Rt. Hon. Aniekan Bassey, Speaker Akwa Ibom State House of Assembly

It is no more news that Akwa Ibom State House of Assembly has amended 2020 appropriation law.

Addressing newsmen, Chairman House Committee on information and member representing Etinan State Constituency Barr. Aniefiok Dennis Akpan gave reasons for the downward review of the appropriation law.

Chairman House committee on Information, Barr Dennis Akpan

He attributed the review to the sharp decline of crude oil in the international market sequel to novel Coronavirus which has destabilised the budgetary provisions of 2020.

Crude oil sales make up around 90% of foreign exchange earnings in Nigeria. The 2020 budget, passed in December, was calculated assuming crude production of 2.18 million barrels a day at a price of $57 per barrel.

Benchmark Brent crude futures were down about 20% at slightly above $36 a barrel at 6pm yesterday.

The revised provision of the budget as approved is the reduction of Recurrent Expenditure by 13,000,000,000 now N98,224,509,700 from intital N111,224,509,700.

“The approved provision for the Consolidated Revenue Fund Charges for the year 2020 was N116,933,504,020. The House approved a reduction of N36,100,000,000. The amended provision is now N80,833,504,020.”

“The Capital Expenditure approved in the 2020 Budget stood at N369,576,986,280. The House approved a reduction in the sum of N182,635,000,000 for the Capital Expenditure, as part of the amendment. The approved Capital Expenditure now stands at N186,941,986,280.”

“From the foregoing, the total Budget size approved in 2020 which was N597,735,000,000, has now been reduced to N366,000,000,000, for the 2020 fiscal year. This represent 38.8% reduction of the original Budget”, Chairman House Committee on information Barr. Aniefiok Dennis Akpan told reporters after yesterday’s plenary session of the assembly.

Barr Dennis Akpan and Chairman House Committee on Appropriation Rt. Hon. Uduak Odudoh briefing newsmen after the sitting.