Yesterday, sources at the Federal Government said that despite headwinds, Budget 2025 will be implemented to achieve its objectives.
A drastic drop in oil price and delayed take-off, among other factors, are threatening the N54.99 trillion Appropriation Act.
An official said there was no cause for worry because the government can easily adjust to the international oil price fluctuations.
Besides, the official said the lifespan of the capital component of last year’s budget was pro-actively extended till next month by the National Assembly to take care of such shocks.
A source said: “Critical steps are already in motion to ensure that the budget is not derailed. The National Assembly took proactive measures by extending the lifespan of the capital component of the 2024 budget until June.
“This extension was aimed at ensuring continuity in funding for projects that are already underway. The idea was to focus on ongoing projects. So, there is no cause for alarm about the 2025 Budget implementation.”
It was further learnt that implementation of budgets begins with the procurement process, which the source explained, could take four to five months before the award of contracts.
He said: “This timeline accounts for the perceived slow pace of the 2025 Budget rollout. Implementation is a process that begins with procurement. Usually, that takes on average four to five months before the actual award of the contract.”
On whether the government was paying attention to the capital expenditure side of the budget, the government insider pointed out that “the recurrent component of the 2025 Budget is in effect. This has kept essential government operations running smoothly.
“The recurrent component of the budget is being implemented. Otherwise, government operations would have been grounded to a halt. So, it’s incorrect to say that the 2025 Budget is not being implemented.”
There are concerns about oil price volatility. In the Budget 2025 Appropriation Act, oil price is pegged at $75 per barrel but as of yesterday, it was sold at $61.5 per barrel.
An official said there was no cause for alarm. He dismissed such fluctuations as a familiar challenge.
