REALISTIC BUDGET, PANACEA FOR ECONOMIC GROWTH

Budget management in Nigeria has remained a factor that is setting the nation back in taking its place among the comity of nations that have become self-sustaining as economic giants.

As a way of proffering solutions to the budget imbroglio, the lawmaker representing Eti-Osa Constituency 02

at the Lagos State House of Assembly, Hon. Gbolahan Olusegun Yishawu has called for “a realistic budget” to grow the economy. He made the suggestion in a chat with reporters in Lagos, saying a balanced budget that meets expected projection should address the economy’s challenges rather than indiscriminate borrowing.

Hon. Yishawu is not entirely against borrowing, rather he advocates for a self-sustaining borrowing practice whereby instead of borrowing from abroad, the policy should be tilted in favor of borrowing from within the system. He said “We can for instance, borrow from the pension fund. With this, we can easily manage the system by ourselves”. This current borrowing is a waste. We need to borrow intelligently and ensure that it is tailored to meet the projection”.

The Central Bank of Nigeria (CBN), he said, must be revisited, noting that a situation where investors are expected to borrow at 32% would not improve the real sector.

He added that high interest rate was generating market for other countries at the detriment of local businesses. “Small scale industries are not encouraged, we are rather transferring market to other countries”, he said.

On voters’ apathy, Hon. Yishawu argued that votes count contrary to the general belief that “the power-that-be” have already decided who gets into offices through the back door.
Based on report in The Nation     newspaper by Oziegbe Okoeki on 31 Dec. 2012.