The Minister of Finance, Dr. Ngozi Okonjo-Iweala, on Thursday said the country would this month begin to feel the impact of the falling global oil prices, which started in June.

Consequently, she said the country needed to brace for tougher times ahead by reviewing its expenditures and building economic buffers through budgets that would be based on modest oil prices.

According to her, sound macroeconomic management is crucial to Nigeria at this time, while also emphasising the need to plug all revenue leakages.

The minister spoke in Lagos at the Africa Financial Summit organised by the Institute of International Finance and Access Bank Plc.

“We have not seen the impact of the falling oil prices in Nigeria; it will start this month. We have to drive the non-oil revenue base to be able to weather the storm that is coming,” Okonjo-Iweala said.

She, however, said Nigeria was not alone in the coming economic storm, pointing out that a large number of African countries that relied on commodity export as the mainstay of their economies would also be affected by the global fall in the prices of such commodities.

The minister said the global fall in the prices of export commodities such as gold, iron ore and agricultural produce such as cocoa, cotton and coffee was bound to affect most African economies, which relied on commodity export as the major source of revenue.

Quoting from the United Nations Conference on Trade and Development, Okonjo-Iweala said the ratio of export commodity to total merchandise was very high in a large number of African countries.

According to her, it is 60 per cent in South Africa; 89 per cent in Zambia and Ghana; 96 per cent in the Democratic Republic of Congo; and 83 per cent in Nigeria.

She said based on the 2013 data, 70 per cent of sub-Saharan Africa’s merchandise exports went to regions that were currently facing slowdown.

Ten per cent of commodity exports from the sub-Saharan Africa go to the US; 26.5 per cent to Europe; three per cent to Japan; 21 per cent to China; and three per cent to Brazil, according to the minister.

Consequently, Okonjo-Iweala said there was an urgent need for Nigeria and other African countries to explore other means of shoring up their revenues in the face of the falling prices of export commodities.

She said borrowing to fund annual budgets would not be a better option for most African countries.

“I strongly urge other African countries to look into other directions. We need to build our economic buffers. Of course, there will be pressure to borrow in the face of falling commodity prices, but we cannot afford to borrow. There is a need to drive domestic resource mobilisation,” the minister added.
http://www.punchng.com/news/tougher-times-ahead-says-okonjo-iweala/

Hope it affects her too but we all know that is an impossibility.

Definitely.

shey una dey use us play nii?

Brace yourselves Nigerians.....Sh*t is about to get ugly!!!

I disagree with her on the issue of African nations to be affected because their economy is export base

Reasons for my disagreement

1) Most African nations export only one type of commodity which makes them vulnerable to global prices. Unlike China Japan Europe and America which have diversified their export trade to ensure that if one commodity is affected they can be most assured that others will keep bringing in wealth until that commodity price recovers.

2) Nations suffering this global oil prices are nations that export majorly one type of commodity especially oil eg Russia.

Solution


Diversify our export trade in order to keep new dollar notes flowing in. Although it might not be huge but it will be better than our present predicament.


On this I score Okonjo my heroine 50% for identifying the problem but deprive her of the other 50% for not thinking the solution through.


The solutions are

1)diversify our export trade in order to bring more dollar notes flowing in.

2) fiinance global electronic mechanical etc industries to establish their industries in Nigeria in order to prevent dollar flight out of our foreign reserve due to high demand for dollar in order to import these essential products.

ma'am, it's tough already just dat it does nt affect u nd odas.

Can anything get tougher than the shit they are already serving us.

Dr. NOI preparing your mind to embrace the result of poor economic consequences of Jonathan running a government that supports and sustain Stealing-Is-Not-Corruption. They spend so much on recurrent expenditures, looting and misplaced priorities. Executing massive looting, loans and depletion of our reserve in the days of plenty.

Now she and Jonathan is about to squeeze out a couple of Billions Off Nigerians so they can maintain their "Stealing-Is-Not-Corruption" style of Government.

This woman is confused, maybe too much working Jonathan has robbed oh her so much that she has lost her sense of integrity. A moment she will sing of economic boom in another moment she will be singing economic decline. If she still has any honour left in her she should resign and go home.

otokx:
Hope it affects her too but we all know that is an impossibility.

wicked fool

BlackTechnology:
I disagree with her on the issue of African nations to be affected because their economy is export base

Reasons for my disagreement

1) Most African nations export only one type of commodity which makes them vulnerable to global prices. Unlike China Japan Europe and America which have diversified their export trade to ensure that if one commodity is affected they can be most assured that others will keep bringing in wealth until that commodity price recovers.

2) Nations suffering this global oil prices are nations that export majorly one type of commodity especially oil eg Russia.

Solution


Diversify our export trade in order to keep new dollar notes flowing in. Although it might not be huge but it will be better than our present predicament.


On this I score Okonjo my heroine 50% for identifying the problem but deprive her of the other 50% for not thinking the solution through.


The solution is to diversify our export trade in order to bring more dollar notes flowing in.

What you didn't realize is that Russia, Saudi e.t.c all have good external reserves and would survive the storm.
In fact, Russia just 2days ago secured a $70 billion dollar gas pipeline deal to supply China. This is in addition to the $700 billion deal both country sealed about 5months ago.

http://www.foreignpolicy.com/articles/2014/11/10/xis_just_that_into_you_russia_china_natural_gas_altai_gazprom

What has the Jonathan's administration done to boost it's own reserves

The spin doctor is here again. Hear her speak, when oil prices are booming no one hears her speak that we should at least save for the rainy days but rather they will be feeding fat to the detriment of the nigerian economy. Now that the rainy days are here, she continued telling us of our impending doom occasioned by the economic recklessness. A vote for GEJ, is a vote for doom!

"There is a need to drive domestic resource mobilisation,”
How long will it take the government to realise this? Borrowing money is like postponing the evil day. It is better to face the situation and look for ways to generate revenue from within.

Tough time.ke...are also going to experience it? bullshit.

eleojo23:
"There is a need to drive domestic resource mobilisation,”
How long will it take the government to realise this? Borrowing money is like postponing the evil day. It is better to face the situation and look for ways to generate revenue from within.

I partially disagree with you on internal generation of revenue for a nation like Nigeria

Reason

Most of the electronic mechanical etc products we use are imported. We need dollars to buy these products.

If Nigeria was producing the electronic mechanical etc products we import, your view would have being the perfect solution.


So I will advice her to finance global electronic mechanical etc industries to establish their industries in Nigeria in order to prevent dollar flight out of our reserve.

Oil is now $74.28 per Barrel

maryam6:
ma'am, it's tough already just dat it does nt affect u nd odas.

spot on

point of correction mrs finance minister..... is already a tough ride for nigerians. All thanks to the clueless government you guys are running


and btw, stop compensating yourselve by listing other african countries who are most likely to face our kind of economic melt down in some few months to come. You are the finance minister of nigeria not africa mrs finance minister. smh

Tough times do not last but tough people do. Irrespective of oil price tumbling and crashing, I WILL SURVIVE IT. Will you survive it?

nikky5:


She said borrowing to fund annual budgets would not be a better option for most African countries.

Hey Misses Iwalla, you frog face b*tch, Tell that to your Clueless Master who has ridled Nigeria with debts and still continue to borrow like nigeria money is his own private fund. Rubbish!

Hmmmm, if tougher times is ahead then Nigerians are in for a doom because tougher times never reach we dy feel like ds , if things con hard nko then 9ja don parfuka b dat

nikky5:
Consequently, Okonjo-Iweala said there was an urgent need for Nigeria and other African countries to explore other means of shoring up their revenues in the face of the falling prices of export commodities.

Seriously, NOI... there was a need and yet nothing was done to cushion the effect of a probable drastic fall in oil prices; our major source of revenue. Why didn't she start the diversification of our economy since 2010?

I believe u cos u n GEJ hv Ruined Nigeria,but with God on our side, better days ahead,U are not God ma

focus7:
This woman is confused, maybe too much working Jonathan has robbed oh her so much that she has lost her sense of integrity. A moment she will sing of economic boom in another moment she will be singing economic decline. If she still has any honour left in her she should resign and go home.

why would she resign when she hasn't achieved all that IMF has sent her to do? Nkonjo isn't necessarily a corrupted woman but one on a mission for IMF and the western world.

gift01:
Tough times do not last but tough people do. Irrespective of oil price tumbling and crashing, I WILL SURVIVE IT. Will you survive it?

That's the spirit! I WILL SURVIVE IT.

ogbronx:
why would she resign when she hasn't achieved all that IMF has sent her to do? Nkonjo isn't necessarily a corrupted woman but one on a mission for IMF and the western world.

Yes, so we can go over to IMF, kneel down and beg for loan! this Misses Iwalla sef ehn.

egift:
Dr. NOI preparing your mind to embrace the result of poor economic consequences of Jonathan running a government that supports and sustain Stealing-Is-Not-Corruption. They spend so much on recurrent expenditures, looting and misplaced priorities. Executing massive looting, loans and depletion of our reserve in the days of plenty.

Now she and Jonathan is about to squeeze out a couple of Billions Off Nigerians so they can maintain their "Stealing-Is-Not-Corruption" style of Government.

You get common sense at all? Oil prices are falling worldwide and it's affecting lots of countries and you are here blaming Jonathan. Is there any post you have ever made on nairaland that you don't mention Jonathan this and that, does he give you sleepless night to this extent? You really need help