By Racheal Ishaya
Abuja – The Federal Government said low oil production due to pipeline vandalism and militancy activities as well as low global crude oil prices affected the implementation of the 2016 budget.
The Minister of Budget and National Planning, Sen. Udo Udoma, said this on Monday in Abuja while presenting an overview of the 2017 budget proposal tagged “Budget of Recovery and Growth’’.
Udoma said that the 2016 budget, which was predicated on oil production of 2.2 million barrels per day, selling at 38 dollars per barrel at an exchange rate of N197 to a dollar, fell short of all revenue projections.
He said that although at some point within the year, global crude oil prices exceeded government’s projection, the insistent disruption of crude oil production by militants impacted negatively on output.
“The Federal Government’s 2016 revenues have been low because of the sharp decline in oil production.
“In particular, the revenue target for January to September 2016 was N2.8 trillion as against N2.2 trillion realised during the period.
“The projected independent revenue was N1.1 trillion as against N0.2 trillion realised during the period.
“The projected revenue for Custom was N0.3 trillion as against N0.2 trillion realised.
“The projected non-oil tax receipts for the first to third quarter of 2016 is N0.8 trillion and only N0.5 trillion was realised,” he said.
He said that in spite of this, the Federal Government was able to achieve a capital expenditure of N753.6 billion as at October 2016.
The News Agency of Nigeria recalled that the Ministry of Power, Works and Housing Power got the largest chunk of N209 billion while the Petroleum Ministry got the least amount of N2 billion.
The Defence Ministry received N69 billion; Transport, N30 billion; Agriculture N29 billion and Water Resources got N25 billion.
The Interior Ministry got N21 billion, Ministry of Health received N18 billion, Education, N16.7 billion while the Ministry of Niger Delta got N8 billion.
The Ministries of Science and Technology got N6.6 billion while Mines and Steel got N3 billion.