The Nigeria Employers’ Consultative Association (NECA) has said they do not see the 2018 budget making any significant impact on the quality of life of Nigerians.
Speaking with The Nation, the Director General, NECA, Mr Segun Oshinowo said the ratio of Capital to recurrent expenditure is still not at an acceptable level, adding that one would have expected a 65: 35 per cent split; particular if it is recognized that with the devaluation of the Naira over the past couple of months, the value of budgetary provision for Capital in real terms has really not grown.
He said: “ We are therefore continued to be faced with inadequate stock of infrastructure to support our economic growth and development. All in all, we do not see this budget making any significant impact on the quality of life of Nigerians.
“Though, a positive GDP has been projected, one is however skeptical about its impact on employment except if backed by some other policies that will kick start re-industrialisation, backward integration and local content development”.
Oshinowo said the deficit is still worrying, moreso when it will be majorly financed from domestic sources.
He said private sector might be crowded out and interest rate may still be in the double digit target , with projected inflation rate at over 12 percentage. This will affect growth of the real sector of the economy.
He said it is, however important for the government to ensure peace in the Niger Delta so that the production target and by extension the revenue target is not affected.
He commended the Executive for getting the budget ready not too late for delivery to the Legislative.
Also, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has cautioned the Federal Government against selling profitable oil and gas assets or selling assets in the industry as scrap to fund the 2018 budget.
The senior staff trade union expressed its support to any other model to fund the budget aside from selling of the oil and gas assets, calling on the National Assembly to reject as it had done in the past because the plan is not in the national interest.
Reacting to a report on the plans by the government to sell the oil and gas assets to fund the budget, PENGASSAN National Public Relations Officer, Comrade Fortune Obi, noted that the idea was rejected by majority Nigeria when it was first mooted in 2016.
