President Muhammadu BuhariPresident Muhammadu Buhari’s 2016 budget, known as the budget of change, will take Nigeria nowhere, economist Henry Boyo concluded on Monday morning.
Appearing on Television Continental (TVC) in Lagos, the CEO of Allied Technol Systems Limited wrote off almost Buhari’s entire budget, wondering why the government is going to borrow N2.2 trillion of the N6.06 trillion budget when the money is right here in Nigeria.
Mr. Boyo said there is excess liquidity in the Central Bank of Nigeria and going to borrow money that is already in the system is extremely unwise, especially when the apex bank is trying to restrict access to funds.
“You don’t borrow in order to consume, you don’t need to go borrow, all the money you want to borrow is here,” he said.
“You shouldn’t believe stories. The real problem is that of the management of the money supply, this is not the budget that will transform the economy,” he said, adding that Nigeria cannot drive an economy when inflation is above 12 percent and interest rate is around 27 percent.
He said to drive the economy, the government should insure that borrowing rates are low and inflation can be controlled.