Experts differ on 2016 budget implementation

WITH the signing of the N6.1 trillion budgets, up 20 percent from the 2015 budget, Nigeria is looking to spend its way out of an economic slowdown and diversify its economy.

But experts have said the delay in the passage has been bad for the economy, and might be difficult to achieve targets such as growing the non-oil revenue.

While some of them said they were excited that the budget is one of hope that will deliver Nigerians from pains, others say the amount under the circumstances is not much and that the problems of exchange rate and inflation will diminish the value.

Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company Limited agreed that the move so far was in the right direction, but is far from solving the country’s problems. He said without clarity in foreign-exchange policy, fiscal policy and incentives for investors, the budget might not achieve its purpose.

“Passage of the budget will help but it is not the silver bullet that will solve our problems, In addition to the spending, we need clarity in foreign-exchange policy, fiscal policy and incentives for investors which would attract the needed investments.”

The Managing Director of Invest Data Limited, Mr. Ambrose Omordion said, it is saddening that Nigeria has learnt nothing from the effect of late budgeting over the years, saying budget is a plan on how to allocate resources based on expected revenue. He added that the frequent executive-legislature imbroglio, over budget must stop if Nigeria must make the needed move towards development.

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Also, an economist and a stockbroker with Calyst Securities Limited, Mr. Tunde Oyediran said, the late signing of the budget already have negative impact on the economy.

According to him, development-wise, we are having economic setback and this has driven away investors which is a negative impact on the economy. Head of Investment at Afrinvest, Ayodeji Ebo said he is expecting the implementation of the budget to stir economic activities as stalled capital projects are reactivated and contractors remobilized. “We expect a positive impact because of the huge allocation to capital expenditure compared to the previous budgets which should have more impact on the populace.”

For, President of Manufacturers Association of Nigeria (MAN), Dr. Frank Jacobs, the signing of the budget will bring positive change to the economy. “We have been expectant of the budget and now that is signed, this will lead to economy development and growth. This is a welcome development, as it will lead the economy of the country in the right direction of government. The manufactures will know how to key in and make their machines working again.

President Buhari promised that the sum of N350 billion would be immediately released for capital projects and further assured, that the 2017 budget would be presented to the National Assembly in October such that would allow for early passage.

He said the budget is intended to signpost a renewal of his administration’s commitment to restoring the budget as a serious article of faith with the Nigerian people.