The Peoples’ Democratic Party (PDP) presidential flagbearer, Alhaji Atiku Abubakar has said that he will create an Economic Stimulus Fund with an initial investment capacity of approximately US$10 billion (N7 trillion at N700/$) to prioritize support to MSMEs across all the economic sectors within the first 100 days in office if given the mandate to lead the country come 2023, Daily Trust reports.
Atiku said this yesterday while presenting his economic blueprint for Nigeria at the private sector economic forum on the 2023 presidential election organized by the Lagos Chamber of Commerce and Industry (LCCI).
He also said he will undertake far-reaching fiscal restructuring to improve liquidity as well as the management of our fiscal resources.
The former vice president promised to take five bold steps including undertaking an immediate review of government spending with a view to eliminating all leakages arising from subsidy payments; stop all fiscal support to ailing state-owned enterprises; improve spending efficiency by gradual reduction of government recurrent expenditures; undertake a review of government procurement processes to ensure value-for-money as well as eliminate all leakages and focus on non-debt financing by promoting a private sector led infrastructure development fund for the financing and delivery of key infrastructure projects.
“We will stop all fiscal support to ailing state-owned enterprises. As with subsidy payments, by holding unto these underperforming enterprises, Nigeria is sacrificing investments in critical areas, including education, health, water, sanitation, and rural infrastructure. For example, the first phase in the rehabilitation of Nigeria’s refineries is expected to gulp US$1.55 billion.
“We will take steps to improve spending efficiency by gradual reduction of govemment recurrent expenditures. Over the medium term, recurrent expenditures should not exceed 45% of the budget and then we will undertake a review of government procurement processes to ensure value-for-money and eliminate all leakages as well as focus on non-debt financing by promoting a private sector led infrastructure development fund for the financing and delivery of key infrastructure projects.”
On debt accumulation, Atiku said he would be more strategic and circumspect. While he expressed worry over the revelation by Nigeria’s Finance Minister in July this year that the cost of servicing Nigeria’s debt has surpassed the Federal Government’s retained revenue by N310billion in the first quarter of the year; he promised to take immediate steps to slow down the rate of debt accumulation by promoting more Public Private Partnerships in critical infrastructure funding and identifying more innovative funding options.
He also said, he would review the current utilization of all borrowed funds and ensure that they are deployed more judiciously. “Our government will specifically ensure that all borrowed funds are for priority infrastructure projects that would generate income, boost output, and put the economy on the path of sustainable growth.
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