“Suspend Spending Limit”: Tinubu’s 10 Economic Proposal That Received Praises, Knocks From Nigerians, Experts
- APC presidential candidate Bola Ahmed Tinubu has revealed his economic plans for Nigerians if elected
- In his 80-page manifesto, Tinubu made various promises, some of which have divided opinion
- One of these is that Tinubu wants the removal of the borrowing limit for an administration
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The All Progressives Congress (APC) Presidential Candidate, Bola Tinubu, unveiled its 80-page Manifesto unveiled in Abuja on Friday, October 21, 2022.
While addressing some of Nigeria's issues, his economic plans have divided opinions on social media and among financial experts.
One of such viewpoint comes from Kalu Aja, a financial expert who stated that while the document provides hope, the key issues merit concerns.
Source: Facebook
Key highlights from Tinubu's economic plan
Aja analysed Tinubu's economic plan for Nigeria from Inflation, debt, unemployment, and subsidy, among others.
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For example, Tinubu promised to optimise government revenues by deploying the same skills used in Lagos State.
He quested the move asking if Tinubu plans to use a proxy for revenue collection.
Aja wrote:
"Does this mean Alpha Beta Corporation that collects revenues in Lagos will be retained to collect federally due taxes and retain 10% of collections?
GDP growth rate
Aja also noted that the economic growth of 10 per cent yearly project by Tinubu is not attainable.
"China, from 1960 to 2022, grew GDP above 10% only 13 times, In 60 years, China achieved 10% in only 13 years, and APC wants to achieve 10% every year for the next 5 years? A tall order, it's a lazy exercise to simply add 10% to past years."
Tinubu economic plan praised
Kalu, in his analysis, praised Tinubu's plan to reduce Nigeria's inflation.
According to him, the proposal of, Tinubu correctly stated that the inflation in Nigeria is supply-driven, not cost-push.
He added that Tinubu saying that the “usual anti inflationary medicine” will not work is absolutely correct.
Kalu stressed:
'Tinubu correctly recommends to fix this inflation is to increase supply
The biggest story however in document is on pg 14, the budget methodology, what I read is the Tinubu administration will scrap the crude oil benchmark.
"This will allow the government spend on deficit , without an “immunization” of revenues.Based on the ability to spend without oil benchmarks the Tinubu administration will pursue an expansion of money supply to employ millions and deploy them to infrastructure projects.
World Bank disagrees with FG on 2022 economy growth prediction of 4.2%
In another report, The federal government projects that the economy will rise by 4.2% in its recently signed 2022 budget
However, World Bank believes it will in-fact grow by 2.5 growth giving various reasons for its prediction.
Defending the expected growth rate, Minister of Finance, Zainab Ahmed believes the expected 2022 economic growth will lift many Nigerians out of poverty
Source: Legit.ng
