Agusto & Co, has challenged the federal government to give priority attention to key economic reforms to enhance improved efficiencies in the economy by concessioning key infrastructure and eliminating monopolies of state-owned enterprises (SOEs) in key sectors.
These areas of monopoly include such aviation (airport ownership and management), railway and electricity transmission by opening up these sectors to private sector investments.
The firms also reminded the administration to consider arguments by experts to review the management of subsidies and other cost unreflective tariffs being stifled by price controls.
Augusto &Co, advised in its 2019-2023 To-Do-List, for Buhari that his economic re forms will require the removal of subsidies on the pump price of petrol, allow market forces to determine the domestic price of natural gas, allow electricity tariffs that enable operators earn margins on their costs and also ensure exchange rates reflect fundamentals.
These reforms it believef could help stimulate investments across board and unlock economic growth
It stressed the need for the administration to adopt a private sector growth approach. “Nigeria’s poor non-oil tax takings (3 per cent of nominal Gross Domestic Product GDP) implies that the aggressive adoption of a Keynesian model which prioritises government spending amidst poor tax credentials could create a fiscal time bomb for the nation, it warned, stressing that government will have to understand its limits in stimulating growth and creating jobs.
” Buhari’s reform agenda should also include germane fiscal reforms such as the reduction of interest payments as a percentage of revenues, reduction in the public sector payroll and other recurrent expenditure and boosting government revenues by improving non-oil tax compliance.
These reforms will require Mr. Buhari to expend some of his political capital that has just been raised from the February 2019 presidential elections.
The jury will be unforgiving on Mr Buhari if he fritters his political capital akin to the first term approach”, the firm said.
