- The Lagos Chamber of Commerce and Industry said the delay in the passage of the budget is a threat to businesses.
How the delay in passing Nigeria’s 2018 budget will affect business owners
The delay may jeopardise Nigeria’s goal of becoming one of the top 20 economies by 2020.
The Lagos Chamber of Commerce and Industry, LCCI, said the delay in the passage of the budget is a threat to businesses, development and Nigeria’s goal of becoming one of the top 20 economies by 2020.
Muda Yusuf, the Director General of LCCI in a statement released over the weekend said some of the implications of the late passage of the 2018 budget include a slowdown in the economic recovery process by postponing the multiplier effect of government spending.
He said the delay in passing the budget, therefore, slows down economic activities, with negative consequences.
“If funds for critical projects are not disbursed on time, the tempo of economic activities will be reduced, dragging the economy into a state of inertia and economic decline.”
The implication of the slow passage of the budget
- Capital expenditure such as infrastructural development, construction work and payment of contractors will also be affected.
- It will affect the success of Nigerian businesses, which are key players in the effort to combat the country’s high unemployment rate.
- Private sector operators that depend on the budget to plan their activities for each fiscal year will be affected by the delay.
Timeline of 2018 budget
President Muhammadu Buhari presented the 2018 budget to the National Assembly on Tuesday, November 2017 and was passed by the Nigerian lawmakers passed it on May 16, 2018, after 199 days (about 6 months).
The budget has been with the president for the past 16 days.
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