The Conference of United Political parties (CUPP) has expressed its satisfaction with the early presentation of the 2021 budget by President Muhammadu Buhari
CUPP in a statement issued by its National Secretary, Peter Ameh, said the early submission of the 2021 budget proposal, and its prompt consideration, and passage by the National Assembly will be highly appreciated by the Nigerian people.
“The submission of the budget proposal to the National Assembly in good time will definitely allow the National Assembly sufficient period of time to consider the budget and also give the ministries, agencies, and parastatals to defend their budget proposals.
“The budget parameters and assumptions are realistic except the exchange rate of NGN379 to USD. The exchange rate is unrealistic due to differing exchange rate windows being operated by the Central Bank of Nigeria which distorts projections by the private sector which usually requires forex for their day to day operations.
“On the aspect of Gross Domestic Product which is GDP growth rate projected at 3% is a little ambitious in view of the impact of the COVID- 19 on the economy expected to be linger beyond next year. At the cost of the recent speech report on Nigeria project which is the GPD cost rate of 1.3 % for the country in 2021, the budget proposal for the fiscal year 2021 seems to have set the right priority with the bulk of capital spending going to ministry of work and housing, power and transportation for the first time in over 16 years.”
Ameh noted in his statement that he capital allocation to education and health sectors are more than that of defense, adding that it is an indication of a departure from the stick approach to carrot approach.
“All the budget assumptions look fairly realistic if monetary and the fiscal authorities will match their words with the real action by complementing and harmonizing each other with good policy framework to drive the economy forward.” CUPP noted