Analysts call for realistic revenues, disciplined budget implementation

Capital market analysts have called on the Federal Government to base the proposed budget on more cautious revenue expectations and put stronger systems in place to ensure it is fully implemented.

The analysts, who spoke in separate interviews with the News Agency of Nigeria (NAN), said that while the budget reflects the government’s development ambitions, its success will depend largely on realistic projections, disciplined spending and timely execution.

Vice President of Highcap Securities, Mr David Adonri, said an annual budget is a short-term fiscal instrument designed to address immediate economic challenges while supporting broader development goals.

According to Adonri, despite the Federal Government’s medium- and long-term structural plans, the revenue projections in the proposal may be difficult to realise.

He identified a weakening global crude oil market and rising insecurity as major threats to achieving the projected revenue targets.

Adonri also expressed doubts about the capacity of the revised tax law to significantly raise revenue amid high inflation and weak economic activity.

“I see the budget as exuberant rather than conservative. The huge deficit could further fuel inflation,” he said.

He added that the proposal appeared inadequate in terms of allocating sufficient resources to ending insecurity within a short and measurable timeframe.

Similarly, Mr Sola Oni, a Chartered Stockbroker and Chief Executive Officer of Sofunix Investment and Communications, said the budget aligned with the government’s medium- and long-term aspirations at a conceptual level.

Oni noted that the proposal emphasised macroeconomic stability, revenue reforms, human capital development and infrastructure investment.

“However, in practice, execution will determine the actual outcomes,” he said.

He described the projected deficit of 4.28 per cent of Gross Domestic Product (GDP) as relatively high, warning that heavy reliance on oil revenue exposed the budget to external shocks.

Oni further cautioned that delays in budget approval and weak project execution could undermine investor confidence and hinder the achievement of key fiscal objectives.

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