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Sequel to President Muhammadu Buhari’s assent of the 2016 Appropriation bill into law, Post-Nigeria has gathered 5 ways the budget will perform in the next few months.
It could be recalled, that in the last 11 months of the Buhari administration, many Nigerians have been subjected to serious economic hardship, with many demanding for the quick passage of the Budget, in order to ameliorate their sufferings.
According to the All Progressive Congress-led, APC, government, the delay in the passage of the budget had affected Ministries, Departments and Agencies’, MDAs, capacity to deliver on the change mantra.
However, with the recent assent to the appropriation bill by the President, Post-Nigeria gathered that the following will happen within one month of its implementation.
The first is Naira appreciation: it could be recalled that the Naira within the last 2 quarters of 2015 was in a free for all fight, as it exchanged for a record N400 to the dollar, with analysts projecting N600 to the dollar before the year ends.
Presently, the Naira is trading at N320 to the dollar at the black market, but with the passage of the 2016 budget and according to plans by the government to inject N350 billion into the economy, the Naira according to economic pundits will begin to gain strength.
Another area the budget will impact positively, is in the area of inflation: Inflation as at October, November last year according to the National Bureau of Statistic, NBS, was pegged at 9.6 percent.
Presently, inflation figures have hit double digits, the highest recorded so far pegged at 12.4 percent, with prices of goods and services beyond the reach of the common man.
The assent of the 2016 budget is regarded as a great news and relieve, as financial analysts are predicting single digit in inflation figures within one month of its implementation.
Post-Nigeria had reported that one of the reasons the economy collapsed few months into the Buhari administration, was due to cash crunch (shortage of liquidity).
The assent of the appropriation bill will inject massive funds into the system, thereby making it easy for Nigerians to access funds to engage in the production of goods and services.
The 5th, is that unemployed Nigerian youths will begin to have access to jobs, as companies, small business and construction outfits among several others, will begin to recruit in order to meet their demands.
According to NBS, over 2 million Nigerians had lost their jobs within 11 months of Buhari’s administration
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