NESG wants the government to reduce spending, reduce waste

As Nigeria continues to witness economic collapse and hardship bites harder, the Nigerian Economic Summit Group (NESG) has asked the Nigerian government to take some measures such as reducing the cost of governance and blocking leakages to support the economy. amid the dwindling economy.

This is part of the recommendations contained in a communiqué issued at the end of the meeting of the NESG Board of Directors and signed by Asue Ighodalo on behalf of the Board of Directors.

The communiqué noted that the Nigerian government must take bold action to address revenue challenges, which it believes are largely caused by spills from large-scale theft of crude oil, the difficult business environment for companies and lack of innovation in collecting taxes. administration, including those that have resulted in low growth in the country’s income base.

NESG said it believes these leaks continue unabated due to the lack of sanctions and ineffective tax systems.

“We must return to the path of debt sustainability in the face of diminishing revenues so as not to create a debt burden for future governments and, indeed, future generations. We must prioritize our spending, limit our spending to items we can service, and eliminate waste and government bribery.

“Governments, at all levels, should lead by example by drastically reducing administrative costs (such as the running costs of the legislature, the proliferation of government agencies, etc.) to reflect the austere times we face.

“We strongly recommend greater transparency and simplicity in the management and communication of various subsidies (petroleum products, electricity, etc.) to identify their real costs that benefit the people.

“Urgent action is needed to ensure food self-sufficiency by prioritizing critical value chains and by supporting private sector-led interventions to contain this crisis and build a vibrant and sustainable food ecosystem in Nigeria based on consistent incentives and sanctions,” the statement said.

NESG said the failure to address the currently prevailing multi-currency condition continues to reduce the much-needed flow of foreign investment and official diaspora remittances.

The Group said international investors, who are smart and rational, will not invest where there is a real risk to their ability to access and repatriate investment returns or when the functional currency depreciates sporadically.

“Multiple foreign exchange (FX) markets with significant price differentials create scope for speculation, round-tripping, cronyism and outright bribery – with an additional negative effect on the economy.

“There is no better time to harmonize exchange rates than now. The federal government’s proposed medium-term spending framework clearly indicates that rising fuel subsidy costs continue to exceed unsustainable levels.

“According to reports from the Federal Ministry of Finance, Budget and National Planning, it is clear that the debilitating impact of the current fuel subsidy regime on our fiscal vulnerability cannot be overstated.

However, NESG urged the federal government to explore a systematic subsidy elimination program that would mitigate the impact on the country’s vulnerable population through a well-coordinated and effectively devolved social protection regime.

“The federal government is urged to develop a pragmatic national security strategy that unconditionally guarantees the safety of life and property in the country.

“The ongoing confrontation between the federal government and the Academic Staff Union of Universities (ASUU), which has led to the closure of universities for about six months, has become a national disgrace.

“The increased tension and anxiety within the citizenry as a result of the effect of the economy deserve urgent attention. We call on our leaders and government agents to do everything in their power to quench tensions and assuage people’s feelings and sensitivities through their statements, actions and behavior.

“The NESG is calling for a new social contract between the government and the people of Nigeria to reduce the growing confidence deficit. The goodwill a government enjoys from its people is no different from managing a bank account – in this case an emotional bank account,” the statement added.

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