The Secretary to the Government of the Federation, David Babachir Lawal, on Wednesday, re-echoed his earlier submission that it will be hard to implement capital projects in 2016.
Lawal stated this when he appeared before a Joint Senate Committee on Ethics, Privileges and Public Petitions, Appropriation and Finance to defend the statement credited to him in the media on constituency projects.
Lawal lamented that from production of 2.2m barrels of crude oil per day, it has dropped to an all time low of 800,000 barrels per day, a development he said was affecting budget implementation.
“The statement is correct. We cannot guarantee the implementation of constituency projects in the 2016 budget,” the SGF declared.
“As a government, constituency projects are championed by members of the National Assembly.
“Like the legislature, members of the executive are politicians who canvassed for votes.
“Lawmakers are aware that oil production had dwindled to about 800,000 barrels per day. This has led to the inability of government to finance the budget.
“It is the duty of government to prepare the minds of Nigerians ahead that there will be challenges in implementing the budget.
“Government based its principle on zero budgeting this year.
“Funds will be released to finance key projects in line with the implementation plans of the government.
“I spoke with the Minister of Budget this morning and I asked him the revenue base of the government.
“We are now receiving about 50 to 60 earnings from what we projected. We have to re-prioritize.
“That statement may not be palatable to the legislature or the citizens. But MDAs are facing challenges in implementing the budget based on the funds available to them”, he added.
