ActionAid Nigeria (AAN) has commended the tireless effort of the Federal government in the early presentation of the 2020 budget proposal to the joint sitting of the National Assembly.
In a statement signed by its Country Director, Ene Obi, ActionAid asserted that the set parameters for the 2020 proposal remains unrealistic given the volatility in the global oil market and the increasing insecurity across the country.
She explained that oil benchmark at $57 and the crude oil production of 2.18bpd are unrealistic.
“The estimated revenue of N8.155t for 2020 is highly welcome, if this will be vigorously pursued. AAN hopes that with the new Finance Bill to be submitted by the President, the review of the domestic tax policy will likely lead to improved revenue over the period.
“Even more worrisome is that N3.39t has been spent out of the N4.46t budgeted for recurrent expenditure as at June 30th, 2019, while only N294.63b was released for capital expenditure as at September 30th, 2019. This has a major implication to the infrastructural development of the country, meaning that we continue to consume far more than we invest.
“AAN is concerned that the 2020 budget proposal continues to deepen the huge gap between the capital and recurrent expenditures. The capital expenditure proposal for 2020 is N2.46t about 24% of aggregate projected expenditure compared to the recurrent proposal of N4.88t, this is not good enough for a country with high need for infrastructural development given the teeming population,” she said.
ActionAid Nigeria decried the abysmal allocations to agriculture N81b, health N46b, education N48b and the Social Investment Programme N30b, saying that it portrays the continued downward trends in the allocation to these key sectors.
“It is pertinent to make provisions for the adequate funding of Agriculture, Health and Education sectors given their strategic importance. Agriculture employs up to 80% of the population, especially in the informal sector, where the majority of the small-scale food producers are women farmers. Similarly, the health sector requires improved funding, our health centre, maternities and hospitals lack basic essential facilities and drugs and evidences have shown that increased investment in these pro-poor sectors has strong impact on poverty and inequality reduction, while simultaneously creating employment opportunities.”
ActionAid Nigeria called on Lawmakers to take a bold step in correcting the inherent inequality in the pattern of allocation in the 2020 budget proposal, with specific reference to the allocations on agriculture, health, education and the National Social Investment Programme (NSIP).
ActionAid Nigeria is an antipoverty non-governmental organisation working to combat poverty and promote social justice in the 36 states and the FCT for20 years, ActionAid Nigeria believes that poverty can be eradicated if rights, redistribution of resources and resilience is prioritised.