Caulcrick Urges Improved Credit Facilities For Local Manufacturers As New Tax Reforms Begins

Capt. Samuel Caulcrick, aviation analyst, has called for urgent expansion of consumer credit facilities targeted at locally manufactured goods to cushion the effect of the implemented new tax reforms.

According to him, such a move would stimulate domestic production, create jobs and reduce Nigeria’s dependence on imports.

He maintained that there was no better time than now for the government to intensify the rollout of consumer credit schemes that encourage Nigerians to purchase made-in-Nigeria products.

Such an approach, he insisted, would complement increased government spending on public works and services, which is often used “as a Keynesian strategy to boost economic activity, expand employment and drive aggregate demand.”

However, he warned that the success of this strategy depended largely on effective implementation and transparent governance.

Caulcrick argued that in a depressed economy, poor project execution, delays or misappropriation of funds could undermine the intended economic impact of increased public spending.

Caulcrick also pointed out that financing development solely through Internally Generated Revenue (IGR), including proceeds expected from ongoing tax reforms, may be inadequate considering the country’s vast infrastructure and industrial needs.

He advised the government to adopt a careful mix of funding sources, including well-managed borrowing, while ensuring that public debt remained sustainable.

The former Rector of the Nigerian College of Aviation Technology (NCAT), Zaria, further identified economic leakages as a major challenge confronting the airlines.

He noted that in an open economy like Nigeria, additional income often flows into the purchase of imported goods and services.

He added: “To address there is need for policies that deliberately promote spending on locally made products. Consumer credit facilities for domestic goods will help strengthen the local manufacturing base and improve the multiplier effect within the economy.”

Caulcrick further cautioned that a sharp rise in aggregate demand without a corresponding increase in production capacity could fuel inflation, thereby eroding the purchasing power of consumers.

To avoid this, he pointed out credit expansion must go hand in hand with efforts to scale up local production.

In addition, he underscored the importance of aligning public works programmes with the skills available in the labour market or alternatively, pairing them with robust training initiatives to bridge skills gaps.

Overall, he maintained that while expanded public spending and consumer credit schemes had the potential to accelerate economic growth and reduce unemployment.

– Charles Ayodele