NACCIMA denounces the new loans; welcomes the timely presentation
By Yinka Kolawole
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) welcomed the timely presentation of the 2022 budget forecast to the National Assembly by President Muhammadu Buhari, but warned against federal government plan to continue borrowing to finance the budget.
In a statement made available to Vanguard on Friday, NACCIMA national chairman Ide JC Udeagbala also applauded the decision to inject affirmative action into the N16.9 trillion naira appropriation bill through of its gender component to make it respectful of gender equality, describing it as a decision.
He said, however, that the increase in borrowing to finance the budget is of concern to NACCIMA.
Udeagbala said: “There is a need to monitor the growing profile of our debt. An increase in the deficit to 6.26 trillion naira, which is to be financed by borrowing, is worrying.
“Although this is a globally accepted tax option, for countries to resort to borrowing to finance deficits in their budgets, caution should be exercised about which component of the budget will be. funded from the budget.
“A sustainable debt profile requires that the borrowed funds be used for critical infrastructure projects that will pay off those loans.
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“There is speculation that borrowing has been encouraged by projections that the Nigerian economy will grow 2.4% in 2022, well above the previously projected GDP growth of 1.8%.
“It has also been said that the decision to increase borrowing is based on assurances of income from crude prices now hovering around $ 80 well above $ 57, supported by a forecast of $ 1.88 million. barrels per day.
“The Association, however, wishes to draw attention to the cycle of booming and slowing international crude oil prices and cannot be viewed as a firm and secure source of income.
“On the contrary, there must be continued efforts to diversify the economy, significantly improve non-oil revenues and deliver infrastructure upgrades and improved security situation.
“This should allow an increase in productive activities, in particular in the agricultural sector. “
The President of NACCIMA further expressed the Association’s satisfaction with the decision within the framework of the budget to further strengthen the frameworks of concessions and public-private partnerships (PPP) and that investment projects that are of Good candidates for PPPs will be developed for private sector participation.