Buhari’s budget presentation dismissed as unfeasible

NIGERIA president Muhammadu Buhari

NIGERIA president Muhammadu Buhari

From OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) – A global markets watcher has criticised the 2017 budget President Muhammadu Buhari presented on Wednesday as unrealistic.
Rand Merchant Bank, the South African based financial firm, said the budget seemed “overly ambitious” in its targets.
“Our biggest concern with the budget is underlying assumptions,” said RMB in its global markets update on Thursday.
It said firstly, the budget assumed an exchange rate of US$/NGN305, which points to the reluctance of the authorities to relax the foreign exchange
restrictions.
Secondly, RMB stated, the budget assumes oil production level of 2,2 million barrels per day, seems “too optimistic” considering the
debilitating impact that the Niger Delta Avengers has had on oil infrastructure.
The financial house said at this stage, it was hard to see a speedy resolution to the conflict, which would see production increase to the
levels assumed by the budget.
“As a result, revenue is likely going to fall short of expectation forcing the authorities to reduce its spending plans.”
– CAJ News

Short URL: http://cajnewsafrica.com/?p=17049

Posted by on Dec 15 2016. Filed under Africa & World, Finance, National, Regional. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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