An Economic Analyst, Mr Freeman Dugguh, has urge efficient management and utilization of funds budgeted for 2024.
Dugguh, the Chief Executive Officer (CEO), ProCourses Consulting Limited, said this on Sunday in Abuja.
According to him, the Nigerian government’s proposed budget for the 2024 fiscal year is N26.01 trillion, making it the largest in the nation’s history.
He said :”the government and the people should not expect the budget to be the solution to our current economic woes, because budget alone cannot fix the economy.
”A budget should only be a piece of a larger puzzle, a well crafted and executed economic revival strategy/plan.
” The budget is huge and may be wasted. Therefore, the solution is efficient management and utilization of the funds.”
According to the analyst, the increase in budget size raises concerns about fiscal responsibility and the ability to ensure tangible benefits for the populace.
He said an efficient management and utilization of funds was, however, crucial, given issues of corruption and inefficiency in governance.
”Moreso, the larger the budget, the larger the opportunity for stealing in the eyes of corrupt officials,” he said.
The analyst said the accuracy and realism of the assumptions of the oil price are vital, especially considering the volatile global oil market.
On debt management, Dugguh said Nigeria’s increasing debt levels were of concern, thus the need for government to reduce its borrowing to the barest minimal.
“Effective strategies for debt management are imperative to prevent debt servicing from becoming a burden on future budgets.
”Achieving growth while managing inflation is challenging, necessitating a comprehensive plan for sustainable economic growth and inflation control. “
According to Dugguh, there is an urgent need to diversify our income sources to sectors that can create a more resilient economy such as , agriculture, manufacturing, and services.
He said decisions like eliminating petrol subsidies, leading to a threefold increase in fuel prices and a significant depreciation of the naira, have intensified economic hardships.
He said that these measures, while addressing inflation, had other profound social and economic repercussions.
” The naira’s depreciation, while potentially making exports competitive and attracting foreign investment, also leads to market inflation, worsening the already existing inflation crisis,” he said.
According to him, the government needs a broader economic reform strategy beyond immediate fiscal measures to promote sustainable growth and reduce reliance on oil revenue.
“A broad economic strategy that incorporates the budget and other elements such as economic diversification, regulatory reforms, is a must for Nigeria at this point.
”Overall, while the 2024 budget aims to stimulate economic growth and address critical issues, it is essential to scrutinize the government’s strategies for achieving these goals.
”The budget’s success depends on realistic economic assumptions, effective debt management, diversification of revenue sources, and comprehensive economic reforms.
