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Some stakeholders in the nation’s financial and economic sectors have insisted that only the full and proper implementation of the 2019 budget will shore up investors’ confidence in the Nigerian economy.
They also advised President Muhammadu Buhari to quickly assent to the budget, arguing that speedy implementation would save the country of slipping back into recession.
According to the experts, they expect the full and proper implementation of the budget to trigger increased tempo in economic activities including shoring up investors’ sentiments in the stock market.
In its own reaction, the Lagos Chamber of Commerce and Industry (LCCI) commended the Senate for the passage of the 2019 budget and called for expeditious signing of the bill into law. The Director-General of LCCI, Muda Yusuf, the made the commendation while speaking to BH in Lagos.
It would be recalled that the Senate had passed the 2019 Appropriation Bill of N8.916 trillion on April 30. The budget is N86 billion higher than the proposal of N8.83 trillion presented by President Muhammadu Buhari to the National Assembly on December 19, 2018.
A breakdown of the budget estimate reveals that the budget for statutory transfer is N502.58 billion, N2.25 trillion is for debt servicing, recurrent expenditure is N4.65 trillion, while N2.94 trillion is for capital expenditure.
Yusuf urged President Buhari to assent to the bill once it was transmitted to him by the National Assembly.
“We are aware that the President is not in the country, but we expect the bill to be signed into law immediately he returns to the country,” he said.
Yusuf said that areas that required review should be done fast, saying that the economy needed the budget as impetus to boost productivity, employment, and infrastructure development.
“We hope that as this administration starts its second term and the ninth Assembly resumes, we would return to a January to December budget cycle,” he said.
He said that January to December budget cycle would ensure stability, reduce uncertainty and boost investors’ confidence in budget implementation and performance.
Also, the Head of Department of Banking and Finance, Nasarawa State University, Keffi, Prof. Uche Uwaleke, said, “I hope the executive arm does not have any qualms with the slight upward adjustment made by the legislatives to the size of the budget which were mainly in respect of matters that manifested only after the proposals had been submitted such as the need to address the fallout of the carnage in Zamfara State.
“I expect this development to trigger increased tempo in economic activities including shoring up investors’ sentiments in the stock market.”
The Chief Executive Officer of NSE, Mr. Oscar Onyema, at a recent extract of the outlook for 2019 had said swift approval and implementation of the 2019 budget would have a positive impact on companies’ earnings as well as consumer spending.
“Accordingly, we anticipate volatility in equities markets first half of 2019, with enhanced stability post-elections. “Therefore, we expect an uptick in market activity during the second half of 2019,” he added. LCCI seeks speedy signing of budget