Financial experts from the Bowen University’s College of Management and Social Sciences have expressed worry that the nation’s 2022 budget may not yield desired positive fruits for the masses except appropriate mechanisms are put in place.
The scholars made this observation at a round table discussion programme organised for Economics students of the institution to analyse the 2022 Federal Government budget, majorly for the purpose of exposing the students to the practical knowledge of their course.
Speaking at the event, Provost of the College who chaired the occasion, Professor Sunday Owolabi, asserted that the budget deficit is not harmful to the economy if the funds would be appropriately and profitably utilised.
According to him, the more fund is injected into the economy, the more employment is generated, the more income is generated, the more social amenities and health facilities are supposed to be provided.
Professor Owolabi noted that before a nation engages in borrowing, it must ensure that its production and income generation capacities can sustain it.
“I am not objecting to borrowing if it is for development purposes. Rather, my concern is that what are we spending the borrowed money on? Are we going to spend the loan on productive assets that will further generate reasonable income? Can it also provide employment for the people to get more taxes? Can it create more industries? Can it provide better infrastructure in the society? Can it provide security to allow foreign investors into the country and also provide an enabling business environment that will support the payment of the borrowed money?
“More importantly, Nigeria must introduce integrity to the budget preparation and budget actualization. It is sad to note that our budget performance is extremely low. I don’t know when last we reached 70 per percent of our budget performance in this country.
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“As it is now, I am envisaging a serious problem in the economy because of the increase in the fiscal bill, as it will influence inflation, increase the unemployment rate in the economy. This is not the time for the government to increase fiscal bill, as prices of goods and services will go up without a corresponding increase in workers’ wages.”
Professor Owolabi advised the government to take experts’ advice on strategies to employ for the smooth running of the economy, as he urged the masses not to hold on to cash but invest their money in more appreciable assets.
Speaking in the same vein on the occasion, the Economics Programme Coordinator in the college, Prof Olayinka Adenikinju, and Head of the Department of Accounting, Dr Ezekiel Oyerogba, admitted that the government may not able to execute the budget successfully without putting some mechanisms in place in the economy.
According to them, the government may have problems in the execution of the budget in the face of insecurity, inflationary challenges and other allied issues. They appealed to the government to appreciate experts’ comments and criticisms on the budget.
Vice-Chancellor of the institution, Prof Joshua Ogunwole, in his opening remarks, reiterated the commitment of the university to intimate its students with practical education life experience situations in their different fields.
According to him, Bowen University looks beyond the National Universities Commission (NUC) curriculum and theories but exposes the students to practicals in regional and national issues to establish their relevance in the economy.
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