Lawan raises the alarm on looming recession as revenue gap hits $14bn
By Tunde Opalana
President of the Senate, Ahmad Lawan on Tuesday raised the alarm that if the Federal Government fail to close the $14 billion revenue generation gap, the nation’s economy may once again go into recession.
He also raised the hope of an early processing of the 2021 appropriation bill which he said would be presented by the executive next week.
Lawan in his welcome address at the resumption of plenary said the Senate will provide a one month window for defence of the 2021 budget estimates by ministries, department and agencies (MDAs) of government while the month of November will be dedicated to parliamentary processing of the budget in anticipation of Presidential assent and implementation in the JanuaryDecember budget cycle.
He said: “We were confronted with an over $14billion revenue gap and the grim reality of an unwholesome overdependence on oil.
We cannot overemphasize the need to focus on other important sectors like agriculture, solid minerals, steel development and manufacturing, with a view to diversifying our economy.
We need to work with relevant stakeholders to prevent our economy going into a recession, stimulate the economy, save and create more jobs through a sustainable multiplier effect.
“The Senate will provide a one month window for budget defense by Ministries, Departments and Agencies.
Like last year, the month of October, 2020 will be dedicated for this exercise. “Subsequent months of November and December will be dedicated to the internal processing of the Budget by NASS.
The various MDAs are therefore advised to ensure that they avail themselves the opportunity of the budget defense window to appear with all the relevant and necessary information to defend their budget estimates.
He said the Senate must carry out oversight to ensure that the revised 2020 budget is properly implemented, adding that the oversight is even more imperative as the revised 2020 budget is targeted at addressing the specific challenges occasioned by the COVID-19 pandemic.
Also during the plenary, Lawan read a letter from President Muhammadu Buhari in which he presented the Petroleum Industry Bill (PIB) for consideration and passage into law.
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He said the bill combines critical aspect of significant reforms in the industry which include a proposal for the creation of the Nigerian National Petroleum Company Limited.
The bill proposes the scrapping of the Nigerian National Petroleum Corporation and the Petroleum Products Pricing Regulatory Agency.
The bill states that the NNPC Limited will be incorporated by the Minister of Petroleum, who together with his finance counterparts, will determine NNPC’s assets and liabilities that will be inherited by the new firm.
