2016 Budget Will Be Funded From Sale Of National Oil Assets –...

2016 Budget Will Be Funded From Sale Of National Oil Assets – FG

By Maximus Chukwuka | Staff Reporter on September 26, 2016
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L-R: Minister of budget and national planning, Senator Udoma Udo Udoma, minister of state for budget and national planning Zainab Ahmad, and permanent secretary of the ministry, Mrs. Fatima Mede during the assumption of office by the new ministers in Abuja on Thursday, November 12, 2015. | NAN

Udo Udoma, Nigeria’s minister of Budget and National Planning, on Saturday September 24, 2016 said that the proceeds from the sale of some of the country’s national assets would be used to fund the expenditure of government as contained in the 2016 budget.

The minister disclosed this in a statement issued by his media adviser, Mr. Akpandem James, who explained that the government had lost almost half of its expected revenue this year.

He explained that the unfortunate scenario was what prompted the Economic Management Team to urgently work out a fiscal stimulus plan to generate large funds to be injected into the economy.

The funds, according to him would be injected through proceeds of asset sales, advance payment for license rounds, infrastructure concessioning, use of recovered funds, among others, to reduce the funding gap.

He said the primary objective of government’s fiscal stimulus plan is not to sell off all major critical national assets,but to source immediate funds to reflate the economy to the path of recovery.

There are three months left in 2016. So, it is unclear what specific items in the 2016 budget would be funded in the sale of national oil assets of which the crown jewel is the country’s stake in the Nigerian Liquified Natural Gas Company, NLNG.

 

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