The Nigerian Senate has cautioned the executive against enlarging the budget size through a supplementary budget, urging instead the utilization of excess savings resulting from the recent depreciation of the naira.
With the naira’s value plummeting from N900/dollar to over N1,500/dollar, the Senate emphasized the risk of exacerbating the country’s already high inflation rate by increasing the budget.
Chairman of the Senate Committee on Banking, Insurance, and other Financial Institutions, Tokunbo Abiru, stressed in an exclusive interview with The PUNCH that the government should prioritize reducing the budget deficit by utilizing gains from the budget rather than seeking additional funds through loans.
This stance reflects concerns about the economic repercussions of expanding the budget amid currency depreciation and inflationary pressures. By advocating for the government to harness excess savings and prioritize deficit reduction, the Senate aims to mitigate inflationary pressures and promote sustainable economic stability in the country.
Source: PUNCH