Empty Treasury: Experts advise FG on economic policies

Prof. Afolabi Bello, Consultant, European Union Federal Governance Reform, on Wednesday advised Nigerian government to ensure effective economic policies to boost the economy.
Bello, in an interview with the News Agency of Nigeria (NAN) in Abuja, said committed efforts and good policies were panacea to nation’s economic growth.

He said that the president’s announcement of an empty treasury had called for review of the country’s budget deficits and ways to reduce government expenditures.
“But again, when you say that there is no money, I think it is saying that the money may not be able to cater for the expenditure profile of the country,’’ he said.
Bello said that it was important for government to seriously reduce its expenditure and also evaluate its revenue and debt profiles to find a way to stabilise the economy.
He said that government should also review some of its debts and see if the repayment period could be extended.
“Again, like the debt to oil marketers should be critically looked into since too much corruption had been identified with the system,’’ he added.
Bello advised that government must look at ways to reduce tax evasion in the country to enable it generate more revenue for economic growth.
He said that tax exemptions should be discouraged.
“The Revenue generating agencies must be properly equipped to do their work effectively to ensure that everybody pays the appropriate taxes.
“Government must also make sure that it reduces bureaucracy in doing business in the country,’’ he said.
Bello urged government to support the informal sector and make appropriate laws that would help them to pay tax to help grow the economy.
He said that the idea of merging government agencies that were doing the same work was a good step, adding that redundant agencies must be closed down.
This, he said, would help to reduce government expenditures.
Mr. Olalekan Adigun, a Political Risk Analyst and Researcher, said the empty treasury portrayed the level of corruption in the country’s recent past.
“The president must look at unusual areas to run his administration; he must block all the loopholes in the system and ensure strong fiscal policies.
“He must consider belt-tightening by cutting down on the cost of governance in the country,’’ he said.
Adigun advised that tax policies in the country must be strengthened.

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