The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), has commended the timely presentation of 2022 budget by President Muhammadu Buhari on Thursday to the joint session of the National Assembly.  It also stated it’s worries over the plan of the Federal Government to increase borrowing to finance its proposed N16.39tn for 2022.

In a statement by the  association,  the National President, NACCIMA, Ide Udeagbala, welcomed  the timely presentation of  the budget by the President, Major General (retd.) Muhammadu Buhari.

He, however, said they needed to explore frameworks for concessions and public-private partnerships for capital projects execution.

Buhari had on Thursday presented a plan tagged Budget of Economic Growth and Sustainability to the National Assembly.

Udeagbala said  an increase in deficit to N6.26tn which would  be funded by borrowing was worrisome.

He said, “A sustainable debt profile requires that borrowed funds must be used for critical infrastructure projects that will enable payback of these loans.

“There are speculations that the borrowings have been encouraged by projections that the Nigerian economic will grow by 2.4 percent in the year 2022 well above earlier projected  GDP growth of 1.8 per cent.

“While it is an accepted fiscal option across the world for countries to resort to  borrowing  to finance shortfalls in their budgets,  there must be caution in what component of the budget will be financed by borrowing.”

The NACCIMA boss stated that considering the cycle of international  oil prices, crude sales could not be relied upon as firm and assured sources of revenue.

He said, “It was also said that the decision on scaling up borrowing is based on assurances of revenue from the prices of crude which now hover around $80 dollars well above $57 backed by  projected, 1.88m barrels a day.”

He said FG must continue efforts to diversify the economy, improve on non-oil revenue and deliver on upgrade of infrastructure while improving the security situation in the nation.

Udeagbala said it would enable an increase in productive activities especially in the agric sector.

He added that  there must be caution in what component of the budget would be financed by debt.