An economic expert, Prof. Uche Uwaleke on Wednesday expressed concern that the proposed oil production of 2.2 million barrels per day in 2016 might not be feasible.
Uwaleke in an interview with the News Agency of Nigeria (NAN) in Abuja said that the country might not be able to meet the production target.
“So for the output, we would have gone for something that is a little beat lower,’’ he said.
On the government’s plans to spend more on capital projects, the expert said it was necessary, considering the state of the country’s economy.
“As a developing country, we need to spend more on capital projects because that is the only way we can grow the economy, so it is a welcomed idea.”
He praised the pledge by the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service to generate up to N4 trillion for the economy.
According to him, if this is achieved, the government will be able to generate its fund from the non-oil sector as proposed in the 2016 budget.
He further commended the efforts by the Ministry of Budget and National Planning to provide a workable budget proposal for the country.
Uwaleke said that the proposed N6 trillion budget for 2016 by the Federal Government was commendable and very realistic.
“The decision is in order and the amount will go a long way at resolving most of the issues in the country.”
He said that the oil bench mark of 38 dollar per barrel was the least the country had had so far, adding that there was every indication that it could be achieved.
“It has been well analysed that oil will not drop further, that is below 38 dollar per barrel in the near future.
“I believe the proposal is realistic. Right now it is about 40 dollar per barrel, the supplementary bench mark was 48 dollar, so I think a low reference is realistic.”
NAN recalls that the Minister of Budget and National Planning, Sen. Udoma Udo Udoma, said that the Federal Government proposed a budget of N6trillion with a 38 dollars oil benchmark.
The minister said that the proposal was contained in the Medium Term Expenditure Framework (MTEF) approved by the Federal Executive Council.
Udo Udoma said that the funding for the budget would come from earnings from the non-oil sector and most of the increases would be spent on capital projects. (NAN)
•Photo shows Budget and National Planning Minister, Sen. Udoma Udo Udoma.
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