Femi Folaranmi, Yenagoa
Bayelsa State Government has expressed concern over the decline in revenue from the Federation Account arising from the global COVID-19 crisis.
According to it the COVID-19 global crisis has had adverse effect on the economy of states which would soon be grounded.
The Technical Adviser on Finance to the Governor, Mr. Maxwell Ebibai, raised the alarm on Wednesday during the state’s monthly transparency briefing in Yenagoa, which was the first under the administration of Governor Douye Diri.
The Acting Chief Press Secretary to the Governor, Mr. Daniel Alabrah, quoted the Technical Adviser on Finance as noting that the COVID-19 challenge poses a great threat not only to the health of citizens but also to the global economy.
Mr Ebibai, who lamented that the Nigerian economy is largely dependent on proceeds from crude oil, said the development portends a grave danger to the country’s economy.
He said explained that according to projections for the year 2020 based on the COVID-19 challenge, if the benchmark for oil remains 30 dollar per barrel, the federal government would receive about N1.5 trillion as against N3 trillion it received in 2019.
Ebibai who recalled that the average sale of crude oil for February was $22 per barrel, stressed that the state government would put in place measures to cushion revenue shortfall to be able to meet its statutory obligations.