Business owners are torn on the effects of the non-passage of the 2016 Appropriation Bill by the National Assembly.
While some say the delay has slowed down business, others feel it has had no effect on their business…
I doubt if the budget crisis is really affecting my business since various governmental institutions we deal with are running and not on shut down. However, one thing that has grounded large part of our business is the sky-rocking dollar rate. Our import business is completely grounded, and even the movie production department is affected as the foreign actor we want to use in our new project charges in dollars and with the current rate, it’s almost impossible to use him.
As for the budget issue, I think the Senate is tackling it wisely. It’s reported that some rogues smuggled in some lines initially not included in the budget and inflated it by trillions of naira. They should take it easy and wean those criminal additions. But as for the falling naira, something needs to be done and fast.
OLAJIDE GREAT MCDEDE
2016 budget crisis doesn’t spell good for Nigeria’s economy as a whole because budget is like a pivot on which the economy stands. It’s the budget that redirects things. So, whatever is happening now to the economy of the country is a consequential effect of the crisis that has caused the delay in the signing of the budget into law.
And as we know, if the budget has not been signed into law, there won’t be any allocation of funds to ministries. And when this happens, there won’t be enough money in circulation. And when there is no money in circulation, it affects all businesses including importing and exporting. So, we are not finding it funny at the moment at all.
It’s really affecting us. But we are still expecting the change they promised us and we hope they will deliver on their promises soon.
Budget of a country in every fiscal year is very vital to the economy of that country. Any delay in its implementation will no doubt affect free flow of all economic activities in that. And that’s exactly what’s affecting us in Nigeria now.
The crisis in the budget has delayed its passage, and when it has not been passed, nothing can be implemented. And for the economy to pick up, there shouldn’t be any further delay at all in the passage and implementation of the budget for 2016.
The earlier the better. As it’s now, my business is affected so also other businesses out there. Government should act fast for the interest of the masses and Nigeria as a whole.
I don’t think it will affect my business in any way. But I must say that it is a disgraceful act on the part of the people concerned.
I think the senate is trying to tackle it. I pray they do that fast because it is a national disgrace, it shouldn’t be heard in International community. They should investigate very well and sanction the people found guilty.
X5 Media Concepts
My issue with the 2016 Appropriation Bill is not only with the delay in the approval, but some of its provisions. The wastage in the past administrations has been well documented, and you’d think that this government will take a different route. Unfortunately, that has not been the case.
Things are moving quite slow in the economy, but you can’t quantify how much of that is due to the non-passage of the budget proposal.
A budget in the midst of an economy that is so unstable is a bitter pill to swallow. If the budget was prepared with an official dollar rate of N197 which is now 395 in the black market official rate may as well be about N340, Can you plan a monthly budget, definitely no. So the only solution may be to wait for some stability before passing the budget. But that will stall the entire country.
Drop in oil prices, increase in exchange rate, means more demand on our currency and an increase in total expenditure. Businesses that deal in exchange rate will double their procurement. Customers will double their initial expense, less people will buy definitely and you may be left only with those who can cope, In essence, only locally produced goods will sell.
It’s time for local production to flourish, shift from imported goods and oil dependence must be grossly minimized. Interest rate must drop for SME’s to grow and then train more entrepreneurs.
Shedico Global Concepts
The whole budget crisis is becoming quite embarrassing. The going back and forth, the padding, the misplacement – it is all uncalled for.
You know the saying that you can’t miss what you never had, so I can’t say if it has affected business or not.
The way forward is for the president and legislators to understand that this is a Nigerian problem, and they should not allow their intra party issues hold the country to ransom.