The CUPP, a coalition of United Political Parties, referred to the recent borrowing concept of more than N4 trillion to finance the shortage of funds in 2021.
CUPP’s Nationwide Secretary, High Chief Peter Ameh, who made the remark while reacting to the 2021 Fund proposal tabled for a nationwide meeting by President Muhammadu Buhari, additionally expressed apprehensions that loans to N3 trillion alone were allocated to serve.
Ameh noted, “The capital allocation for the schooling and health sectors is higher than the defense, indicating a departure from the stick method to the carrot method.”
In his reply, ‘I need to sincerely commend Mr. President for the expeditious submission of the 2021 funding proposal, and maybe greatly appreciated by Nigerian individuals for its immediate consideration and passing by the nationwide Legislative Assembly.
‘Presenting the budget proposal at a nationwide meeting in good time will certainly allow a nationwide meeting a sufficient timeframe for the funds to be contemplated and in addition to helping ministries, agencies, and parastatals defend their fund proposals will get.
‘The price change from NGN379 to USD is lifelong, in addition to budget parameters and assumptions. The price of the change is unrealistic resulting in windows of the price of the change being driven by the Central Bank of Nigeria which distorts estimates by the private sector which often requires foreign exchange for each of its day-to-day operations.
‘In favor of GDP, which is estimated at 3% of GDP growth value, is slightly volatile in view of the impact of COVID-19 compared to the year the economy anticipated.
‘At the expense of the current speech report on the Nigerian venture with a GPD value of 1.3% for the nation in 2021, the Fund’s proposal for the fiscal year 2021 has shown a pre-determined fit with most capital spending going to the ministry for 16 years. Labour and housing, energy, and transportation for the primary time in.
‘The concept of borrowing finances recently with a deficit budget of over N4 trillion is worrisome by allocating it only to more than three trillion loans, the name being for serious thinking.’ The estimated amount of N13.08 trillion is a big one. The amount is there to make an impact but the exorbitant price of servicing debt which is above N3 trillion can be very large and should act as a drag on the financial system.
Everyone’s assumptions look very lifelike if financial and financial authorities will match their phrases with real momentum by complementing and harmonizing each other with great coverage frameworks to advance the financial system. “