Bosede Joshua
The Director General of the Budget Office of the Federation, Mr. Ben Akabueze, has declared that reducing budgetary expenses is not a viable option for the Nigerian federal government. Akabueze made this statement during the Lagos Chamber of Commerce and Industry’s (LCCI) 2024 Economic Outlook and Budget Analysis event, emphasizing the need for more efficient spending rather than cost-cutting. He highlighted the challenges posed by non-discretionary components such as debt servicing and personnel costs, making it essential to continue with a deficit budget.
Akabueze acknowledged concerns about public debt sustainability and the necessity to address the budget deficit. Additionally, discussions during the event touched on diaspora remittances, the removal of petrol subsidies, and the importance of signaling positive impacts through intentional spending. The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, estimated that a significant portion of diaspora remittances did not reach Nigeria, while Financial Derivatives Company CEO, Mr. Bismarck Rewane, stressed the need for Nigeria to take deliberate and sequenced actions to gain the confidence of creditors, investors, and the market.
