The Minister of Budget and Planning, Sen. Udoma Udoma, on Thursday said 55 per cent of the 2016 revenue projection had been achieved as at the first quarter of the year.
Udoma who made the disclosure when he appeared before the Senate Committee on Appropriation to give a breakdown of 2016 budget implementation, said the releases cut across personnel, overhead and capital allocation to the Ministries, Departments and Agencies (MDAs), of government.
“We are not achieving the targets set for revenue generating agencies in the country. If we don’t get the revenue we cannot meet the expenditure target.”
He said N1.7 trillion was budgeted and N871 billion released as at April, and that is almost 50 per cent release.
“For overhead, N218 billion was budgeted and N52 billion was released, amounting to 25 per cent release and this is because of the low performance of revenue generation.
“For capital, N1.5 trillion was budgeted and N235 billion was released, amounting to 15 per cent release.
“The reason for the low level of capital releases is that right now because of the procurement procedure no new project has reached the stage for capital release.
“Over all, for the first quarter, we are running at about 55 per cent in terms of revenue expectations,” he said.
The minister blamed the activities of Niger Delta Avengers for the dwindling revenue generation.
He said the activities of the group had adversely affected oil production, which was the major revenue generation source for the country.
“We have not been able to realise the 2.2 million barrels per day that was projected in the 2016 Budget. Oil production at a point dropped to below one million barrel per day.
He also attributed the low revenue base to low revenue generation from revenue generating agencies like the Nigerian Customs Service (NCS) and Federal Inland Revenue Service (FIRS).
Udoma expressed optimism that the overall revenue projection would improve before the end of year with recovery of oil revenue and increased revenue from NCS and FIRS.
On the 2017 budget, the minister said it would be transmitted to the National Assembly in October.
He stressed the need for improved budgetary allocation for the Integrated Payroll and Personnel Information System (IPPIS), to extend the programme to all agencies of government.
He said the extension would help to check ghost workers in the country.
On Treasury Single Account (TSA), the minister said it was good device to mop up money for the nation.
He, however, said the expectations of the device had not been realised, adding that there was need for agencies to collaborate to make it effective.
The Chairman of the Senate Committee of Appropriation, Danjuma Goje, said the budget performance as at first quarter of the year was impressive in spite of dwindling revenue.
“You have done well; the Federal Government is on course in paying salaries, unlike states.
“The only problem is capital release, which is understandable. The important thing is that we needed to let Nigerians know what the government is doing.”
He further commended the minister for his comment on the importance of constituency projects to Nigerians.
“We are concerned that the Secretary to the Government of the Federation, Babachir Lawal, has singled out constituency projects for non-implementation due to lack of funds.
“We feel there is more to it. We are uncomfortable and you know the importance attached to constituency projects,” he said.
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