Former Nigerian Vice-President Atiku Abubakar has said there is no justifiable reason for Nigeria to go ahead with the proposed 2021 budget now that the economy is in recession.
Atiku, who said the recession could have been avoided if the present administration had cut the cost of governance, saved for the raining day and avoided profligate borrowing, shared his views in a post via Twitter on Sunday morning, after Nigeria officially slid into its worst economic recession in over three decades, following the National Bureau of Statistics (NBS) announcement of a 3.62percent contraction in the third quarter of 2020.
“For a start, the proposed 2021 budget presented to the National Assembly on Tuesday, October 8, 2020, is no longer tenable,” Atiku said while proffering solution to the difficult situation.
The presidential aspirant in last year’s general election said Nigeria neither has the resources, nor the need to implement such a luxury budget because “the nation is broke, but not broken. However, if we continue to spend lavishly, even when we do not earn commensurately, we would go from being a broke nation to being a broken nation.”
The 2021 budget termed “Budget of Economic Recovery and Resilience” has an aggregate expenditure of N13.08 trillion. This includes N1.35 trillion spending by Government-Owned Enterprises and Grants and Aid funded expenditures of N354.85 billion.
Atiku added that “as a matter of importance and urgency, every non-essential line item in the proposed 2021 budget must be expunged.
To stimulate the economy, Atiku suggested that Nigeria must invest in human development, and increase the purchasing power of the most vulnerable of our population.
Atiku recommends that Nigeria must invest in those most likely to be impacted by the effects of the recession, the poorest of the poor. “As well as stimulating the economy, this also ensures that they do not slip further into extreme poverty.
“For example, a stimulus package, in the form of monthly cash transfers of N5000 to be made to every bank account holder, verified by a Bank Verification Number, whose combined total deposit in the year 2019 was lower than the annual minimum wage,” Atiku suggested.
On how the above advice will be funded, Atiku proposes a luxury tax on goods and services that are exclusively accessible only to the super-wealthy; “A tax on the ultra-wealthy to protect the extremely poor.”
Also, Atiku proposed a 1percent poverty alleviation tax should be legislated by the National Assembly on the profits of every International Oil Company operating in Nigeria, and international airlines doing business in Nigeria, which should also go towards the proposed Poverty Eradication Fund.
“It is inhumane for us as a nation to increase the cost of goods and services that affect the poor, while keeping the cost of luxuries fairly stable. We must flip this, and flip it immediately, Atiku said on Sunday morning.
Atiku noted that Nigeria must stop borrowing for anything other than essential needs; “Again, for the avoidance of doubt, borrowing to pay salaries, or to engage in White Elephant projects, is not an essential need.”
“If we keep borrowing, we stand the risk of defaulting, and that will make recession a child’s play because we will lose some of our sovereignty,” Atiku said
He also urged the administration of President Muhammadu Buhari to swallow its pride, and accept its limitations, open their minds to ideas, without caring who the messenger is.
