The National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has advised the Federal Government to diversify the economy, and improve on non oil revenue as the boom and burst cycle of international crude oil prices cannot be relied upon.
National President, Udeagbala made the remark following the upward swing in the borrowing by government to finance the budget 2022.
Udeagbala said an increase in deficit to N6.26tn which would be funded by borrowing was worrisome, noting that a sustainable debt profile requires that borrowed funds must be used for critical infrastructure projects that will enable payback of these loans.
“The association however, wishes to draw attention to the boom and burst cycle of international crude oil prices and cannot be relied upon as firm and assured sources of revenue. Rather, there must be continued efforts to diversify the economy, improve significantly on non oil revenue, deliver on upgrade of infrastructure and improvement in security situation,” he said.
This, Udeagbala stated is to enable increase in productive activities especially in the agric sector. He suggested that the private sector should be encouraged to tap into the opportunities under the budget.