The Nigeria Retail Investors Group (NRI) has said that economic policy prescriptions for the 2017 proposed fiscal plans should, at the minimum, seek to address a reduction in the cost basis for utilising domestic raw materials/inputs on the production side.
The NRI, a Nigerian think-tank whose membership comprises of Nigerian professionals, made the recommendation in a communiqué signed by its coordinators, Ugo Obi-Chukwu and Tunji Andrews.
According to the body, “The budget plan should contain initiatives which seek to reduce operational (labour, power and logistics), regulatory (tortuous bureaucratic approvals, multiple taxation, etc) and financing bottlenecks associated with accessing local resources. It canvasses that the budget, “stimulates aggregate demand via a combination of fiscally harmonised tax incentives (FG and state) for businesses.
Furthermore, given the cumulative impact of Nigeria’s 36 states and their currently dire fiscal conditions, the federal government should look to temporarily assume a greater burden of state problems conditional on their acceptance of a framework of strict fiscal discipline and accountability, it said.
The body opined that the proposed Budget 2017 should be sufficiently ambitious given the scale of the economic crisis, adding that it should be realistic enough to take adequate cognisance of the constrained fiscal space to avoid a repeat of the mistakes which impacted the 2016 budget.