2017 budget too small to make any differences, says Osinbajo

• as naira faces further pressure

Vice-President Yemi Osinbajo yesterday said the size of the 2017 budget was not big enough to make a significant difference in the nation’s economy. He put the figure of the 2017 Appropriation Bill yet to be presented to the National Assembly at about N7trillion.

Osinbajo who is the Chairman of the Economic Management Team spoke during a tour of some firms in Sagamu, Ogun State on Thursday.

The Vice-President said the private sector has a big role to play in the nation’s economy while the Federal Government will only serve as a catalyst.

According to him, the Federal Government believes that there is no way of delivering on its economic agenda without a serious partnership with the private sector.

He said, “Our entire budget size for 2016 is something in the order of just over N6trillion and we will probably be moving to about N7 trillion in the 2017 budget.

“But N7 trillion is certainly not the kind of money, it does sound like a fair amount of money, but certainly, it is not the kind of size that can really make a huge difference in an N90trillion economy such as we have.”

Meanwhile, the naira is seen weakening further against the United States dollar next week amid a crackdown in the parallel market currency traders and the persistent scarcity of the greenback.

National Daily gathered that foreign exchange demand by small businesses will surge ahead of holiday season sales.

The local currency fell 2.08 per cent week-on-week on Thursday to 480 to the dollar on the parallel market against 470 a dollar last week, while it was quoted by commercial lenders at 314.80 a dollar on the interbank market.

The naira has, however, consistently closed around 305.5 a dollar level since August via the official window.

“The consistent clampdown on black market operators by security agents has driven some currency retailers’ underground, putting more pressure on available hard currency,” one dealer said.