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The National Assembly has agreed to
review downwards, the N4.6 trillion 2010 budget recently signed by the
president, Goodluck Jonathan, by 40 per cent because of the drop in
crude oil price. To this end, the Assembly has agreed that the
presidency should forward an amendment bill on the budget to scale it
down, Ayoade Adeseun, Chairman, House of Representatives Committee on
Appropriations, told the News Agency of Nigeria in Abuja on Sunday.The legislator said the review was
necessitated by the fear that the revenue projections for the estimate
might be unrealistic, while admitting that the budget, as passed by the
National Assembly, was facing some challenges.

Mr Adeseun said, “The challenge facing
the budget as passed is basically that of revenue. The price of crude
at the time the budget was passed was $84 per barrel and the National
Assembly decided to peg the benchmark to $67 per barrel, which was used
as the revenue projection for the budget, but the current price of
crude as at today stands at $69 dollars per barrel.

“It is not going to make any economic
sense to leave the benchmark of crude at $67 as projected because the
actual price at the international market is becoming too close for
comfort. It is obvious that something must have to be done to avoid (a)
huge budget deficit that might threaten the economy,” he said.

Adeseun admitted that reviewing the appropriation law might not
particularly be ‘out of place’, noting that Mr Jonathan is expected to
forward a proposal for the reduction of the budget to the National
Assembly, for consideration within the week.