Buhari’s projection of 2.2m barrel per day not feasible – Expert

Oil rig
Oil rig used to illustrate the story.

An economic expert, Uche Uwaleke, on Wednesday expressed concern over the proposed oil production of 2.2 million barrels per day in 2016, saying the projection might not be feasible.

Mr. Uwaleke, a professor, said in an interview with the News Agency of Nigeria (NAN) in Abuja 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,” Mr. Uwaleke said.

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 would 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.

Mr. Uwaleke said 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 added.

He said 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,” he said.

The Minister of Budget and National Planning, Udoma Udoma, had said the federal government was proposing a budget of N6trillion with a 38 dollars oil benchmark.

The minister said the proposal was contained in the Medium Term Expenditure Framework, MTEF, approved by the Federal Executive Council.

Mr. Udoma said 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)


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  • TAWANDA INCOMMUNICADO

    The Nigerian economy is in the doldrums with the current oil and gas glut projected to get worse in the near and distant future. Nigeria needs a president and an economic team capable of thinking outside the box and it is clear that Buhari lacks the intellect to navigate the rough economic waters because he is so used to oil and gas easy money, Buhari is confused . Nigeria is in a quagmire and will remain there for the next 4 years at the minimum .

    • Mockme

      The incommunicado prophet. What do you suggest as ways to improve the economy?

    • Bidemi Lukman

      oil and gass money? Tell me which gov in Nigeria since oil was discovered to finance the budget with less than 35% from oli. Read the story again. If custom and FIRS promised to generate N4trillion to finance N6trillion budget, this simply means oil and gass is less than 35% of the bubget.

      Dont let your hatred for Buhari becloud you sense of reasoning.

      • Very Proud Oily IZON Redeemer

        Every dog knows Buhari was just fooling himself————–when he made those comments——–Alrteady the Niger Delta is about to start boiling again————-Besides the mumu projections of Buhari for the producing of 2.2m barrels of crude oil from the SS—-the National budget for this year was around 4.6trillion–Yet a mumu clown like u is saying Customs and the FIRS via REMITA will generate over 6 trillion for the economy-U must be insane–Then why not allow the SS secede as they have been wanting to do- since 1914–U must one of those Yoruba thieves around—May be u are talking about revenue from Cocoa who knows——–animals

        • Sincerely Yours

          “already the niger delta is about to start boiling again”. Let it boil. It will be to their detriment. The gun trotting ones amongst them, along with their paymasters will get richer (as usual) and the generality of the people will remain as dejected, and impoverished as ever. Good luck to them.

      • TAWANDA INCOMMUNICADO

        Can you state the last time any economic forecast came to reality in Nigeria especially in the Budget ? Keep dreaming !

  • Very Proud Oily IZON Redeemer

    The Niger Delta Defenders Forum (NDDF), a newly formed militant group in the Niger Delta region, Thursday, condemned in strong terms the invitation extended to Niger Delta ex-warlord, High Chief Government Ekpomupolo, alias Tompolo, by the Economic Financial Crimes Commission (EFCC) in Abuja.

    The NDDF made its position known in a three-paragraph press statement it issued in Warri, Delta State, while reacting to the invitation of Tompolo by the anti-graft body on Thursday.

    Spokesman of the group, General Agiligbegha Izonkuro, who signed the press statement said the invitation of Tompolo was unwarranted and unjustified. He lamented that the President Muhammadu Buhari-led Federal Government was bent on creating crisis in the relatively calm Niger Delta region.

    “I want to tell you with every assurance of confidence that this government has nothing to do with Tompolo. They have revoked all his security contracts with the Federal Government when Dr. Goodluck Jonathan was President. So what else do the APC government want from him?”, Izonkuro queried.

    He noted that the NDDF knew that the development was not unconnected with the APC’s quest to take over Bayelsa State, warning that the Niger Delta would boil again if anything happened to Tompolo. “We are watching them. We are closely taking stock of everything that is going on. If it is about the election then they should forget it. The NDDF has already taken its stand. We are not going to betray the Ijaw nation on the altar of politics. We are not going work people who well known to have repeatedly betrayed the Ijaw nation. Anybody that does that is on his own.

    “The position of the NDDF on the Bayelsa election is also very clear. We want the people of Southern Ijaw to come out in their numbers to massively vote and defend their votes. We will not betray our Ijaw nation to please our true enemies.”

    General Agiligbegha Izonkuro, however, stressed that Tompolo would not honour the EFCC invitation, describing it as a ploy to keep their leader out of circulation when he should be going about his lawful businesses in the Niger Delta.

    Meanwhile, the leader of the Niger Delta Peoples Volunteer Force (NDPVF), Alhaji Mujahid Asari-Dokubo, has given the Federal Government a week’s ultimatum to hands off its alleged plot to rig the governorship election in Bayelsa State and install the All Progressives Congress (APC) candidate, Timipre Sylva.

    Asari-Dokubo in a statement issued in Yenagoa on Thursday, accused the Federal Government and its agencies of collaborating with the INEC to rig the election. He warned that except government steers clear of the alleged complicity, ex-militants would return to the creeks to resume agitation with consequences on strategic oil installations.

    He stated that in furtherance of this, the ex-militants have regrouped under a new formation known as the Reformed Ex-Agitators of the Niger Delta (REND), which he claimed he is now leading to press for a democratic process in determining the outcome of the election. –