Goodluck Jonathan cuts Nigeria's 2012 budget

Nigeria President Goodluck Jonathan has cut the 2012 national budget by $637 million (100.25bn naira) in response to the demands of Nigerians during a two-week protest against the removal of a fuel subsidy and which almost crippled the nation's economy.

The initial proposed budget which was N4.7490 trillion ($30.14bn) has now been cut down to N4.648 trillion ($29.5bn).

Finance minister Ngozi Okonja-Iweala says the cut was necessary in order to make a provision for the partial fuel subsidy phase out that was agreed on.

She said that the biggest cut was in administrative, training and transport costs.

Since January, the government has been facing serious challenges in achieving budgetary objectives within the context of reduced revenue.

Some Nigerians said the cut suggests the Jonathan administration means business by responding to the needs of the people, while others were more sceptical.

"It is a most welcomed step," said Tobi Oni, a legal practitioner. "But that is not enough. I am glad there is a cut in expenditure but the main cut should come in the allocation for legislature.

"They earn so much money and Nigeria cannot afford to let this continue," he said.

"I don't trust Jonathan like his predecessors, they are just making a fool of us," said Boluwatife Bello, a teacher.

"Just a small cut in administrative cost does not mean a positive development in curbing corruption."

(1 USD= 157.4 Naira)