Plans are drawn to make a better economy but will the plan be followed or thrown into the cupboard.
Mrs. Kemi Adeosun, the Finance Minister has set out government’s plan
to reset Nigeria’s economy with struc-tured borrowing, targeted
investment and diversified growth.
Speaking at a special event hosted by the Lagos Business School, she
said: “We have inherited a set of conditions that requires us to refine
how we collectively work towards ushering in a new era in Nigeria.”
Pointing to the impact of falling global oil prices on the economy,
Adeosun said: “In the past, we had the means but not the will. Now we
have the will but we no longer have the money to invest. The safety
blanket of oil has been ripped away, laying the poverty of Nigeria’s
institutions bare.”
According to her, government has spent too many years tinkering at
the edges of her institutions, infrastructure and our economy and that
the mistakes and misjudgments of the last 40 years have set the clocks
back by decades.
Setting out the government’s blueprint for growth, Adeosun said: “We
must collectively adopt a blueprint that equips the future generations
to be creative and dynamic, that allows us to articulate a vision of a
Nigeria, with a strong educational foundation; rich in depth of
knowledge with a breadth of skills, an expansive infrastructure capable
of servicing the needs of Nigerians”.
She described it as an “expansionary budget for investment and
growth. We must find the money, and create a system that enables
targeted expenditure, based on the nation’s priorities. This expenditure
will be efficient and impactful, focused on creating wealth for the
majority.”
Outlining N1.8trillion in borrowing to invest in the priorities of
Transport, Roads, Housing, Power and Health, the Minister said: “We are
committed to a countercyclical budget expenditure model. This has been a
success in other nations, offsetting the risk of recession and creating
an economy which is not based on either fragile consumer spending or
over-reliance on oil.”
The Minister used her presentation to set out the four pillars of the
economic plan which include to stimulate economic growth to achieve a
real Gross Domestic Product growth of 4.2 per cent in 2017; reduce the
cost of governance and strengthen institutions to combat corruption
extract efficiencies in public service; increase government expenditure
on infrastructure and fund the budget deficit and negative trade balance
cost effectively.
She said the targeted outcomes included substantial increase in gross
capital formation; acceleration of GDP growth and infrastructure
development to unlock economic growth.
However, the Minister warned those thinking the borrowing would open
the door to renewed fiscal indiscipline that she planned to continue her
“aggressive programme of fiscal housekeeping”.
She said: “We must safeguard this borrowing, ensuring that the
wastage within the existing systems are firmly addressed. We cannot
mortgage our future based on a system that has failed us for
generations. We must be careful in our borrowing and prudent in
utilisation.”
She added that the Minister spoke to the hard working men and women who run Nigeria’s vital small and medium sized companies.
She said: “We are a nation of entrepreneurs, and our entrepreneurs
need reliable infrastructure, skilled employees and transparent systems
and regulation that support them as they grow. We are introducing sound
policies and robust systems that will benefit the micro, small and
medium enterprises.”
She said: “With courage, discipline and open minds we begin our
journey to build an economy whose resilience is not controlled by oil
prices, but by our determination to reset the economy and finally give
our people the chance they deserve.”
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