Monday, March 7, 2016

Nigeria: The Economic Upside By Kemi Adeosun

Article below written by Minister of Finance, Mrs. Kemi Adeosun...
Nigerians voted for change and to attain that change there is a need to do things differently, in the recognition that doing what we have always done will only result in more of the same. That change has started with the vital offensive against corruption, which has had a huge and adverse effect on our economy. Much of the debilitating under investment in our infrastructure that has handicapped our economic growth, has arisen because funds were diverted to enrich a few at the expense of the wider populace.
At the lower levels, the waste, inefficiency and culture of non-performance have, like a financial cancer, eaten away at our core institutions. We are already beginning to see change. The slide towards self-destruction has slowed down but we must now work collectively to ensure that we exploit the upside from our situation.


Globally the downturn has hit all nations,rich and poor alike. The manner in which governments have intervened to protect their economies have been diverse and innovative. What is abundantly clear is the fact that the previous consensus about what is best for the global economy is rapidly changing. There is a concerted move towards individualism rather than collectivism. The new normal for the global economy is that there is no normal, each nation must painstakingly work out the best path to follow.

For Nigeria,we believe that the best path to follow is to invest in infrastructure that will unlock the potential in the non oil sectors.  We can transition from being a commodity economy to an industrialised, regionally dominant one. Oil is important but clearly, oil it not enough. Iran is a very recentand relevant example of living without oil. The sanctions that embargoed Iran’s oil led to the development of robust petrochemical and other export industries that enabled the country to survive. Iran survived without oil, made tough decisions and is now being feted by investors as the next growth story.

The focus of our economic policy is to redress the infrastructure deficit, unlock the rich diversity in the economy with a determined and focussed turnaround programme.For us it would be a tragedy to have endured so much pain and not emerge better and stronger.The provision of a spending stimulus to the economy is critical to releasing the upside in the economy.Investing specifically in Power and Transportation will release the opportunities in solid minerals, manufacturing and agriculture.

However, government spending alone is insufficient to bridge the infrastructure gap and there is a need to embrace private capital to provide additional impact.We are at an advanced stage of reforming the process for Public Private Partnerships to provide a seamless pathway to attracting much needed private, financial and operational input to service delivery.  Private capital brings more than financial resources; it also brings discipline and best practice, creating a benchmark against which the utilisation of public money can be measured.

It is important to link the fiscal housekeeping initiatives that we have started with the wider economic strategy. Specifically, questions around the focus on corruption and the elimination of ghost workers, controlling inefficient spending and preventing revenueleakages,need to be evaluated in the context of how it impacts our ability to stimulate the economy. We have been increasing our level of borrowing annually, and much of that is used to fund recurrent spending. Indeed in 2015 just 10% of spending went to capital items. We spent more on travel, training and stationery than on roads. No nation has ever developed with such consistent underinvestment in capital.

Growing the economy at a rate that will address the employment needs of our huge population requires a fundamental change in how government collects its revenues and spends. The 2016 budget is deficit financed; and the fiscal housekeeping which is aggressively blocking revenue leakages and reducing costs is firmly aimed at ensuring that the borrowed funds are channelled into capital projects, rather than seepingthrough an inefficient financial management system. This is not only prudent economics but it is a moral necessity, since these borrowings will be repaid by future generations.Therefore, while we focus fully on the macroeconomic indicators; we must and will continue to focus on the micro factors which collectively shape and determine the larger picture. 

The road map to attaining our objectives is a tough one, and we may endure the financial pain for longer than we would prefer, but the upside is that we have actually already endured the worst part of the adjustment cycle.  The outlook for oil prices is looking more positive but we are fundamentally determined to ignore oil. One word that will resonate across all that we do in government is ‘Discipline’. Financial discipline is going to be a game changer in shaping the future of Nigeria’s economy.

Our focus will make sure that ‘every naira counts’ irrespective of its source. The government is ready and determined to lead this crusade of financial responsibility. The big questions are:
§  Is the populace ready to do the right thing in their respective areas of operations?
§  Are we willing to be frugal and conservative in expenditure?
§  Are we as custodians of the nation’s wealth willing to manage the resources entrusted to us with care, knowing that someday we will be called to account?
§  Are we willing to confront those who mismanage our collective wealth regardless of the consequences?

§  Dare we look at what worked successfully in the 50s and 60s, and thenmodernise and re-enact them?
§  Dare we look at global trends, and courageously invest in our forecasted choices?
Nigeria stands on the threshold, daring to move into previously uncharted territory through identifying and embracing novel economic and fiscal policy stratagems that will release our considerable upside. We are for innovation to create a new workable path, courage,and discipline to implement and build a resilient economy that is not controlled by the oil price.

This is the first of three articles by Mrs.KemiAdeosun,Honourable Minister of Finance, Federal Republic of Nigeria.

60 comments:

Anonymous said...

Ok



Meenah_wakil on instagram

Anonymous said...

Ok



Meenah_wakil on instagram

freeborn zinalima said...

Hmmmmmm funny minister,another useless meaningless article.
This ugly yoruba bitch is confuse were is that change in Nigeria my dear stop disgracing una scam government,when ever i heard change what comes into my mind is,this people did the think that every Nigeria is as fool as there supporters of what.
Madam bitch better step down ngozi okonjo iwola is still the best woman may God bless her.

















#sad indeed

Saphire Muna said...

No need for too much talk, we knew all this..... U guys shld get to work and make this change physical one... Lets nigerians feel the positive side of this change.... At present we are nt feeling the change..... Suffer too much biko.....










...... God bless Nigeria.....

NaijaDeltaBabe said...

Too long


...merited happiness

RareSpecie Z said...

Dope.

Anonymous said...

This piece is superficial and lacks depth. There's nothing mentioned here that we are not aware of, nothing new. Kemi can't do this job!

Anthony Adeyemi said...

Can't waste time reading all this jawe too long.....yrouba says "choki ni obe oge"

Anonymous said...

Madam France,Israel(sitting in the hotbed of terrorism),India did not join the Islamic coalition
Why did Nigeria through the back door without senate approval,what happens to the christian soldiers??.
Thank you

Ogbukwa Blessing said...

So much to read

Anonymous said...

Madame 16±6 =24. Shut 🆙.

Anonymous said...

Please just shut up, talk less and act more, u can't even advice Mr President on d consequences of some his economic actions yet u come on air to talk, talk, talk no action.All d south westerners in d cabinet are billed to fail, where Fashola? A flash in d pan I guess, where is Fayemi? He is still yet to wake up from being defeated in Ekiti.Lai Muhammed nko, he has failed to distinguish btw party politics and Governance he will soon start propaganda against his own govt.Just bunch of idiots from d southwest as Ministers all bereft and devoid of ideas. Buhari should rejig d cabinet and go for people he truly can trust and not some bunch southwestern political apologists who once participated in d looting of Nigerian nation either through their family background,friends cronies or personaly

hrm paul ojeih said...

She is asking if we are readyto b frugal. Saraki dat spent billions buying cars. Buhari dat allocated billions to aso rock and billions to Aso clinic who is bin frugal here

Vivian Reginalds said...

Word
-D great anonymous now as Vivian Reginalds

Dele Bolaji said...

Mrs kemi should be aware dat, she has an opponent in the past administration dat people respect so much. It simply means that she has to live up2 the applause I gave her wen she was appointed. Am diligently watching, so it's many Nigerians.

Anonymous said...

Infact this guy should have made all of you Information Minister. So many Lie Mohammeds everywhere.

Oluwasegun Akinbamowo said...

Little little patience. Let's see in 3 years

Anonymous said...

SEEN

I am Coonett

OSINANL said...

Incompetent woman...

Oluwasegun Akinbamowo said...

I'll see you at the debates sister. Press conferences are bull sh*t

Chinedu Jerry said...

Keep blabbing. .you better resign..by the time buhari spoil your name finish, even secondary school will not employ you as their accountant

Nailed on the bottle said...

This bingo should and get a an A-level in Mathematics before this her 'copy and paste' article. Articles do not change economic status, implement it Madam 22+6

Eze-Udemba Zuma said...

Please go away with your CHANGE. BRING BACK PDP AND OUR CORRUPTION

Anonymous said...

There is no Nation that is corruption free even USA, don't capitalise your failure as a finance minister on corruption. Since u are not in the agency that is fitting corruption leave them to do their work and do urs, madam economic upside and down. Original comment from C. E. O

Anonymous said...

Oh! Now she is talking. I was wandering if we never had a finance minister. Awaiting the remaining articles. Hopeful it would speak more to the common NiherianNigerian

Anonymous said...

Good talk....nuel

Juliet Iwuno said...

It is well! Linda take note!

Anonymous said...

Long story

Y.F.C. Omrex said...

Noticed.

Jamila Shaibu said...

Hmmmmmmmmmmm

Dennis A.K.A The emperor said...

Thought-provoking and well said madam. May God guide n lead you all towards achieving greatness for this nation again

Dennis A.K.A The emperor said...

Thought-provoking and well said madam. May God guide n lead you all towards achieving greatness for this nation again

rayzur kontractor said...

Tell buhari to implement the reduction in government officials allowances especially senators. Whose yearly incomes exceed #200million

Mr. Chill said...

Story for the gods!

No need to be broke!!! Help yourself and get paid today!! http://dollarsun.xyz/index.php?ref=131830

Anonymous said...

Good talk. Please madam let's have measurable indices. Clear cut economic policies. We need a stable FX market. Madam even those manufacturer are have problem sourcing for FX

Anonymous said...

Pls go and take lessons from Okonjo-iweala. She knew her onions. Nigeria is not Iran. What worked for Iran might not work for Nigeria. U guys need 2 re strategise cos wat u r doing is not working.

Anonymous said...

u r the bingo

Anonymous said...

Again commentators 1 and 2 are from the east

Anonymous said...


This is the best write-up I have read in the recent time.

Very focused and with a growth path.

Very practical and clear cut vision.

May God help you and your team Kemi

Anonymous said...

I have noticed consistently how people from the south eastern states (Ibo states) are very bitter and pained by this government. Why is this so? Did you really benefit from the way Nigeria was sliding and deteriorating during the last government?

Why all the negative talk? Why do you all want this government to fail? Is it tribal or religious hatred that is clouding your judgement?

It is so sad the way you all comment even highly educated igbo colleagues in my office also reason like you folks.

Anonymous said...

Nonsense. Prudence my foot. Yeah All should start with thy self - The amount of budget channeled to maintenance of Aso rock does not reflect these cheap talk!!

Anonymous said...

So now I understand why your Oga has said no more fx for education abroad.....he has seen what a waste it was to spend £ on his Minsiter of Finance!! We have suffered in this country!!

Anonymous said...

My greatest fear is for Nigeria to slide back to what it used to be in the 90s. In as much as I appreciate your informed opinion Kemi, what is most pertinent at this period is finding ways to ensure that there is balance in the way we implement the change agenda without necessarily impoverishing the citizenry more because as it now the govt. seems to be causing more damage than repairing. If this is what is seems like but not the reality then there may be need to re-orientate the people so we know what is actually going on. I think the govt is getting to the critical point where the public impression of it is about to change whether for bad or good the govt will determine this.

Crystal said...

NIGERIANS HAVE ENTERED A ONE CHANCE BUS

Think£wice said...

This vacuous article does not inspire confidence one bit albeit written by a surrogate. Would be interesting to know what Soludo makes of this junk.

Anonymous said...

I think we should give this government time to settle down and let them implement their policies. This government is just about 8 months old. I believe they have clear cut vision and we need to give them the chance.

Oyenike Tolulope said...

I support her take on investment in infrastructure which is a the potential in the non oil sectors. We have focus too much on Oil, with the fall of Oil price, I tell you oil it not enough. Lets give this government the chance to work and lets not be too stereotype

Anonymous said...

Any government that cannot provide electricity is a lair.. Nd dis government is foolin itself.. I don't see anywhere in d world where the economy is expected to grow nd ppl manufacturing without electricity.. Buhari aka highest scam

Olawoyin Maria said...

I sincerely ask that we give her the chance and reflect on the points in the article while hoping all our efforts and sacrifices will be worthwhile.

Anonymous said...


Some people just write without thinking... Madam Finance minister just inform you the through position of things and you here bad mouthing..... Cant you just give the poor woman a chance to do is job... why cursing her? I pray for our generation..

otee elizabeth said...

Seen

Anonymous said...

Anon not just people from the east, I am from Ogun state and I am against this new Government, they have caused more pain and harm than good

Anonymous said...

Anon 12.20 if u come from d dark,i wld address u...
I am igbo. I dont stomach pettiness.. i dont harbor nepotism nor ethnitism..
You generalize us next time,i go tidy your f... up...

Chief Priest
Anon spirit world..

Peace nwadire said...

They should shut up and get to work, we are tired of listening to this unending stories pls, if you are not competent you rather resign and bring back okonjo iweala to help you pls. Story for the gods

Ify Chude said...

Like seriously?

Head Future said...

We have soo many cluesless Nigerian citizens. And it is funny honestly that some people don't understand what the present administration is fighting at the moment......

Head Future said...

It is funny most Nigerians do not understand what the present administration is fighting.....

Head Future said...

We have soo many cluesless Nigerian citizens. And it is funny honestly that some people don't understand what the present administration is fighting at the moment......

Wale Kamal said...

I strongly believe and agree to this madam let us all make the sacrifice, noting positive will happen in life if you are not ready to endure

Anonymous said...

Buhari does not care about the opinions of the average Nigerian. Especially his ministers. He's a sole admistrator doing what he likes. The senators are toothless Bulldogs that bow and obey and the country is worse off for it.
Madam finance is telling us to be more frugal, yet the leaders are living in excessive luxury, luxury cars, luxury homes, luxury schools abroad... All this luxury, paid for by the same Nigeria, to make them comfortable enough to lead the impoverished, jobless and frustrated masses...
And in this state of abject nonsense, madam Finance is saying the masses should 'be more frugal...' Smh

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