The government said an excess of N1 trillion was spent on fuel subsidy in 2015.
The Federal Government has indicated that 2016 would be tough for Nigerians.
In view of the strict economic policies being put in place by the Muhammadu Buhari administration, the government has said it would remove fuel subsidy in 2016, and jack up the price of petrol per litre to N97 from N87.
It was disclosed that over N1 trillion was spent on fuel subsidy in 2015, including the Nigeria National Petroleum Corporation (NNPC).
Government said attention would be given to Internally Generated Revenue (IGR) to fund the N6 trillion 2016 budget.
These were revealed on Monday, Dec. 14, as Ministers for Budget and National Planning, Udoma Udo Udoma; Finance, Kemi Adeosun and State for Petroleum Resource; Emmanuel Ibe Kachikwu; Governor, Central Bank of Nigeria, Godwin Emefiele; Executive Chairman, Federal Inland Revenue Service, FIRS, Babatunde Fowler appeared before the joint committee s of the National Assembly on Finance to defend the 2016, 2017 and 2018 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper documents presented to the National Assembly by President Muhammadu Buhari.
The federal government said it would strictly monitor expenditure of all Ministries, Department and Agencies, MDAs to avoid wastes, as plans to reduce the Personnel cost form N1.8 trillion to N100 billion is also in the 2016 budget.
”In preparing the MTEF, we seek a dramatic shift from spending on recurrent to spending on capital aspect of the budget. It is going to be tighter for everybody. All non essential expenditure would be cut out. We will reduce the overheads by 7 per cent. We are beginning a journey of change and Change has to start with the clarity of purpose of where we are going", Minister for Budget and National Planning, Udoma Udo Udoma said.