The Ultimate Managed Hosting Platform
The Organised Private Sector (OPS) of the Nigerian economy has called on the federal government not to rely much on oil revenue for the effective implementation of the proposed 2021 budget due to the usual burst and boom cycle of crude oil prices.
Features Of The Private Sector – Financial Yard

The Organised Private Sector (OPS) of the Nigerian economy has called on the federal government not to rely much on oil revenue for the effective implementation of the proposed 2021 budget due to the usual burst and boom cycle of crude oil prices.

They also urged the federal government to use the budget to reboot the economy by aligning the budget with the Economic Sustainability Plan (ESP), which was unveiled and designed as the first line of defence to mitigate the effects of the COVID-19 pandemic.

President Muhammadu Buhari had on Thursday presented a proposed budget of N13.08 trillion to the National Assembly for the 2021 fiscal year.

But the Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Ambassador Ayo Olukanni, has raised the alarm that revenue would be one of the biggest challenges in implementing the 2021budget and advised the federal government to truly diversify the economy by paying more attention to sectors like the creative industry, agriculture, and mining and their entire value chain.

Olukanni said: “We see this budget as a continuum of the ESP, which was designed to tackle issues such as improving agricultural production, food security, provision of jobs and social safety net for the most vulnerable segment of society.”

The Director-General of Nigeria Employers’ Consultative Association (NECA), Mr. Timothy Olawale, also called on the government to block the leakages that still permeate the system in order to promote accountability and transparency, adding that “a more strategic need is to reduce the dependence on revenues from oil and strategised ways and means in stimulating the non-oil economy to provide the needed revenue for funding of the budget,” Olawale said.

Speaking in the same vein, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, noted that “revenue is very key and very central to the budget. If you look at the last three years there has been large variances, large negative finances in the revenue targets and it is not likely that what we will have in the 2021 budget will significantly be different.

“So, the revenue will continue to be an issue if we continue to have the economy the way it is and for as long as the private sector continues to struggle with all the challenges in the business environment,” he said.

Commenting on the debt profile of the country, Olukanni said that NACCIMA is worried by the steady rise of both domestic and foreign debt portfolios of the country.

LEAVE A REPLY

Please enter your comment!
Please enter your name here