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The Manufacturing
Association of Nigeria (MAN) has called attention to the non-allocation in the
2019 budget to dredging of ports that are in other locations outside of Lagos.
Association of Nigeria (MAN) has called attention to the non-allocation in the
2019 budget to dredging of ports that are in other locations outside of Lagos.
In its
perspective on the 2019 budget, the association said its concerns were based on
the fact that the Lagos Ports; Tin- Can Island and Apapa, had long been faced
with congestion, a situation that could be addressed if other ports are
utilised fully.
perspective on the 2019 budget, the association said its concerns were based on
the fact that the Lagos Ports; Tin- Can Island and Apapa, had long been faced
with congestion, a situation that could be addressed if other ports are
utilised fully.
Citing
President Muhammadu Buhari’s budget speech, MAN noted that the N194.24bn
capital allocation to the development of transportation infrastructure was a
26.2 per cent reduction from the N263.10bn allocation in 2018.
President Muhammadu Buhari’s budget speech, MAN noted that the N194.24bn
capital allocation to the development of transportation infrastructure was a
26.2 per cent reduction from the N263.10bn allocation in 2018.
The
association observed also that the N80.22bn allocation for counterpart funding
of railway projects, and the N27.12bn allocation for rehabilitation of rail
tracks and general maintenance/running of the rail system, were critical.
association observed also that the N80.22bn allocation for counterpart funding
of railway projects, and the N27.12bn allocation for rehabilitation of rail
tracks and general maintenance/running of the rail system, were critical.
The
association further maintained that no country in the world had ever become
fully industrialised without a robust railway system.
association further maintained that no country in the world had ever become
fully industrialised without a robust railway system.
“However, no
mention is made of the need to dredge the various ports outside Lagos State to
decongest Tin Can Island and Wharf ports and reduce the cost of moving goods
from ports to the factories,” it noted.
mention is made of the need to dredge the various ports outside Lagos State to
decongest Tin Can Island and Wharf ports and reduce the cost of moving goods
from ports to the factories,” it noted.
Equally, the
association observed that there was a 32.5 per cent reduction in the allocation
to agriculture and rural development in the budget.
association observed that there was a 32.5 per cent reduction in the allocation
to agriculture and rural development in the budget.
It stated,
“The allocation to agriculture and rural development is N80.29bn, which is 32.5
per cent lower than N118.98bn allocation of 2018.”
“The allocation to agriculture and rural development is N80.29bn, which is 32.5
per cent lower than N118.98bn allocation of 2018.”
It, however,
described as ‘commendable,’ the N15.66bn allocation for promotion and
development of agriculture value chains across more than 30 different
commodities and N2.69bn for extension services, including other projects.
described as ‘commendable,’ the N15.66bn allocation for promotion and
development of agriculture value chains across more than 30 different
commodities and N2.69bn for extension services, including other projects.
On the
outlook for 2019, the association predicted that judging from Nigeria’s budget
trends, the proposal might undergo late passage, adding that “the resultant
negative effect on the overall economic ambiance of the country might be
colossal for an economy whose current growth rate was still fragile.”
outlook for 2019, the association predicted that judging from Nigeria’s budget
trends, the proposal might undergo late passage, adding that “the resultant
negative effect on the overall economic ambiance of the country might be
colossal for an economy whose current growth rate was still fragile.”
Analysing the
budget further, the association predicted a contraction in investment inflow
into the country, owing to an increase in interest rates in developed markets.
budget further, the association predicted a contraction in investment inflow
into the country, owing to an increase in interest rates in developed markets.
It said also
that being an election year, the performance of the budget would to a large
extent depend on the transparency and credibility of the election.
that being an election year, the performance of the budget would to a large
extent depend on the transparency and credibility of the election.
MAN concluded
that the 2019 budget appeared to be an extension of the 2018 budget, as no new
grounds were explored.
that the 2019 budget appeared to be an extension of the 2018 budget, as no new
grounds were explored.
“There is the
need to properly align the assumptions of the budget with economic realities,”
it added.
The Punch
need to properly align the assumptions of the budget with economic realities,”
it added.
The Punch
