‘2016 budget proposal could spark up Nigeria’s economic recovery’

Abuja Chamber of Commerce and Industry (ACCI) says in spite of the bleak economic outlook confronting Nigeria, 2016 budget proposal holds key to the nation’s economic recovery.

Tony Ejinkeonye, president of ACCI, who stated this on Tuesday in Abuja, said faithful implementation of 2016 budget “seems as a way out of the woods.”

Ejinkeonye said despite the prediction that oil price might fall as low as $20 per barrel, “there are still huge potentials for inclusive growth and sustainable development in the coming year, notwithstanding the fact that about the 50 percent revenue expected from oil receipts to fund the N6.08 trillion budget together with the projected increase from internally generated revenue.”

He said for the country to actualise its goal, “we need a measure of fiscal discipline and strict budgetary control monitoring and implementation.”

The president reaffirmed the Federal Government resolution to diversify the economy, saying President Muhammadu Buhari, in his budget presentation to the National Assembly, indicated that the focus of the budget would be on inclusive growth.

He said this was expected to be achieved using the budget as a platform for putting Nigerians to work and having job creation as the primary focus of every aspect of the execution of the budget.

“This is to be driven by ‘we’ the private sector and signifies a clear understanding of what is needed in this regard as private sector, and not civil service jobs have the potential of solving this quagmire that the country has presently found itself in.

“I believe that the proposal for the reduction in tax rates for smaller businesses as well as subsidised funding for priority sectors such as agriculture and solid minerals are steps in the right direction,” he said.

The ACCI boss lauded the largest capital vote going into infrastructure and that of recurrent vote to education together with the initiative to absorb about 500,000 teachers.

There are indications that the spending would both stimulate the economy, and the policy of funding a scheme to employ about 500,000 graduate teachers by states and local government would go a long way in reducing unemployment, he said.

He further commended the recently revised Micro, Small and Medium Enterprises Development Fund (MSMEDF) guidelines issued by Development Finance Department of the CBN to support banks and other financial institutions.

According to Ejinkeonye, the revision of the MSMEDF guidelines that help business start–ups under the fund to access funds at zero interest rate and accepting collateral requirements for start-up to include educational certificates.

Such certificates, according to him, include SSCE, National Diploma (ND), National Certificate of Education (NCE), National Business and Technical Education Board (NABTEB), Higher National Diploma (HND), University Degree, NYSC Certificates, and a guarantor.

“This opens a brand new vista for entrepreneurship, access to finance for businesses in general and start-ups in particular and must be commended in strong terms.

“This is simply revolutionary. Previously, only existing businesses can borrow from the funds through their banks,” he said.

Ejinkeonye said the ACCI, the foremost Chamber of Commerce in Nigeria, as an advocate of a more inclusive funding and the face of the private sector, had earlier on engaged the CBN on the need to open up and extend this funding initiative to start-ups, as funding for start-ups was almost non-existent.

This is why ACCI in particular receives this development with excitement and will strengthen its partnership with the CBN to ensure successful implementation, and its initiative to create at least 1 million jobs in 2016, he said.

The proposal to invest in training the youths, through the revival of our technical and vocational institutions, to ensure they are competent enough to seize the opportunities that will arise from this economic revival is not only on point but will herald the much needed revival of the technical and vocational education as a bedrock to economic recovery of the country, he said.

“In other climes, vocational education is key to empowerment and Nigeria will not be any different in this regard.

“All we need is a clear policy and faithful implementation. Also, leaner government policy to cut off waste, the significant reduction of recurrent expenditure and the 223 percent year-on-year growth in capital expenditure demonstrates the desire to make Nigeria more competitive, and start the journey to deliver sustainable development in our country,” he said.