On Thursday 21st July, 2016 the Honourable Minister of Finance Mrs. Kemi Adeosun briefed the Senate on the Monetary/Fiscal Policies adopted to salvage the current economic situation. It would be recalled that the Minister had been invited upon a resolution of the Senate on 25th May, 2016 to appear before the Senate on Wednesday 20th July, 2016 but she was unable to attend the senate session.
The Minister of Finance noted that Nigeria was undergoing tough times economically. She adduced the reason for this as a decline in government revenue and over reliance on oil. Mrs. Adeosun said the country was technically in a recession with a drop in oil price to $27 per barrel leaving government with little to meet its basic obligations. She spoke on the need to diversify and invest in infrastructure in order to enhance economic growth. She pointed out that funds were being released to key areas such as Agriculture, Transport and Works (roads) in a bid to stimulate economic activities. She explained that the government had inherited little in revenue reserve and a huge debt from the previous administration.
Speaking on constituency projects she explained that considering that constituency projects are targeted to address specific community needs they would be implemented once the funds are available. She also added that the new foreign exchange policy introduced by the Central Bank of Nigeria (CBN) had its merits such as correction of the propensity to import.
In addition the Hon. Minister said that the Federal Government saved N60 billion monthly through a cut down in recurrent expenditure. The Honourable Minister highlighted that government cannot rely on its spending alone as this will not resolve all problems; as such actions had been taken to capitalize, attract foreign investment and private funding. She stressed that government revenues were looking stronger with increasing revenue from the Federal Inland Revenue Service (FIRS) and Customs.
She concluded by stating that if the path of discipline and accountability were followed the economy would be strengthened. She also urged legislative assistance with the amendment of Universal Basic Education Commission Act 2004 as well as prompt oversight to ensure government funds were spent effectively and maximally.
