SGF says ‘difficult to fund budget’ as oil output falls to 900,000bpd – The Cable

Babachir Lawal, the secretary to the government of the federation, on Wednesday said the federal government, is finding it difficult to fund the 2016 budget.

While appearing before the joint senate committees on ethics, appropriation and finance, Lawal explained that there is a fall in oil production 800,000bpd – compared to the budgeted 2.3mbpd.

He said it was for this reason, he earlier said the federal government will not be funding constituency projects of the lawmakers, except for key projects designed by the executive which will have meaningful impact on Nigerians.

Lawal also ‎blamed the drop in revenue on the activities of Niger Delta Avengers militants.

“The statement is correct. That is my statement, we cannot guarantee the implementation of constituency projects in the 2016 budget,” he said.

“Lawmakers are aware that oil barrels had dwindled to about 800,000 per day. This has led to the inability of government to finance the budget. It is the duty of government to prepare the minds of Nigerians ahead that there will be challenges in implementing the budget.

“As a government, constituency projects are championed by members of the National Assembly. Like the legislature, members of the executive are politicians who canvassed for votes.

“Government based its principle on zero budgeting this year. Funds will be released to finance key projects in line with the implementation plans of the government.”

Ibe Kachikwu, minister of state for petroleum resources, recently put production at 1.9mbpd, a figure disputed by industry insiders.

Source: https://www.thecable.ng/sgf-says-difficult-fund-budget-oil-output-falls-900000bpd