Buhari advised to stop corruption, fuel subsidy to reduce borrowing
Financial experts have urged President Muhammadu Buhari’s regime to raise the country’s oil production quota and expand the tax net to check the rising debt profile and boost revenue.
The experts made the suggestions in separate interviews on Monday.
Johnson Chukwu, Cowry Asset Management CEO, said the Buhari regime could enhance revenue by raising oil production output.
“Raising the oil quota to the pre-COVID-19 era when production rose to over two million barrels per day is the way to go. This will change the fiscal revenue positions and reduce the associated headwinds with rising debt servicing,” Mr Chukwu said.
He added that the federal government could also tackle the country’s shrinking revenues by expanding its economic base, suggesting that “total deregulation of the petroleum sector will open up the domestic economy for more foreign direct investment.”
Sunny Nwosu, the founder of the Independent Shareholders Association of Nigeria, said the regime could reduce the impact of rising debt payments by expanding the tax net, “using more empirical processes to incorporate people into the tax net is possible, as it will automatically boost government earnings.”
Mr Nwosu said this became imperative, particularly now that the fiscal position is challenged due to competing economic demands and advised that the three tiers of government reduce the governance cost to free funds for adequate debt payment.
Godwin Anono, the president of the Standard Shareholders Association of Nigeria, said the Buhari regime must stop all financial leakages in its ranks.
“All government ministries, departments and agencies saddled with generating money should block all the loopholes to boost earnings. Enforcing this suggestion will improve government revenues and ameliorate the impact of the rising percentages for debt,” said Mr Anono.
According to Debt Management Office director-general Patience Oniha, debt services are likely to increase by the end of the year due to low revenues earned by the country.
She disclosed this while appearing before the House of Representatives Committee on Debt and Loans to defend the 2023 budget of the DMO.
Ms Oniha said the regime indulged in a measure called “ways and means”, where it borrows money directly from the Central Bank of Nigeria.
The DMO chief said the international market had closed its doors to borrowing, making it difficult for Nigeria to borrow.
Ms Oniha, however, said measures were provided in the 2023 budget to service the loans, stressing that Nigeria had not defaulted so far.
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
Health
Governor Otu provides N100 million to improve nutrition in Cross River
Mr Otu said the move would increase food production, availability, accessibility, and affordability in Cross River.
Faith
Police arraign two teenagers for stealing phone from mosque
The prosecutor said the offence contravened sections 287, 411, and 308 of the Criminal Law of Lagos State.
World
G7 warns Israel, Iran against escalation, reaffirms support for Ukraine
The G7 also maintained steadfast support for Ukraine over two years after Russia’s invasion.
States
UNICEF tasks Kano, Jigawa, Katsina on improved primary healthcare
He stressed the need for the governments of the three states to ensure an integrated package of primary health services for families in one functional health facility.
States
Driver arrested for ‘cramming’ 15 children into car in Lagos
Mr Hundeyin said the driver, who was contracted to transport the children to a beach, locked four in the car trunk and crammed 11 others together in the vehicle.
Rights
Okuama Killing: Army releases detained traditional ruler
“While culpability has not been conclusively established against the traditional ruler, there is insufficient evidence to exonerate anyone at this stage,” said the army.