Issues around funding of the 2020 budget amidst volatility in the crude oil market is expected to dominate discussions this Wednesday as Nigeria’s cabinet holds regular weekly Federal Executive Council (FEC) meeting being presided over by Vice President Yemi Osinbajo.
This is as low revenue generation threatens the implementation of the budget that had projected oil production volume average of 2.18m Barrels per day and a crude oil sales benchmark of $57/ barrel, even as government hopes to strengthen revenue from the 7.5% increase in the Value Added Tax, VAT to fund the budget
Other matters expected to dominate discussions at today’s FEC include the Presidential directives to Secretary to the government of the federation, SGF to immediately address issues of lack of synergy between Ministries, Agencies and Departments of government, based on the observation of the Economic Advisory Council, ECA
President Buhari had while receiving reports of the Economic Advisory Council, headed by Doyin Salami, observed that change in economic matrix can lead to major disruptions in the national economy,
Changes in oil prices, bad harvests, conflicts in strategic global locations, a major epidemic or pandemic like the current Coronavirus, tariff changes in major world economies, may impact negatively on Nigeria’s economy if not properly managed
The ECA had, while presenting a report on their views on Nigeria’s economic outlook, outlined a number of challenging opportunities facing the economy, and proferred solutions to most of them.
The Council had amongst other issues, raised concerns that the rate of the growth of the economy is slower than the rate the country’s population is growing.
They also called for the need to strengthen national statistical agencies; reform procurement processes; improve education; and the need for job planning in training offered by academic institutions.
The Council also brought to the government their views on borrowing, macroeconomic stability and the need to provide a friendly climate for foreign investment.
“We need an environment that will attract investment. People will come only when they feel confident and when they come, their exit will not be challenging,” according to Salami.
The council resolved to focus on legacy projects by the administration before 2023.
Tony Ailemen, Abuja