With a rising debt profile and fiscal deficit, Nigerians will, this February, decide the future of subsidy at the polls, after many years of expensive spending that crossed the N3 trillion-mark last year alone, just as inflation continues to sink many into poverty.
• Deficit financing to hit N12tr amid unending borrowingWith the general elections 53 days away, Nigerians will determine at the polls, who takes critical economic decisions for the next four years, amid global challenges that continue to cast aspersions on promises of economic recovery in the country.
For many analysts, the country’s inflation level, though at 21.5 per cent, has yet to peak as local prices continue to reflect import pass-through costs. Subsidy removal is expected to compound inflation levels except drastic measures are taken to hedge the risks. Though the Senate rejected President Buhari’s proposal for the restructuring of N22.7 trillion Ways and Means advances given to the Federal Government by the Central Bank of Nigeria , it nonetheless approved that the Federal Government should source the N819.5 billion from the N1 trillion it was requesting from the apex bank for funding for the 2022 supplementary budget.
The contraction, it said, is being driven by unplanned outages at onshore production facilities, a deteriorating security situation, and the cumulative effect of years of underinvestment. “In 2024, however, we expect that production will essentially stabilise,” Fitch said. “A deregulated market reduces the incentive to smuggle products out of the country and ensures better flow of product into the country,” says Vice President, Crude and African Markets, Argus Media, James Gooder.
According to him, an economy that desires job creation, economic inclusion, investment growth and poverty reduction, should have an accommodating tax regime for investors. According to him, the current tax regime conflicts with the National Tax Policy, which prescribes that there should be less emphasis on direct taxation to incentivise investment.
Co-Managing Partner and Chief Executive Officer, Comercio Partners Asset Management, Tosin Osunkoya, noted that 2023 is going to be an interesting year, adding that inflation will begin to moderate.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New Year: El-Rufai pardons 11 convicts | The Guardian Nigeria News - Nigeria and World NewsGovernor Nasir El-Rufai of Kaduna State has pardoned 11 convicts in an exercise of the prerogative of mercy powers conferred on him by Section 212 of the Constitution of the Federal Republic of Nigeria, 1999, as amended. A statement from Sir Kashim Ibrahim House said that the governor, who acted on the recommendation of the […]
Read more »
VerifyMe named company of year at BAFI | The Guardian Nigeria News - Nigeria and World NewsVerifyMe Nigeria, has won the award for RegTech Company of the Year at the 2022 Banks and Other Financial Institution (BAFI) awards organised by BusinessDay Media.
Read more »
Nigeria can’t verify daily oil production, says TUC | The Guardian Nigeria News - Nigeria and World NewsThe Trade Union Congress of Nigeria (TUC) has described as tragic the fact that after 65 years of oil production, Nigeria is still unable to verify daily oil production or add value to the sector.
Read more »
We created 268 new districts in Plateau – Lalong | The Guardian Nigeria News - Nigeria and World NewsGov. Simon Lalong of Plateau has announced that his administration created 268 new districts, two new Chiefdoms and restored three Chiefdoms scrapped by the previous administration.
Read more »
We created 268 new districts in Plateau – Lalong | The Guardian Nigeria News - Nigeria and World NewsGov. Simon Lalong of Plateau has announced that his administration created 268 new districts, two new Chiefdoms and restored three Chiefdoms scrapped by the previous administration.
Read more »
‘New banknotes scarcity, rejection threaten economy’ | The Guardian Nigeria News - Nigeria and World NewsExperts have warned that the scarcity of the new banknotes and widespread rejections over reported counterfeiting would threaten smooth business transactions and the economy if the associated issues are not properly handled.
Read more »