Some capital market experts on Tuesday tasked the Federal Government on effective utilisation of the market to fund its 2016 development project proposals.

They told the News Agency of Nigeria (NAN) in Lagos that projects that could generate revenue should be funded through the market and not through budgetary allocations.

They were reacting to the N6.08 trillion budget estimates presented by President Muhammadu Buhari before the National Assembly on Tuesday in Abuja.

Alhaji Rasheed Yussuf, the Managing Director, Trust Yield Investment Ltd., Lagos, said the government should use the capital market to increase its capital expenditure in 2016.

Yussuf suggested that the country's housing deficit, ports, railway and agriculture projects, among others, could be financed through the capital market.

According to him, the government should not shy away from the capital market since revenue generating projects can be financed by the market.

Yussuf said government should subject its revenue generating agencies to the market scrutiny to reduce corruption.

He said that the capital market had the expertise, skill and resources for most of these projects being funded by the government.

He said that government should mandate the agencies to package their projects through the capital market for proper funding and must not depend on allocations.

Yussuf urged the government to provide the needed incentives such as tax breaks and review of the existing laws for easy access to land.

“We don’t need government to be funding some of these agencies when we have a market that provides long-term finances.”

He described the 30 per cent allocated to capital expenditure in the budget as a step in the right direction, adding that the figure would increase with proper utilisation of the capital market.

Mr Emeka Madubuike, Managing Director, Compass Investment Ltd., Lagos, said the critical thing about the budget was implementation.

“Every budget is like a plan and the critical thing is how well it will be implemented.”

He said that the market and economy would only feel the impact of the budget if it was properly implemented.

Madubuike called for consistency in government policies to boost investment and stability in the economy.

On the 38 dollars oil benchmark, he said that government needed to slash its spending in line with the present realities.

“We don’t have control over oil price but we have control on what we spend and government at all levels need to tighten their belts.

“We must learn how to manage the little we have. Belt tightening must not be for the citizens alone.”

Mr Harrison Owoh, Managing Director, HJ Trust & Investment Ltd., said that government needed to boost internal generated revenue to make the budget realistic.

Owoh urged government to map out strategies aimed at addressing tax leakages and stop unnecessary waivers granted to companies not contributing to the nation’s development.

He said that all religious waivers should be stopped, adding that government needed to review tax and import duties to boost revenue generation.

He said that the nation did not need to panic over drop in oil prices if other sectors of the economy were developed.

According to him, government should pay more attention to extract industries with less emphasis on oil.

NAN reports that Buhari, while presenting the budget, said he expected a budget deficit of N2.2 trillion in 2016 which would be funded through local and foreign borrowing.

The government also pegged oil benchmark at 38 dollars per barrel with 2.2 million barrels per day. (NAN)

•Photo shows President Buhari.