Signing 2019 budget will improve GDP 2nd quarter – Economist

Mr David Ibidapo, an economic and financial analyst, says that signing of the 2019 Appropriation Bill into law will bring about an improvement in the nation’s Gross Domestic Product (GDP) in the second quarter.

He said this in an interview with source in Abuja, Nigeria’s capital.

According to Ibidapo, it will bring about increased spending and economic activities in the country will improve.

President Muhammadu Buhari, on Monday signed the 2019 appropriation bill of N8.92 trillion into law, adding that adjustments to the budget by the National Assembly may affect its smooth implementation.

The budget had an addition of about N90 billion to the N8.83 trillion he submitted to the legislature in November 2018.

Ibidapo said the signing of the budget would also provide a policy direction for investors as it is set to boost their confidence in the stock market because investors always need a direction to be able to invest.

Speaking on the concerns raised by Buhari over the additional N90 billion that was added to the budget, he said the president would have to work out how to implement the budget, and actualize the minimum wage that was recently signed into law.

He added that the Federal Government would be spending a huge amount of money to actualize the minimum wage, not forgetting that meeting the revenue target for the country was still an issue.

“The only way he can successfully implement the budget and actualise the minimum wage is to block leakages by removing things that are not necessary like oil subsidy.

“If oil subsidy is removed, it will be a huge relief for the government.

“In every way, the government should also try to boost revenue and if that happens it will lead to more economic activities that would spur the growth of the nation’s economy.’’

Ibidapo commended the President for signing the budget at this time, adding that it was one of the earliest times the nation’s budget was signed since the commencement of the administration.