Finance Ministry: Budget Rollovers Reflect Revenue Constraints, Says Olarinde

The Federal Government has attributed the rollover of budgetary provisions to revenue constraints, explaining that projects and capital expenditure items that remain relevant to national development may be carried forward when funds are insufficient for their implementation.

Olufemi Olarinde, Special Adviser, Revenue to the Honourable Minister of Finance and Coordinating Minister of the Economy, said this during a question-and-answer session at the Finance and Business Online Publishers, FiBOP Conference in Lagos recently.

Olarinde explained that budget rollover was an accepted practice in budgeting and accounting, particularly in respect of capital projects that could not be executed within the original budget period but remained important to the government’s development objectives.

According to him, the decision to carry forward such expenditure depends largely on the revenue available to the government.

He, however, noted that instead of simply extending an existing budget, another approach in accounting practice was to close the previous budget and re-appropriate outstanding expenditure items in a new budget.

He said the government’s priority was to improve revenue generation to ensure that critical projects and programmes necessary for Nigeria’s development could be adequately funded.

Olarinde, who said revenue mobilisation was part of his responsibilities at the Ministry of Finance, disclosed that the government was intensifying efforts to expand its revenue base without placing unnecessary financial burdens on citizens.

He explained that ongoing tax reforms were designed to widen the tax net and ensure that individuals and businesses liable to pay taxes contributed their fair share, rather than relying excessively on those already within the tax system.

Addressing concerns over government borrowing and debt servicing, Olarinde said Nigeria’s existing debt obligations had to be considered alongside the need to sustain infrastructure development and other public projects.

He argued that halting ongoing projects because of concerns over borrowing could have adverse consequences for Nigerians, stressing that the country must continue to function and pursue its development objectives.

According to him, improving government revenue remains essential to meeting expenditure commitments, servicing debt and financing development priorities.

Olarinde also emphasised that the ultimate objective of the government’s economic reforms was to improve the living conditions of ordinary Nigerians, rather than merely announce impressive macroeconomic indicators.

He said improvements in gross domestic product, tax-to-GDP performance and foreign direct investment were important because they could stimulate investment, create employment opportunities and increase disposable income.

“The goal is how many people’s lives have been better,” he said, stressing the need for economic reforms to produce tangible benefits for citizens.

He added that the government was working to ensure that improvements in the broader economy translated into better outcomes at the individual and household levels.

On fuel pricing, Olarinde argued that the public reaction to price reductions by the Nigerian National Petroleum Company Limited, NNPCL was partly influenced by its ownership by the Federal Government.

He compared the company with privately owned fuel marketers, noting that similar price adjustments by private operators might not attract the same level of public attention.

Olarinde maintained that the government’s economic reforms were ultimately intended to benefit ordinary Nigerians, including commuters who depend on conventional public transportation.

He said the focus remained on ensuring that economic improvements at the national level translated into practical benefits for citizens.

Photo Caption: Olufemi Olarinde, Special Adviser, Revenue to the Honourable Minister of Finance and Coordinating Minister of the Economy.

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