The Federal government has asked Nigerians to prepare for more belt-tightening conditions as it is set to apply the strict economic policies being put in place by the Muhammadu Buhari led administration.
The government also vowed to strictly monitor expenditure of all Ministries, Department and Agencies, MDAs to avoid wastes.
Minister for Budget and National Planning, Udoma Udo Udoma, said in Abuja on Monday that part of the measures planned For implementation under the 2016 budget is the reduction of Personnnel cost from N1.8 trillion to N100 billion as part of moves to reduce expenditure and save cost.
Reduction in personnel costs mean one or both of the two things: sack of some workers or cut of the salaries of workers or l
Udo Udoma said an excess of N1 trillion was spent on fuel subsidy in the year 2015 .which’ include the Nigeria National Petroleum Corporation
Accordimg him,'”the NNPC, just as it disclosed that attention would be given to Internally Generated Revenue, IGR to fund the N6 trillion 2016 budget, adding that in 2016, it would remove fuel subsidy, move the price of petrol per liter from N87 to N97.
Udo Udoma spoke he along with the Ministers Finance, Mrs Kemi Adeosun and State for Petroleum Resource; Emmanuel Ibe Kachikwu; Governor, Central Bank of Nigeria, Godwin Emefiele; Executive Chairman, Federal Inland Revenue Service, FIRS, Babatunde Fowler appeared before the joint committees of the National Assembly on Finance to defend the 2016, 2017 and 2018 Medium Term Expenditure Framework and Fiscal Strategy Paper, MTEF & FSP documents presented to the National Assembly by President Muhammadu Buhari.
The Minister for Budget and National Planning said it was important that substantial reductions were made on the spending pattern if the expected change must come in.
He said, ” In preparing the MTEF, we seek a dramatic shift from spending on recurrent to spending on capital aspect of the budget. It is going to be tighter for everybody. All non-essential expenditure would be cut out. We will reduce the overheads by 7 per cent. We are beginning a journey of change and Change has to start with the clarity of purpose of where we are going.
Udoma who noted that the MTEF was prepared in such a way that it would help combat the economic challenges ahead, said that ”challenging times need firm and robust response. This is what the MTEF represents. It was also designed to create better governance; to turn things around and promote economic prosperity for the people.”
With online reports
