The Manufacturers Association of Nigeria (MAN) in its 2019 Economic Outlook report just released in Lagos has urged the Federal Government to revisit some of the assumptions of the 2019 budget, particularly crude oil production and price as well as ensure upward review of allocations to education and health.
President Muhammad Buhari had in his Budget presentation to the National Assembly two weeks ago benchmarked the 2019 Appropriations on a crude oil price of $60 per barrel, while oil production has a 2.3 million barrel per day projection. MAN is asking the Federal government to revisit these assumptions to reflect present economic realities.
It also called for caution in the country’s rising debt profile in view of the associated service charges and future economic burden that it would exert on the nation.
The association called for a cut down on government recurrent expenditures to reduce fiscal deficit, borrowing and service charges while canvassing for the shedding of the current borrowing size of the government in the domestic financial market so as not to completely crowd-out the private sector.
It urged the government to commence the implementation of the harmonised taxes and levies policy and to allow the Joint Tax Board (JTB) monitor and enforce compliance by states and local governments.
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It called on the government to be more interested in result-oriented spending with frugality, be more transparent and accountable in order to assuage the psychology of taxpayers for improved tax compliance.
The association called for the resuscitation of domestic refining of crude oil and ensure the operability of Independent Power Producers (IPP) for On/Off-grid power generation and the MicroGrid Initiative, urging the government to “ re-classify the manufacturing sector into strategic gas users from the current commercial gas user’s classification.’’
The association urged the Federal Government to continue to entrench better foreign exchange rate management while allocation should tilt more to the industrial sector, including the SMEs.
It also urged the government to fast-track the development of key selected mineral resources through backward integration, especially those with high inter-industry linkages.
It said: “Government should continue to support the resource-based industrialisation and backward integration in the country through appropriate incentives and funding support to investors.”