Adejoke Akinbode, the extracts lead in the civic organization, Budgit Nigeria, has said that the proposed $1.9 trillion budget for the implementation of Nigeria’s energy transition plan (ETP) is faulty.
She said this exclusively to Nairametrics in a statement on November 4. According to her, the proposed budget is not only unrealistic, but it also does not reflect the current state of the economy.
- Akinbode said: “The government has yet to develop a funding mechanism for this project because oil and gas revenues are dwindling, and using them to fund the ETP implementation is no longer feasible.
- “According to the government, the non-oil sector generated the most revenue in 2021. Although the mineral sector has potential, not enough investment is being made to generate sufficient profits to make this a viable option.”
The optics: According to Budgit, the federal government, in its 2023 budget fiscal assumptions, projects an oil production of 1.69 million barrels per day at $70 per barrel. The projected gross domestic product (GDP) growth will be at 3.75% with an exchange rate of N435.57/$ and an inflation rate of 17.16%. However, Nigeria currently struggles with an inflation rate of 20.77%, and crude oil theft has prevented the country from benefitting from high crude prices due to strong global demand.
