Dr John Isemede, former Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), has highlighted ways Nigeria can fund its 2025 budget without resorting to borrowing.
Speaking in an ARISE NEWS interview on Thursday, in response to the N13 trillion deficit projected in the N48 trillion 2025 budget, Dr Isemede challenged Nigeria’s borrowing trend and outlined solutions focused on production, trade, and cost-cutting measures.
“The first question we should ask ourselves is, are other countries we look up to as our mates borrowing the way Nigeria is borrowing?” he queried.
Dr Isemede identified production as a critical area for growth, urging the government to establish guidelines for exports and support local manufacturing. “What are we producing?… Where is the guideline for export, and where is the support for local production? This is why we are borrowing,” he said.
He also spoke of Nigeria’s foreign and trade policies, stating, “Our foreign policy, as of today, is not tied to trade. Nigeria does not even have a trade policy. These are part of the reasons why we are borrowing,” he explained.
He advocated for revisiting tariffs and negotiating them to favour the local economy, pointing out that relying on agreements without consulting private sector experts has hampered growth.
“There are so many opportunities, but there’s a total disconnect between the government and the private sector,” he added.
Another key recommendation was reducing the cost of governance. Dr Isemede suggested transitioning to a unicameral legislature to cut expenses and questioned the necessity of having two legislative houses.
“Nigeria, at this moment, cannot shoulder two houses. We should consider a unicameral legislature,” he said.
He also proposed cutting down the number of ministers to ten, arguing that the country lacks the capacity for its current ministerial structure.
Dr Isemede pointed out untapped opportunities in various sectors, including solid minerals, aviation, tourism, petroleum, agriculture, and even the production of consumer goods like beer and wine. He stressed the need to consume locally made products, noting, “What of consuming made-in-Nigeria products? Nigeria cannot produce wine?”
He further criticised the over-reliance on oil revenue, stating that agriculture should play a more significant role in providing food and raw materials for industries. “Why is over 90% of our revenue based on oil?” he asked.
Reflecting on past practices, Dr Isemede recalled a time when the private sector played an active role in budget planning in collaboration with the government. He noted that in the past, whether under military or civilian administrations, both parties would come together to review and contribute to the budget.
Frances Ibiefo
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