Mr Sola Oni, a chartered stockbroker and Chief Executive Officer, Sofunix Investment and Communications, on Monday attributed the lethargic approach to investment in infrastructure as a major impediment to the nation’s growth and development.
Oni told journalists in Lagos that the sluggish approach to infrastructure investment was affecting economic activities with dire consequences for the real Gross Domestic Product (GDP).
“A nation without infrastructure like energy, roads, rails and waterways cannot create an enabling business environment,” the chief executive officer said.
He noted that top-notch and consistent investment in infrastructure had multiplier effects of creating an enabling environment for businesses to thrive and also enhanced employment opportunities.
Oni said conscious and constant investment in roads, rails, utilities, water and airways among others, would aid job creation.
He explained that if these measures were backed with appropriate fiscal incentives, there would be increase in spending.
“Sadly enough, at 58, Nigeria is still contending with infrastructure deficit.
“This must be tackled with dispatch in order to ensure sustainable growth in our GDP.
“The current growth of GDP at 1.81 per cent in Q3 is tenuous. Concerted efforts are required to make the growth sustainable,” Oni said.
Commenting on the budget, he said the 2019 fiscal budget had taken into consideration the challenging operating environment.
“This is noticeable in the Federal Government’s deliberate reduction of the key drivers of the economy to ensure inclusive and sustainable growth.
“The total budget estimates of N8.83 trillion is down from N9.01 trillion of 2018,” the chief executive officer said.
According to him, security breaches, governance issues and vagaries in the international oil market, among others created an atmosphere of uncertainty that enveloped the entire economy in 2018.
Oni said the 2019 budget must be fairly conservative for effective implementation.
“The benchmark price of crude oil at 60 dollars per barrel and production of 2.3 million barrels per day are subject to controversy in view of the signals from the international oil market.
“But the good thing is that the government is not unmindful of these and there are plans to switch gear in the event of unforeseen risks.
“The heart of 2019 budget is the cautious management of the economy by reducing the weight of debt burden and expanding the income generating streams,” he added.
Oni said the exchange rate of N305 per dollar was conservative, noting that the critical challenge was how to grow the GDP on sustainable basis and boost the external reserves.
