Bayelsa State Government has expressed concern over the decline in revenue from the Federation Account arising from the global COVID-19 crisis, saying the economy of states in the country would soon be grounded.

Governor Douye Diri’s Technical Adviser on Finance, Maxwell Ebibai, raised the alarm on Wednesday during the State’s monthly transparency briefing in Yenagoa, which was the first under the administration of the Governor.

He noted that the COVID-19 challenge had posed a great threat not only to the health of citizens, but also to the global economy.
Ebibai, who is the immediate past Commissioner for Finance, lamented that the Nigerian economy was largely dependent on proceeds from crude oil, stressing that the development portended a grave danger the country’s economy.

He said according to the 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 N1.5trillion as against N3trillion it received in 2019.

According to Ebibai, the average sale of crude oil for February was $22 per barrel, stressing that the state government would put in place measures to cushion revenue shortfall to be able to meet its statutory obligations.

Consequently, he said the State government would embark on an aggressive taxation drive and also collaborate with the Federal Government and multinational agencies to fund its expenditure.
Ebibai solicited the support and cooperation of the people and corporate organisations in the state to enable government shore up its internally generated revenue.