The Federal government has also planned to in that 2016 budget, reduce the Personnel cost form N1.8 trillion to N100 billion as part of moves to reduce expenditure and save cost.
According to the FG, an excess of N1 trillion was spent on fuel subsidy in the year 2015 which include the Nigeria National Petroleum Corporation (NNPC), just as it disclosed that attention would be given to Internally Generated Revenue (IGR) to fund the N6 trillion 2016 budget, adding that in 2016, it would remove fuel subsidy and move the price of petrol per liter from N87 to N97, reports Vanguard.
These were disclosed on Monday when the Ministers for Budget and National Planning, Udoma Udo Udoma; Finance, Mrs Kemi Adeosun and State for Petroleum Resource; Emmanuel Ibe Kachikwu; Governor, Central Bank of Nigeria, Godwin Emefiele; Executive Chairman, Federal Inland Revenue Service, FIRS, Babatunde Fowler appeared before the joint committees of the National Assembly on Finance to defend the 2016, 2017 and 2018 Medium Term Expenditure Framework and Fiscal Strategy Paper, MTEF & FSP documents presented to the National Assembly by President Muhammadu Buhari.
Minister for Budget and National Planning, Udoma Udo Udoma, who spoke earlier noted that it was important that substantial reductions were made on the spending pattern.
"In preparing the MTEF, we seek a dramatic shift from spending on recurrent to spending on capital aspect of the budget. It is going to be tighter for everybody. All non essential expenditure would be cut out. We will reduce the overheads by 7 percent. We are beginning a journey of change and Change has to start with the clarity of purpose of where we are going," Udoma said.
Udoma noted that the MTEF was prepared in such a way that it would help combat the economic challenges ahead. "Challenging times need firm and robust response. This is what the MTEF represents. It was also designed to create better governance; to turn things around and promote economic prosperity for the people," Udoma said.
