Senate mulls devaluation of naira, budget reduction
The Senate is considering options to cushion the impact of the nation’s dwindling revenue. It might reduce the N10.594 trillion budget of 2020 and back naira devaluation.
Adopting the report of the joint committee it set up to advise the lawmakers on how to handle the effects of the fall in oil prices caused by the coronavirus epidemic, the upper legislative chamber hinted that the devaluation of the naira might be an option.
The joint committee which was presided over by Adeola Olamilekan, in its report, itemized issues for serious debate as “devaluation of naira; the reality of the current situation of the government in terms of number of agencies and parastatals putting into perspective the Oronsanye Panel Report; the need to prioritise both the social and the real sector of the economy looking at their importance to the overall benefit of Nigeria; loss of revenue as a result of gas flaring; and removal of oil subsidy.”
The Senate agreed with the committee’s suggestion that the downsizing of the Appropriation Act 2020 as passed by the National Assembly is inevitable. The upper chamber also charged the revenue generating agencies to be alive to their responsibilities.
The Senate President, Ahmad Lawan, hinted that the bid to secure a foreign loan might have failed, thus necessitating that the Federal Government should source loans or other revenue locally.