FG: Modern economy not possible with N7trn budget

The annual budget of about N7 trillion can’t build a modern economy, Vice President Yemi Osinbajo said.

He said the desire of the Federal Government to grow the economy was limited by the fact that its annual budgeted expenditure is only a small part of a multi trillion naira economy.

The vice president said government’s policy of partnering with the private sector was also borne out of reality.

“The private sector is clearly the bigger contributor to the economy. It thus follows that the private sector must be enabled and encouraged to play its decisive role if our development efforts are to succeed,” he said.

Osinbajo said this in Abuja yesterday at the commencement of the 23rd Nigerian Economic Summit with the theme “Opportunities, Productivity and Employment: Actual is in the Economic Recovery and Growth Plan”.

The vice president’s speech was made available to State House correspondents by his Senior Special Assistant on Media and Publicity, Laolu Akande.

Osinbajo said government was concerned with the very high interest rates which, he noted, had to do with government borrowing.

He said since the evidence pointed to a crowding out of the private sector, the government would reduce its demand for domestic paper and seek to refinance maturing domestic debt with longer tenor and cheaper external borrowing.

He also stated that intervention funds would continue to be made available through the Bank of Industry, and the repositioned NEXIM and the Bank of Agriculture, as well as the newly established Development Bank of Nigeria.

He assured that government would continue to sustain the dialogue with the private sector through the National Economic Summit and the Presidential Quarterly Business Forum.

Osinbajo also stated that government counted on the continued engagement of the private sector to support its economic policies.