The Nation Newspaper

Tag: Kemi Adeosun

  • FG to redefine govt spending for maximum impact – Adeosun

    FG to redefine govt spending for maximum impact – Adeosun

    The Federal Government is set to redefine spending in order to get maximum impact.

    A statement from the ministry of finance said the Minister of Finance, Mrs. Kemi Adeosun, Tuesday made the disclosure in Ogun state that the current administration is determined to ensure that going forward; government spending in Nigeria will achieve maximum impact.

    The finance minister noted that government spending in previous years had been ineffective and not directed in the right areas; the Minister reiterated the focus of the government on investing in critical infrastructure to enable growth.

    She highlighted the fact that Nigeria is not an oil economy stressing that although oil accounts for 70 per cent of revenue, it constitutes only 13 per cent of our gross domestic product. “By fully harnessing the potential of our non-oil sectors, we can create a more diversified and resilient revenue base which would provide the necessary fiscal buffers to insulate the economy against the impact of external shocks in the future,” the Minister stated.

    Adeosun also spoke on the need for the Federal Government to play its role so that states can focus on their core functions. According to her, The Federal Government will level the playing field by removing rent-seeking opportunity to unleash entrepreneurial activity and job creation, adding “We must engage in economic patriotism to support local job growth.”

    The Minister assured that the government is fully aware of the current economic challenges facing individuals and businesses and is working very hard on resetting the economy on the path towards achieving sustainable growth. She added that better days are ahead with President Buhari’s resolve to check corruption and wastage.

     

  • FG suspends deduction of states’ loans

    FG suspends deduction of states’ loans

    The National Economic Council (NEC) meeting on Thursday suspended further deduction of state governments’ loans from their accounts maintained in the Federation Account.

    Many of the states have taken loans which are repaid through monthly deductions from funds accruing to them in the Federation Account.

    The Minister of Finance, Kemi Adeosun, said state governments’ loan repayment to the Federation Account was deferred to allow states have enough money in their coffers to pay workers salaries and meet other obligations in their states.

    She spoke with State House correspondents at the end of the NEC meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

    She was accompanied by Nasarawa State Governor, Tanko Almakura and Corp Marshal of the Federal Road Safety Commission (FRSC), Oyeyemi Boboye.

    According to her, the current economic situation in the country necessitated the deferral of the loans repayment.

    She said: “On the update of the financial situation of the states, it was discussed extensively that currently the federation account receipt are among the lowest that has been seen in recent memory. We are looking at N299 billion this month and that is because of the very low oil prices that was recorded in January and February.

    “If you remember oil prices went as low as $28 and $31 per barrel and of course that has led to a very low federation account as a result of this, I approached the President and the governors that we defer the loan deductions from the federation account entitlement.

    “The aim of this is to ensure that we support the state governments throughout this difficult period in order for them to meet salary obligations. The government is very committed to stimulating the economy and recognizes that ability of states to meet salary obligations is a very crucial in getting the economy moving again.”

  • Nigeria’s economic challenge is surmountable — Adeosun

    Nigeria’s economic challenge is surmountable — Adeosun

    The Minister of Finance, Mrs Kemi Adeosun, says Nigeria will overcome its economic challenges without taking loan facility from the International Monetary Fund (IMF).

    In a statement issued in Abuja on Saturday, Adeosun made the observation at the ongoing Spring Meetings of the IMF-World Bank in Washington DC in response to why the government has refused to apply for IMF loans.

    The statement quoted the minister as saying that Nigeria was adapting to its new realities by implementing fiscal policies to steer the country back on track for stable growth with a diversified economy.

    Signed by the Special Adviser to the Minister on Media, Mr Festus Akanbi, the statement said the minister expressed optimism that sound fiscal policies and investments would boost Nigeria’s economy by 2017.

    Adeosun insisted that what the country was passing through was surmountable because government was already applying a “cocktail of measures to address the problem.

    “Nigeria is not sick. The real vulnerability in the Nigerian economy is over-dependence on a single source of revenue; oil.

    “We have resolved to build resilience into the country’s economy to hedge against future oil shocks. This is because dependence on oil brings about vulnerability and laziness.

    “So, we are doing a combination of things to diversify our economy, with revenue mobilisation to enable sufficient investment in developing the non-oil sectors.

    “We have great opportunities to reset the Nigerian economy and ensure that as we go forward, growth will be in a sustainable manner so that we won’t be vulnerable to oil price fluctuations.’’

    Adeosun said with a truly diversified economy the government would have enabled opportunities for wealth creation that would have flow down to every Nigerian.

    “The compelling business case in Nigeria is that the fundamentals remain very strong, a teaming, young growing population, rich in resources and with a government determined to finally get it right.

    “The great thing is that long term investors recognise this and understand the difference between short term and long term issues and the case for Nigeria persuades one to plan for the longer term opportunities,’’ the statement quoted her as saying.(NAN).

  • Photo: What are the ministers talking about ?

    Photo: What are the ministers talking about ?

    VP PROF OSINBAJO CHAIRS FEC ON BUDGET 3. R-L; Minister of Defence Brig general DAN-Ali, Minister of Finance, Mrs Kemi Adeosun and Minister ofCommunications, Chief Adebayo Shittu during an emergency Federal Executive Council (FEC) meeting looking into the submitted 2016 budget at the State House in Abuja. PHOTO; SUNDAY AGHAEZE. APR 8 2016.
    VP PROF OSINBAJO CHAIRS FEC ON BUDGET 3. R-L; Minister of Defence Brig general DAN-Ali, Minister of Finance, Mrs Kemi Adeosun and Minister of Communications, Chief Adebayo Shittu during an emergency Federal Executive Council (FEC) meeting looking into the submitted 2016 budget at the State House in Abuja. PHOTO; SUNDAY AGHAEZE. APR 8 2016.
  • FG to inject N350 billion to economy

    FG to inject N350 billion to economy

    Based on the soon to be passed 2016 Budget, the Federal Government intends to inject N350 billion into the Nigerian economy in the next few months.

    The money is intended to revive significant activities back into the economy.

    The Minister of Finance, Kemi Adeosun disclosed this to State House correspondents at the end of the two-day National Economic Council (NEC) Retreat at the Presidential Villa, Abuja.

    It will partly be used to offset contractual debts in the country.

  • FG removes 23,846 ghost workers from payroll

    The Federal Government says it has removed 23,846 non-existent workers from its payroll.

    Consequently, the salary bill for February 2016 has reduced by N2.293 billion when compared to December 2015 at which time the BVN audit process commenced.

    A statement from the Federal Ministry of Finance on Sunday said “this figure represents a percentage of the number of non-existent workers who had hitherto been receiving salary from various ministries, departments and agencies.”

    The statement added that further investigation of other suspected cases will continue in conjunction with the Economic and Financial Crimes Commission (EFCC).

    ” The removal of non existent workers from federal payroll and the savings on salaries was made possible because of the ongoing BVN-based staff audit and enrolment to the Integrated Payroll and Personnel Information System (IPPIS)”, the statement said.

    The Federal Government is also making efforts to recover “salary balances in bank accounts as well as any pension contributions in respect of the deleted workers. This involves active collaboration with the concerned banks and the National Pension Commission (Pencom).”

  • Reps to meet Adeosun, Udo Udoma on budget

    Reps to meet Adeosun, Udo Udoma on budget

    The House of Representatives Committee on Appropriations will hold special budget defence session with Minister of Finance, Kemi Adeosun and Minister of Budget and National Planning, Udoma Udo Udoma, on the 2016 budget proposal.

    Also invited by the committee are – Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, Accountant General of the Federation (AGF) and the Director-General in the Budget office of the Federation.

    The Chairman, House Committee on Appropriations, Abdulmumin Jibrin, who spoke on the presentation of the 2016 budget so far, revealed that all budget proposals of the Ministries Departments and Agencies (MDAs)  presented by House standing Committees have been harmonised with their Senate counterparts.

    He said: ” By tomorrow ( Friday) we will finish taking the reports, we have agreed that we will invite the Minister of Budget and Planning, Minister of Finance, the Accountant -General of the Federation, the Director of Budget Office and Central Bank Governor and engage them extensively on the entire budget.

    “We also have pending issues on the 2015 budget, so they have to come with 2015 budget performance and then we will go into special session,” Jibrin stated.

    The lawmaker also directed the clerk of the committee to liaise with the office of the Clerk of the House to access the members’ data base for easy dispatch of message to all the 360 members and various committees on the February 25 deadline for final submission and consideration of the MDAs budget.

     

  • Adeosun explains strategy for Nigeria’s foreign loans

    Adeosun explains strategy for Nigeria’s foreign loans

    The Minister of Finance, Mrs. Kemi Adeosun, yesterday gave further clarifications on the strategy for foreign loans being explored to fund the 2016 budget, which is undergoing approval by the National Assembly.

    The minister, in a statement, explained that the overall objective is to provide the lowest possible cost of funds to finance capital projects proposed under the government’s plan to stimulate the economy. These capital projects include power, transport, road, housing and others.

    In the statement endorsed by Special Adviser to the Minister on Media Matters, Mr. Festus Akanbi, the minister explained that options with multi-lateral agencies including the World Bank and African Development Bank (AfDB) are being explored. Multilateral agencies provide loans on concessional terms, which include low interest, moratorium before repayment and long tenor.

    The second funding option being explored includes export credit agencies such as China Exim Bank. These funds are also concessional and are tied to specific capital projects.

    She said the need to invest in infrastructure to stimulate the economy and the long-term payback period of capital projects demands that the lowest cost of funds be obtained.

    She stated that the balance of foreign borrowing required will be raised in the Eurobond market at commercial rates of interest.

    The minister explained that by blending these different sources of funding, the overall cost of funds will be maintained at the lowest possible level.

    “As far as possible, our foreign borrowing will be tied to specific capital projects. A number of these projects are revenue generating which will be used to fund the loan repayments,” she was quoted as saying in the statement.

    The strategy of pursuing increased foreign borrowing is designed to ensure that the Federal Government does not “crowd out” the private sector in the domestic market.

  • Adeosun explains Nigeria’s borrowing plans to fund capital projects

    Adeosun explains Nigeria’s borrowing plans to fund capital projects

    The Minister of Finance, Mrs. Kemi Adeosun, Monday revealed government’s strategy for foreign loans that will be used to fund the 2016 budget.

    According to a statement from the ministry issued by the Special Adviser to the Minister on Media Matters, Mr. Festus Akanbi, Mrs Adeosun disclosed that one of the options the federal government will explore will be to get credit from multi-lateral agencies like the World Bank and African Development Bank (AfDB).

    “These Multilateral agencies provide loans on concessional terms, which include low interest, moratorium before repayment and long tenor.”

    “The second funding option being explored includes Export Credit Agencies such as China Exim Bank. These funds are also concessional and are tied to specific capital projects,” the statement said.

    The balance of foreign borrowing required will be raised in the Eurobond market at commercial rates of interest.

    The Minister explained that by blending these different sources of funding, the overall cost of funds will be maintained at the lowest possible level, stating that “as far as possible, our foreign borrowing will be tied to specific capital projects. A number of these projects are revenue generating which will be used to fund the loan repayments.”

    These capital projects include power, transport, road; housing etc. These capital projects include power, transport, road, housing etc.

    The strategy of pursuing increased foreign borrowing is designed to ensure that the Federal Government does not “crowd out” the private sector in the domestic market.

    It will be recalled that the Federal Government presented to the National Assembly a budget of N6.08 trillion with a N2.2 trillion deficit and a N1.8 trillion borrowing requirement.

  • Nigeria must harmonise monetary and fiscal policies – Minister

    Nigeria must harmonise monetary and fiscal policies – Minister

    Monetary and budgetary policies in Nigeria need to be “harmonised” to boost the economy, the country’s Minister of Finance said on Friday, adding that moves towards this can be expected.

    Nigeria has just unveiled a large increase in budget spending but its currency, the naira, is effectively frozen after the central bank last year imposed a number of restrictions aimed at conserving foreign exchange reserves.

    The result has been a widening gap between the official and black market rates. While Nigeria’s fellow oil exporters such as Angola and Russia have allowed their currencies to depreciate, the naira exchange rate is reckoned to be well above fair value.

    Investors as well as the International Monetary Fund have called on Nigeria to allow the naira more flexibility and the central bank last week eased some restrictions.

    Speaking to Reuters on the sidelines of the World Economic Forum in Davos, Kemi Adeosun said monetary policy was not under her purview but added:

    “The central bank (governor) has started to outline some of the changes he is making to increase flexibility. It isn’t my purview but ultimately monetary and fiscal policy must reinforce each other to pull the economy in the same direction, so I am expecting moves towards harmonisation.”