the 2020 fiscal year.
The Senate recommended that the modalities for “amending the Appropriation Act shall be agreed to by the Ministry of Finance, Budget and National Planning and the Joint Committee.
This was as lawmakers expressed concern on where the deductions will be made in the budget.
In his contribution, Senator Suleiman Abdulkwari cautioned strongly against cutting down on workers salaries; arguing that in the short run, all obligations regarding personnel cost must be fully implemented.
He however advised that the slash should come from overheads cost and capital releases.
This was as Senator Ibrahim Oloriegbe called for support for manufacturing companies and the travel industry that have been seriously hit.
The Senate further resolved that Nigeria should look beyond oil and begin to show greater commitment to agriculture.
With the sharp drop in the price of crude oil, the option available to Nigeria is to immediately shore up revenue in other areas.
To this end, the upper legislative chamber called on all the revenue generating agencies to be alive to their responsibilities.
Even when the Federal Government has begun the implementation of mainly the personnel component of the 2020 budget; Senate was concerned the impact of Coronavirus outbreak on the budget will become quite visible by May this year.
Meanwhile, coming under Order 43, the Chairman Senate Committee on Health, Ibrahim Oloriegbe had earlier draw attention to the need for government to come forward with preventive control measures including travel restrictions on epicentres of Coronavirus.
Responding, the President of the Senate, Ahmad Lawan decried the lack of testing centres in the South-East and the Northern parts of the country.
(Editor: Terverr Tyav)
