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2022 budget: Expert seeks radical improvement in revenue generation

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2022 budget: Expert seeks radical improvement in revenue generation

By Chinyere Joel-Nwokeoma

Espera Global Corporation CEO Dr Glenn Prince-Abbi says a lot needs to be done to drastically improve the amount of income generation in the country.

Prince-Abbi, revealed this in an interview with the Nigeria News Agency in Lagos.

He was responding to the 16.39 trillion naira credit bill for 2022 introduced by President Muhammadu Buhari on October 7.

The CEO urged the federal government to ensure proper oversight of revenue-generating ministries, departments and agencies (MDAs) to increase revenue.

Prince Abbi said this is necessary to ensure execution of the 2022 budget, if the proposals become law.

He said that with proper oversight, the federal government could extract tremendous value in the area of ​​income-generating MDA remittances.

“Much remains to be done to radically improve the quantum of income generation. In fact, statistics show that Nigeria’s income generation is one of the lowest in the world, relative to the size of the Nigerian economy.

“To achieve budget performance, a crucial area where the federal government can extract tremendous value is the area of ​​income-generating MDA remittances.

“I think this is a major area where the federal government can extract value in unprecedented ways.

“There should be a complete transformation and turnaround in the quality of oversight by the federal government over its revenue-generating MDAs.

“My recommendation is that once the Appropriations Bill 2022 is enacted, the federal government should initiate defined strategy sessions with its revenue-generating MDAs,” Prince-Abbi said.

According to him, income-generating agencies must be made to realize clearly that the game changer in terms of planned public spending depends on them.

“For a budget heavily dependent on borrowing, I am concerned that there are still many overdue remittances of some 2.65 trillion naira (equivalent to $ 6.48 billion) from various entities such as 77 oil companies in default.

“This exhibition is totally untenable, indefensible and unacceptable.

“These pending remittances provide a huge unexplored window to tap into to strengthen the federal government’s revenue position in 2022 to support budget development.

“I understand that the president gave his approval for these companies to be closely monitored and branded and required to pay all their unpaid remittances resulting from oil profit tax, corporate income tax, school tax, VAT, withholding tax, fees and concessions on rentals.

“The government is forced to borrow to finance the budget and yet there are huge overdue remittances.

“These are difficult times and the federal government must be tougher on all parties to achieve the performance of the ‘budget for economic growth and sustainability’, called the 2022 budget,” he added.

Prince Abbi said there should be no sacred cows to collect these funds.

“Clear and short deadlines must be given to them to honor these payments – and the sanctions must not be spared for confronting these violators, if they show lethargy to comply with them,” he said.

On the budget assumptions, Prince-Abbi said the benchmark oil price of $ 57 per barrel for budget 2022 oil revenues was realistic and defensible.

“This is because at the moment the price of oil has passed the ceiling of $ 80 per barrel,” he noted.

“President Buhari presented a record 16.39 trillion naira ($ 39.8 billion) budget for 2022.

“In the process, the president actually confirmed a previously released GDP growth forecast of 4.2% and an inflation projection of 13%.

“In my opinion, this growth forecast is achievable, just as I think 13% inflation can in fact be improved.

“This is because the main culprit behind Nigeria’s inflationary trends are food prices, and this adds to the spiraling poverty and food insecurity,” he said.

Source: NAN

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