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Oil price crash: N’Assembly, Executive to cut down N10.59trn budget for 2020

The Senate, on Tuesday, has said that a cut to the N10.594 trillion budget for 2020 passed by the National Assembly on December 5, 2019, is “inevitable” in view of the crash in crude oil price internationally.

The resolution was reached sequel to the adoption of the recommendations of the report of the Joint Committee on Finance; Appropriations; National Planning and Economic Affairs; and Petroleum Resources (Upstream).

Accordingly, the Upper chamber, while adopting the recommendations of the Joint Committee during plenary, resolved that the National Assembly, upon agreement with the Executive arm of Government, would review downward the Appropriation Act 2020.

The Senate, while urging Revenue generating agencies to live up to their responsibility in line with the Fiscal Responsibility Act passed by the National Assembly, said that both chambers will continue to engage the executive on a regular basis in line with their mandate.

Chairman of the Joint Committee, Senator Olamilekan Adeola (APC – Lagos West), while presenting the report, disclosed that the panel in reaching the proposed recommendations took into consideration the Cost of production of a barrel of crude oil compared with the other counterparts in the Petroleum Producing Countries; the need to prioritise both the Social and the Real Sector of the economy looking at their importance to the overall benefit of Nigeria; Loss of revenue as a result of Gas flaring which runs into several billions of dollars; Devaluation of Naira; and Removal of oil subsidy.

According to the lawmaker, “the short term solution is to address the sharp drop in the crude oil price which is creating difficulties in funding the 2020 Appropriation Act as passed by the National Assembly.

“The long term solution discussed is the need to consider and pass the Petroleum Industry Bill (PIB), which is yet to laid before the National Assembly.

“This will address the issue of cost of production and Gas flaring where the country’s resources is going down the drain and other issues that might affect the petroleum sector.”

Sunday Olatunji
Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93. Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism. He had done many courses in communication, including the EU-BBC Editing Course in 2002. Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013). He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers. He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 - 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 - 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor. Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye - DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography - AGAINST ALL ODDS. There are many other books in the works under his pen.
http://newstide247.com
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