Oil price fall threatens SURE-P projects
Following the slump in global oil price, the Subsidy Reinvestment Programme (SURE-P) may experience difficulty in undertaking its mandate due to paucity of funds in 2015, Daily Trust gathered.
Sure-P which is dependent on the money being set aside as a result of the partial subsidy removal by the Jonathan-led administration in 2012, has been complementing governments projects at both states and federal level.
Findings revealed that the federal government share of the fund in 2015 is the sum of N53 billion, about 410 per cent lower than the N268.37 received in 2014.
According to the budget breakdown about N208.3 billion or 78 per cent of 2014 amount was spent on infrastructure projects among others.
Chairman of the SURE-P, Gen. Martins Luther Agwai said last week in Abuja that the office was receiving about N15 billion monthly from the federal government, amounting to 180 billion in 2014.
For 2015, the project will sure serious setback due to the fall in the price of the crude oil in the international market by about 50 percent.
Details of the SURE-P budget by the minister of finance, Dr Ngozi Okonjo-Iweala shows that the agency will depend on total sum of N102.5 billion.
“This sum is made up of the Federal Government’s share of N53 billion from the savings from the partial removal of subsidy on petrol, augmented by the estimated unspent balance of about N49.5 billion in 2014.” She said
“I want to emphasize that the actual money for SURE-P in 2015 will depend on average actual market price in the year.” She added. Agwai said that SURE-P spent about 104.2 billion on construction of roads and bridges in 2014, adding that its total budget for 2015 is 102 billion, showing a reduction in its funding as a result of the fall in oil price which affected the country’s revenue from oil exports.
“I must confess here in appreciation that the critical media analysis of the SURE-P implementation procedure and process in the almost three years of our existence has helped us to improve on our strategies towards efficient and effective delivery of the SURE-P mandate,” he said.