Business leaders decry budget delay - Business Day

Business leaders are concerned over the impact the delay in the signing of the 2008 budget would have on entrepreneurship and investment in the country. They are also worried about the open acrimony between legislators and the executive arm.
The fact that both arms openly traded divergent views on the version of the budget that was appropriate and acceptable has sent disturbing signals on the nature of the working relationship between both arms on crucial policy issues.
The compromise will eventually see the signing of the budget on Monday by President Umaru Yar’Adua. According Olusegun Adeniyi, presidential spokesman, the budget will be signed in its present state.
Subsequently, however, an amendment to accommodate the president’s stance will be forwarded to the National Assembly with a guarantee of prompt passage.
Despite the compromise position which business leaders consider belated, some damage has been done to the economy and the investment climate in the country, they said.
For Biodun Shenjobi, president, Money Market Association of Nigeria (MMAN), the development is disturbing. In his view, since virtually every business activity revolves round the budget, all most business plans are stuck until the budget is passed.
The impact is worst felt in the area of infrastructural development such as roads, among others since these are captured in the capital votes, he added.
Clinton Uranta, managing director, Niger Insurance plc said the situation has been very frustrating and has negatively affected the entire economy.
For him, since company budgets emanate from that of the country, many establishments have not been able to define their policy thrust for the year.
Uranta pointed out that following the delay, government has not been able to release the pension funds under insurers’ management and this has greatly inflicted injury on the life and welfare of pensioners.
He hopes that the presidency would sort its difference with the National Assembly and make sure subsequent years do not suffer similar delays.
Stakeholders on the power sector, who spoke on budget delay, said the power sector was not adequately provided for in the 2008 budget.
A chief executive of one of the new power stations, who spoke on condition of anonymity said President Yar’Adua has not made public his financial plans for the power sector.
He however, pointed out that if the budget had been passed earlier in the year, the president might have unveiled his plans for the power sector.
Operators in the oil and gas sector have also decried the delay in the passage of the budget.
A Shell source said the delay has made it impossible for the multinational companies to receive cash calls from the government.
He stated that government provided for payment of cash calls to the exploration and production companies, but regretted that the delay in approving the budget has affected early disbursement of the funds. Full Story