Some financial analysts have urged President Muhammadu Buhari’s regime to raise the nation’s oil production to the OPEC quota as a panacea to ensure fiscal sustainability and reduce the proposed budget deficit.
They made the appeal in separate interviews on Wednesday in Lagos.
Sherifdeen Tella, the head of the Department of Economics Olabisi Onobanjo University, Ago-iwoye, advised the Buhari regime to raise the government’s oil production over the projected 1.6 million barrels daily.
“Ensuring to meet OPEC benchmark in a business-friendly climate is germane in enhancing government fiscal revenues and effectively implementing the proposed budget,” stated Mr Tella. “The rising budget deficit and the unending need to borrow to execute the proposed budget will be ameliorated.”
He noted that the regime could cut down the high cost of governance to reflect the current economic times.
Also, Titus Okurounmu, former director at the research department of the Central Bank of Nigeria (CBN), said the N20.5 trillion proposed budget was ambitious, considering the country’s previous revenue earnings.
Mr Okurounmu said Mr Buharis’ regime could be more innovative in implementing some of the components of the proposed budget.
“The authorities could adopt more private sector initiatives in fixing the capital component of the budget, which deals with infrastructural renewals and developmental issues in our society,” he added.
Mr Okurounmu noted that the regime could also optimise the enormous prospects in the mining sector to deal with the headwinds associated with the budget.
Meanwhile, a former director of the National Association of Small and Medium Enterprise (NASME), Nerus Ekezie, said the regime could initiate policies to enhance the SME sector in the proposed budget.
“Such initiatives could be in form of more interventions to the SMEs sector, devoured of partisanship, to have the necessary impact. Enhancing the sector and providing critical infrastructure is key to ensure they contribute adequately to the economy and government revenues through taxes,” he said.
Mr Ekezie noted that the budget needs to accord the SME sector the right of place, saying, “it is instrumental to the growth and development of any emerging society.”
Last Friday, President Muhammadu Buhari presented the “2023 Budget of Fiscal Consolidation and Transition” to the joint session of the National Assembly.
Mr Buhari proposed N20.51 trillion for the year with an oil benchmark fixed at $70 per barrel.
The lawmakers had fixed it at $73 per barrel in the Medium Term Expenditure Framework (MTEF) passed.
Other parameters include a daily oil production estimate of 1.69 million barrels, including Condensates of 300,000 to 400,000 barrels per day.
It also includes an exchange rate of N435.57 to $1, a projected GDP growth rate of 3.75 per cent and a 17.16 per cent inflation rate.
(NAN)
