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Falling oil prices, militants cause N1.064trn shortfall in Nigeria’s budget projections

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More loans will risk Nigeria’s economic growth, experts warn

The Federal Government, on Monday, revealed that its revenue projection in the 2016 budget fell by a whopping N1.064 trillion in the first half of the year.

The shortfall, which is about 55.2% of its projection, was blamed on the falling prices of crude oil in the international market and the renewed militancy in the Niger Delta.

This was disclosed by the Minister of National Planning  Sen. Udoma Udo Udoma, at the 2017-2019 Medium Term Expenditure Framework and Fiscal Strategy  consultations in Abuja.

He said: “Overall, the total revenue inflow was short of the budget by N 1, 064.91 billion (or 55.2%) as at June 2016.

Read also: Don’t pay new electricity tariff, NLC tells Nigerians

“The shortfall was augmented by domestic borrowing amounting to N 600 billion (about 33% of approved borrowing of N 1, 818.87 billion).

“The 2016 budget performance is reflective of the low revenue out turns attributable to the global and domestic developments earlier highlighted.

“Oil revenues fell significantly in the second quarter compared to the first quarter as a result of increased oil pipeline vandalism and production shut-ins.

“Non – oil revenues also declined compared with forecasts in the budget due to slow- down in economic activities and the acute shortage of foreign exchange,” Sen. Udoma said.

According to Senator Udoma, his team was working hard to ensure an early presentation of the 2017 budget to the National Assembly.

By Timothy Enietan-Matthews

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