By Bimbola Oyesola, Merit Ibe and Ndubuisi Orji, Abuja
Mixed reactions have trailed the N16.39 trillion 2022 appropriation bill presented to the joint session of the National Assembly by President Muhammadu Buhari,
Reacting, Dr. Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), member of the Organised Private Sector warned that current insecurity in the country and the current foreign exchange policy would be the biggest threat to its realistic implementation.
According to Yusuf over the years, revenue performance had consistently fell significantly below targets, stating that the 2022 revenue outlook may not be different.
“The 2022 fiscal year would be characterised by high risk that the deficit would exceed the budgeted threshold. Debt sustainability challenge would persist. Debt service would continue to exert severe pressure on government finances.
“CBN financing of fiscal deficit would likely persist. This has serious consequences for inflation because of the profound impact on money supply growth. Capital budget will be financed entirely from borrowing. The finance Minister already hinted that government revenue could barely cover recurrent expenditure and debt service. The huge and mounting recurrent expenditure would persist. The prospects of reduced cost of governance remains dim. Fuel subsidy regime would persist with attendant fiscal pressure and leakages.”
Budget of no hope
Minority Leader of the House of Representatives, Ndudi Elumelu, said the budget offers hope to the country.
He accused President Buhari of making false claims about the achievement of the All Progressives Congress ( APC)-led Federal Government.
“Today, our economy is in shambles; there is anger, frustration and hopelessness everywhere. Most Nigerians families can no longer afford their daily meals and other basic necessities of life; they go to bed on empty stomach and wake up with no hope of breakfast or even lunch.
“Our productive sectors have been wrecked by the APC. Millions of our brilliant and inventive youths have been denied opportunities to engage their creative minds in fruitful ventures. When they speak out, they are branded, hounded and even killed. Their only hope of survival is to have the PDP back in power.
“It is even more distressing that the President Buhari-led APC administration has continued in false claims and empty promises as witnessed in Mr. President’s address at the 76th United Nation General Assembly, where, contrary to the ugly reality on the ground, he claimed that his administration had weakened insurgents, built isolation centers and emergency hospital wards, all over the country in the fight against COVID-19, and had been steadfast in safeguarding human rights in Nigeria.
“Mr. President also ridiculously asked for debt forgiveness on one hand while on the other hand he is busy seeking for more loans thereby making mockery of our nation as an unserious country led by a clueless government..
“Earlier today, Mr. President presented an uninspiring N16 trillion 2022 budget that bears no solutions to the challenges facing the nation under his watch. Our caucus assures that we will do all it takes to lobby for the redirection of the budget for the benefit of Nigerians.
Wrong time for tax increase
Chairman, Manufacturers Association of Nigeria (MAN), Apapa branch, Frank Onyebusaid it was the wrong time to talk about tax increases.
“First, the real sector of the economy is suffocating under the effects of the current harsh economic conditions. It would, therefore, be foolhardy to add to their burden which could essentially destroy whatever little hope there is for the survival of industries.
Second, the government must realise that it cannot unilaterally increase taxes without consulting the relevant parties.
Budget benchmarks realistic
Commenting, Nigeria’s first professor of the capital market and former Imo State finance commissioner, Prof. Uche Uwaleke, expressed hopes that the National Assembly would conclude work on it before the end of the year to enable implementation to commence in January following the president’s assent.
“I think the budget benchmarks are largely realistic with respect to crude oil price of $57, exchange rate of circa N410 and real GDP growth rate of 4.2%”, he said.
On the plan to consider fresh tax laws, Kurfi Garba, MD, APT Securities, called for caution, saying, “I do not think the tax review will bring about an increase in taxation on companies and organisations because most of the developed countries are charging 20 per cent tax while we are charging 30 per cent plus educational tax of 2 per cent which is 32 per cent. So, I do not think our tax has any room for increment. Let us not forget that there are foreign companies here and if there were to be an increment, it will mean them leaving our shores to play in other neighbouring markets.