What Nigerians think about FG’s budget cut as oil price drops?

With the drop in oil price due to coronavirus pandemic, the Federal Government has reviewed the 2020 Budget to reflect current realities. Here’s what the public thinks about the response of the Federal Government.

Khadijat Saulawa, Development Worker, Katsina

Cutting down government expenditure is a wise decision now because the whole idea of budgeting is based on assumptions and anticipation of revenues. Now that we have woken up to this situation where anticipated monies can’t be expected, government is taking the right decision and what’s most important now is to leverage and avoid wasteful expenditures.

Muhammed Halilu Ibrahim, 38, Civil Servant, Katsina

I’m of the view that government should seize this opportunity to deregulate the downstream sector since the market value of oil in the world is low. Doing this will save the government huge monies on subsidies being paid to stabilise pump price of PMS. The time is right now. Allow market supply and demand to determine prices and government can earn over a trillion naira that can be ploughed back into critical sectors of the economy.

Bashir Mohammed Achida, Student, Sokoto

It is apt, given the way coronavirus has caused a very devastating effect on the world economy. However, it is a wakeup call to quickly diversify our economy from a mono-product. We should have other major sources of income. Our sole dependency on crude oil is what got us into this mess.

Mansur Isa Buhari, Student, Sokoto

It is a great idea that the Federal Government is revisiting the crude oil benchmark as a result of the fall in oil prices. This would ensure that it works within reality. However, the best decision is to quit relying heavily on oil and focus on building an ‘oil-less’ economy for the nation – something that’s long overdue.

Anita Ododo-Obari, 28, Entrepreneur, Port-Harcourt

First and foremost, is oil the only source for funding the budget? If that be the case, cutting down budget isn’t only option but diversifying the economy and meeting up with global standard too. What happens when oil fails totally? I deeply believe it is a good start but will be better and even best if our budgets are realistic.

Madara Bassey, 30, Project Assistant, Lagos

I think we should diversify into some other income generating sources because seriously the oil price is going to keep falling until it becomes almost insignificant. Crude oil is no longer as valuable as it used to be. Everyone is gradually moving towards solar energy and cleaner sources of power so depending on how long it takes for this shift to happen, crude oil will soon be completely displaced. Now we hear of electricity and solar powered cars.

Barry Tosae, 36, Political Analyst, Ibadan

Since it is obvious that the bulk of Nigerian revenue stems from oil and gas, it would be wise to utilize whatsoever comes in as proceeds sagaciously and meticulously.
As oil prices plunges to 29 dollars per barrel, it would be wise for the Federal Government of Nigeria to take a cursory look into certain reckless expenditures being made in order to do away with such expenditures.
On the issue of cutting the budget, my stand is “not until you have excess money in circulation that you begin the make the most judicious decision, even with little, and with the good heads and egghead at the hem both economic and political affairs, revenue gotten would yield utmost result for the good of all.
Conclusively, reckless spendings which result to very high budget should be checkmated to avoid regrets in the future.

Bhaedau Muhammad, Author/student, Sokoto

I don’t see anything wrong with it as long as doing so will not have any negative impact on the masses.