COVID-19: Kebbi Govt seeks way out of dwindling revenue

Kebbi Government on Monday convened a stakeholders meeting to proper a way out, as future federal allocations seem bleak following the crash of oil prices in the international market.
The meeting involved government officials, labour unions
traditional rulers, 21 local chairmen and members of Kebbi House of Assembly.
The meeting was to come up with suggestions on what the state would do to shore up its internally generated revenue and collections in the midst of present financials uncertainties.
According to Gov. Abubakar Bagudu the state is exploring opportunities in other sectors to remain buoyant.
“We are coming together to think of a future without oil as we don’t want to copy other states, rather we want to lead the way for others to follow,” he said
Bagudu told newsmen after the meeting in Birnin Kebbi that they discussed the adverse effects of the crash in oil revenues and a way out.
“We want to be less dependent on oil revenue, and we have accepted a proposal that a committee be set up to spearhead the development and come up with suggestions that will help us to address the current economic realities because of the Coronavirus.”
Earlier, the Permanent Secretary, Budget and Economic Planning, Hajiya Aisha Usman, revealed that the current economic realities had impacted negatively on the state’s 2020 budget.
“Crude oil prices were estimated at $57 per barrel as per the federal government 2020 budget critical assumptions, with crude oil prices falling below cost of production averaging $17 and $30 respectively, accrued revenues and future federal allocations seem bleak,” she said.
She said that the state 2020 budget was also prepared on certain critical assumptions based on the crude oil price of $57 per barrel.
“Statutory allocation was to contribute about N49.6 billion which is 36 per cent of the budget based on the benchmark oil price of $57 per barrel.”
The permanent secretary, however, lamented that the current and forecasted events clearly indicated that the state government finances would be badly affected.
She therefore urged the meeting to come up with strong and workable recommendations to ease out of the present circumstances. (NAN)