LAGOS – Some financial experts on Wednesday urged the Federal Government to expedite action on the 2015 Appropriation Bill to ensure its passage by first quarter of 2015.
They told the News Agency of Nigeria (NAN) in separate interviews in Lagos that prompt passage of the budget would kick-start economic activities and facilitate development.
Mr Okechukwu Unegbu, the Managing Director, Maxifund Investment & Securities Plc, said that late implementation of the budget would not be good for the nation’s economy.
Unegbu, who is also a past president, Chartered Institute of Bankers of Nigeria (CIBN), said that delay in passing budgets as well as non-implementation of some parts retarded development.
According to him, a budget acts as an investment guide.
Also speaking, Mr Harrison Owoh, the Managing Director, HJ Trust & Investment Ltd., said that budget delay could paralyse activities in all sectors of the economy.
Owoh added that it would bring untold hardship on the masses and increase unemployment rate.
He said that investors and companies relied on yearly budgets to ascertain the direction of the economy.
Owoh said that the oil benchmark of 78 dollars per barrel was not realistic with developments in the global oil market.
He called for downward review of the benchmark to make the nation’s budget realistic and achievable.
Commenting, Mr Sehinde Adenagbe, the Managing Director, Standard Union and Securities Ltd., said that late passage of the 2015 Budget could affect the nation’s desire to be among the 20 top economies by 2020.
Adenagbe said that late passage would slow down economic activities.
He called on the Federal Government to review allocations to capital expenditure, adding that the economy would not grow on high recurrent expenditure.
NAN reports that the Federal Government recently submitted the 2015 Budget proposal through the Medium Term Expenditure Framework and Fiscal Strategy Paper to the National Assembly.
The Federal Government proposed a budget of N4.817 trillion for the 2015 fiscal year, predicated on oil benchmark of 78 dollars per barrel and an exchange rate of N160 to a dollar.
The proposed 2015 expenditure plan translates to almost a N100 billion increase from the N4.724 trillion appropriated by the National Assembly in 2014.
Capital expenditure was pegged at N1.44 trillion against N1.55 trillion in 2014 Budget, while recurrent expenditure was pegged at N2.62 trillion against N2.40 trillion in the 2014 Budget. (NAN)
