Atiku attacks Buhari govt over ‘mere’ 0.6% reduction in 2020 budget amid COVID-19 effects

Former Vice President Atiku Abubakar has attacked President Muhammadu Buhari’s administration for slashing the 2020 budget by mere 0.6 per cent.

Following the effects of the COVID-19 pandemic, which has seen a sharp drop in the price of crude oil, Buhari’s government announced a reduction of the 2020 budget from ₦10.594 trillion to ₦10.523 trillion.

But in a statement on Thursday, Atiku wondered why the government would be making a mere 0.6 per cent reduction from the budget.

He said ₦71 billion, which the 0.6 per cent reduction represented, was “grossly insufficient and betrays the fact that we have lost touch with the current realities in the global political economy.”

The statement read, “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 is 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.”

Atiku said Buhari’s administration should discipline itself financially 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. The ₦27 billion budget for the renovation of the National Assembly has to go. The massive budget to run both the Presidency and the legislature has to be downsized. The budget for purchasing luxury cars for the President, his Vice, and other political office holders must be jettisoned. 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,” he said.

READ ALSO: ASO ROCK WATCH: Now that Buhari is begging for more COVID-19 funds. 2 other talking points

According to Atiku, “any budget slash that is less than 25 per cent will not be in the interest of Nigeria. And beyond a budget slash, Nigeria needs a budget realignment, to redirect expenditure away from running a massive bureaucracy, into social development sectors like education, infrastructure, and above all, healthcare. We must invest in the goose that lays the golden egg – the Nigerian people.

“These are the types of sacrifices that we need in a time of crisis. We do not need empty gestures that will lead to empty treasuries. In times of austerity, no nation, not the least a mono-product economy, such as ours, should be living in luxury at a leadership level.”

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now