DG BUDGET OFFICE, BRIGHT OKOGU
SAN FRANCISCO, September 27, (THEWILL) – The Director General of the Budget Office, Bright Okogu, said on Friday that the implementation of the 2013 budget is impeded not only by shortfall from oil revenue, but that of non-oil revenue.
Okogu disclosed this to members of the House of Representatives Committee on Appropriation who were on oversight in his office.
He explained that progress recorded in the agricultural sector has adversely affected revenue accruing to the Federal Government.
According to him, “The recent increase in import levies and duties on importation of rice to discourage importation and boost production of rice locally which has seen an increase in production from between 400 to 500, 000 tonnes to 1.3million tonnes has its reverse side which has hit our revenue because people are not importing and therefore, the duty we have on this has been lowered”, he explained.
The Director General warned that Nigeria may soon face bigger financial challenges if oil prices continue to decline.
“Price of Bonny Light Crude is down from $118.81 per barrel in February 2013 to $112.1 per barrel as at 23, September 2013. Nigeria will run current account deficit if oil prices drop below $86 per barrel,” he said.
He noted that insecurity was one of the major setbacks to revenue generation strength of the Federal Government as he explained that agencies like the Federal Inland Revenue Service had informed his office that they had not been able to collect revenue from designated areas where there is conflict.
“Disruptions to Nigeria’s oil production and losses of almost 400,000 bpd was recorded in the first half of the year. Insecurity in some parts of the country continues to affect non-oil revenue generation/collection.
“FIRS has told us that they have not been able to collect tax in some areas of their jurisdiction because of insecurity,”he added..
While giving an assessment on the progress of constituency projects, he said they are at an advanced stage with N70 billion of the NI00 billion budgeted for 2013 released and an additional N25 billion released for third quarter.
On the 2013 budget implementation, he said: “Capital releases are at N618 billion and fully cash backed out of which N475 billion utilised. Based on releases, utilisation rates as at the end of July is 76.83 percent with same rate cash backing percentage.”
He also disclosed that the 2014 budget would be lower than N5 trillion mark, saying it is currently pegged at N4.6 trillion.
Earlier, the chairman of the Committee on Appropriation, Hon John Enoh, said they came to get a brief on the level of implementation of the 2013 budget for their information and for purposes of clarification when oversight reports from committees are being debated on the floor of the House.
“The Budget Office is the starting point because many ministries, departments and agencies will not spend money if it is not released by your office. We want to know the level of releases made in the three quarters, cash backed releases, budget performance, with emphasis on capital releases,” he said.
By Saint Mugaga, Abuja
