2023 Budget: Why FG's N20.5 trillion proposal can’t work — Senator

Rivers State Senator, Betty Apiafi, says the 2023 budget proposed by President Muhammadu Buhari cannot be implemented because the parameters used by the government are wrong.

Ms Apiafi stated this while speaking to journalists after the presentation of the budget by Mr Buhari on Friday.

The president presented a budget of N20.5 trillion for the 2023 fiscal year.

Ms Apiafi, a PDP senator representing Rivers West, lamented that the government allowed thieves to deplete the main resources of the federation and that a large chunk of the budget will be financed by borrowing, as a result of the deficit.

“What is the government doing, allowing its revenue to be stolen—allowing insecurity to take over your government? What are you doing? Rather than giving us two scenarios of fuel subsidy, why not increase the revenue base of the nation?” she said.

Noting that the economy is on a fiscal cliff edge, the lawmaker said the executive arm must rework the parameters to present another budget.

“We have a major problem. I think the government used the wrong parameters for this budget. They need to re-work this budget. This budget is not going to work. It is un-implementable because we are still going to borrow. But fuel subsidy is going to take a large chunk of the budget,” she stated.

She suggested that the government must stop oil theft to make the budget work.

The N20.51 trillion budget is based on a $70 barrel per day oil benchmark and a daily oil production estimate of 1.69 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day).

Other parameters are the exchange rate of N435.57 per US Dollar; projected GDP growth rate of 3.75 percent and 17.16 percent inflation rate.

Oil theftMr Buhari had acknowledged the impact of oil theft on the performance of the 2022 budget during his speech.

The president had said, “oil revenue was below target due to significant oil production shortfalls.”

He disclosed that relevant agencies are putting in place “measures to curb the incidence of pipeline vandalism and crude oil theft in order to meet our crude oil production quota.”

READ ALSO: NNPC launches app to check crude oil theftThe Senate President, Ahmad Lawan, and the Speaker of the House of Representatives, Femi Gbajabiamila, highlighted the threat posed by oil thieves in their respective speeches during the budget presentation.

Mr Gbajabiamila had said there is disquiet in the House over the menace of oil theft in the country.

We can’t continue like this — APC lawmakerThe Deputy Chief of Whip, Nkeiruka Onyejeocha (APC, Abia), while reacting to the budget, said the current fiscal climate requires a change of approach from everyone.

The lawmaker, however, said the current economic situation is not peculiar to Nigeria, as she noted that all over the world, countries are struggling.

“All of us have to work hard. Everyone has to make sure we tighten our belts, all over the world, things are not looking good, it is not just in Nigeria.

“That speaks to our attitude, we should be able to account for all the funds appropriated for and if we tell ourselves the truth, deal with the issues of subsidy, once that is sorted out, Nigeria will have more money,” he said.

Also reacting to the budget, the spokesperson of the House, Ben Kalu (APC, Abia), in his reaction to the budget proposal, said Nigerians must look toward the local content component of the budget.

He assured Nigerians that the lawmakers will ensure that the local content component is given the needed priority. He added that local content has the capacity to stimulate the economy.

“It is our duty, going by mandate, to scrutinise the budget and make it reflect the economic realities of our nation. To make sure this budget carries along local content so that our money will stay here.

“That way, it will stimulate the economy and make sure that local industry has new blood to be able to survive because that is the only way we will survive, as a nation,” he said.

All standing committees of the two chambers are expected to scrutinise the proposal in the next few weeks.