Abuja – Some economic experts, on Friday in Abuja urged the Federal Government to focus on full implementation of the capital component of the 2016 appropriation Act signed by the President Muhammadu Buhari.
The experts Nigerian Observer in separate interviews that given the economic crunch in the country, it was important to embark on projects targeted at reviving the economy.
The Nigerian Observer reports that a budget of N6.6 trillion was signed by President Muhammadu Buhari on Friday in Abuja.
The signing of the budget came as a relief to many Nigerians following series of controversies that surrounded its pasing by the National Assembly.
Dr Uche Uwaleke, Head of Department of Banking and Finance Nasarawa State University, said government should hit the ground running by releasing the promised N350 billion fund meant for the payment of contractors.
He said that the fund would enable the contractors to pay some of their staff that had been laid off, and help in stimulating economic activities in the country.
He said that the implementation of the capital component of the budget would help counter the inflationary rate of 12.6 per cent in the country.
Uwaleke said inflation rate had led to a high cost of doing business in the country, which resulted in the laying off of workers by many companies.
“We need a counter tool to reduce inflation and the counter tool is fiscal policies of Central Bank of Nigeria (CBN) and government expenditure, the government needs to spend money in the economy.
“ Government needs to spend money in the right direction and that right direction is infrastructure and capital projects.“
He said that the injection of fund into capital projects would lead to job creation, noting that unemployment was on the high side in the country.
Uwaleke also explained that the signing of the budget would attract investors into the country as most investors were eagerly waiting for the appropriation bill to be signed into law.
“We expect that the economy will pick up gradually, we also expect that the investors who have been on sidelines waiting for the budget to be out will come in,’’ he said.
He also expressed the belief that with the signing of the budget, the capital market would pick up leading to an appreciation of prices of stocks.
On the approval of the budget on 38 dollar a barrel benchmark, he said that the country could work with the projection.
He, however, emphasised that in the event of less revenue from oil sale, the relevant agencies of government should focus on the internally generated revenue.
“It is now left for the Federal Inland Revenue (FIRS) the Nigerian Custom Service to work on the internally generated revenue.
The University Don noted that the accumulation of excess internally generated revenue would reduce the nation’s rate of borrowing to finance the budget.
Similarly the President of Abuja Chamber of Commerce and Industry Limited (ACCI) Mr Tony Ejinkonye, said that budget implementation should focus on improving electricity generation, transmission and distribution in the country.
He said that efforts should be tailored to improve Small and Medium Enterprises (SMEs) development whichwould help stimulate the economy.
He said the cost for lending was high noting that more funds should be channelled into developing the SMEs.
Meanwhile, Mr Lawrence Ode, a policy analyst, said that budget implementation should focus on developing critical sectors like agriculture, education and manufacturing sector.
He said that the industrialisation of the nation would help reduce the growing poverty in the country.
