Aviation expert, Capt. Samuel Caulcrick has called for the urgent expansion of consumer credit facilities targeted at locally manufactured goods.

Caulcrick posited that it would stimulate domestic production, create jobs and reduce Nigeria’s dependence on imports. Caulcrick, who was once the Rector of the Nigerian College of Aviation Technology (NCAT), Zaria, said there was no better time than now to intensify the rollout of consumer credit schemes that encourage Nigerians to purchase made-in-Nigeria products.

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

However, he warned that the success of the strategy would depend largely on effective implementation and transparent governance. In a depressed economy, he stressed, poor project execution and delay 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.

He identified economic leakages as a major challenge, noting that in an open economy like Nigeria’s, additional income often flows into the purchase of imported goods and services.

Caulcrick added: “To address the need for policies that deliberately promote spending on locally-made products, consumer credit for domestic goods will help strengthen the local manufacturing base and improve the multiplier effect within the economy.”

He 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 canvassed that credit expansion must go together 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 pairing them with robust training initiatives to bridge skills gaps.

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