By Bimbola Oyesola
THE 2016 Budget was finally signed on Friday by President Muhammadu Buhari, after several weeks of controversy between the presidency and the National Assembly. But having lost over four months in the year, stakeholders in the real sector expect the Federal Government to fast track its implementation by identifying critical sectors of the economy that must be funded as matter of urgency.
The stakeholders aligned with the president’s thought that the infrastructure should be given the topmost priority, bearing in mind the importance of roads, rail and power to the survival of the nation’s industrial sector.
According to the Director General of the Nigeria Employers Consultative Association (NECA), Segun Oshinowo, priority should be given to capital projects like road and rail construction, that the government should prioritize settlement of domestic debts, particularly in the construction sector.
He opined that such payment would enable the contractors, who were forced to lay off workers due to suspension of works on several construction sites, recall their workers.
He said: “Most workers in the construction sector are presently redundant as their employers are owed by virtually all the tiers of government. But if the operators could be paid on time, they would be able to recall their workers and this will boost employment.”
The Manufacturers Association of Nigeria (MAN), however, believe that the quarterly injection of N350 billion into the economy as well as N200 billion earmarked for infrastructure will no doubt favour the manufacturing sector, whose main problem has been infrastructure.
Its President, Franks Jacobs, sharing the view of the Minister of Budget and National Planning, Udo Udoma, on the difficulty that might arise in the full implementation of the budget, particularly in road construction, enjoined the government to maximise every opportunity to ensure that the budget make impacts on the economy.
“Generally, it’s a relief that the budget eventually came to be and we believe it will work. And for us, infrastructure is key- road, railway and the power. These are key to the manufacturing sector”, he said.
For the sustenance of the sector, Jacobs noted that the budget could impact more on the real sector if the Federal Government could set aside some amount from the quarterly N350 billion as low interest loan for the manufacturers.
The Director General of the Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf, said the signing of the budget last Friday eventually removes the uncertainty and anxiety that have been shrouding investment through the budget delay.
According to him, the initial N350 billion that would be released would have a stimulating effect on the economy as it will impact positively on cash flow.
“We can expect positive impact, new jobs that will be created as contractors owed would be paid. The government’s social intervention programmes, such as mass employment and school feeding may eventually take off now. It would all have other multiplier effects on the economy”, he stated.
Yusuf emphasized that it is critical that government should ensure that infrastructure, especially power and roads, get the utmost attention. “I know they have privatized the power sector, but government still have a role to play.”