THE Federal Government has been advised to diversify its export revenue sources away from crude oil and ensure speedy ratification and implementation of the Africa Continental Free Trade Agreement.
PwC Nigeria made the call in a document released on its website on Thursday, with the title ‘Highlights of Nigeria’s 2022 budget of economic growth and sustainability’.
The firm noted growing concerns about Nigeria’s rising debt profile with reference to the debt-service-to-revenue ratio.
PwC stated that foreign exchange liquidity constraints had been worsened by the COVID-19 pandemic.
It said, “While some of the revenue-generating initiatives in the budget are commendable, a key focus area may be to explore avenues to diversify export revenue sources away from crude oil, which currently accounts for more than 80 per cent of total foreign exchange receipt.
“It is also important to plug loopholes in government spending, such as reviewing the current petroleum subsidy regime for total removal or to ensure that it is targeted only at the most vulnerable Nigerians.”
According to the firm, concerted and coordinated efforts are required to improve the policy environment and address insecurity in order to boost domestic investment and attract foreign direct investments.
PwC further stated that the federal government should ensure the speedy ratification and strategic implementation of the AfCFTA to position Nigeria as an investment choice destination on the continent.
It also stated that a robust implementation of the Petroleum Industry Act would also promote significant investment in the country through the oil and gas sector and further stimulate economic growth and sustainable development.
