Nigeria’s economic situation has continued to generate a bucket of concerns as the country experiences dwindling revenue, and production; a high rate of inflation and indebtedness.
Nigeria’s debts rose by about N4 trillion in the past five months to take the portfolio to N45.25 trillion.
National Bureau of Statistics said weeks ago that the urban inflation rate stood at 20.95 percent, which is 3.36 percent higher compared to the 17.59 percent recorded in August 2021.
Added to these myriad of fiscal challenges is that Nigeria does not have the financial capacity to fund its next budget.
Because of these, Nigeria Employers’ Consultative Association, NECA, warned against more borrowings that will comatose the country.
In a statement in Abuja yesterday, NECA cautioned the Federal Government against further borrowing, contending that the nation is faced with acute and s,elf-inflicted revenue challenges and a rising debt profile, among many other economic headwinds.
They noted with dismay that even with the nation’s current level of indebtedness, the Government is still poised to borrow over N11 trillion to finance the 2023 national budget.
NECA stated: “Organized businesses have witnessed varied challenges in recent months. From shortage of FOREX, stringent regulatory environment to non-alignment of fiscal and monetary policies, which when combined makes doingthe business difficult.
“It is obvious to all discerning stakeholders that the nation is faced with acute and self-inflicted revenue challenges and a rising debt profile, among many others. Even with the nation’s current level of indebtedness, the Government is still poised to borrow over N11 trillion to finance the 2023 national budget.
“Currently, the Government had made a cumulative expenditure proposal of over N19 trillion in the 2023 national budget, a 15.4 percent increase over the 2022 estimate.
While it is necessary and critical to generate revenue to fund not only the 2023 national budget but also to liquidate the interests accruing on the debts, Government will do well not to further burden the Real sector with additional taxes and stringent regulatory environment”
It also has hinted that most businesses in Nigeria are now on the brink of collapse under the pressures from the economic policy environment.
The organization lamented that at the last count, organized businesses are presently faced with over fifty different taxes, levies and fees at all tiers of government, some of which are duplicated.