http://www.punchng.com/news/oil-slump-fg-unveils-austerity-measures/


The minister stressed that even though the drop in oil prices was a serious challenge, it was also an opportunity for the country to refocus efforts towards the non-oil sectors in preparation for a future with less oil revenue.

As part of the efforts to reduce expenditure, she said international travel within the public service would be severely curtailed, adding however, that critical infrastructure projects would not be affected because they were key to economic growth, development and job creation.


She stated that the decline in oil prices had given additional impetus to the Federal Government’s focus on increasing non-oil revenues.

In this regard, the collection target for the Federal Inland Revenue Service, which has been working with Mckinsey to increase receipts will be revised upwards for next year.

Se said the country had recorded good success in reaching the initial target set this year of N75bn; noting that so far N65bn of this had been collected.

For 2015, the minister put the revised target at N160bn above the 2014 base.

Okonjo-Iweala also unveiled plans by the government to introduce what she called “tax on luxurious goods,” stating that this was a part of measures aimed at increasing revenue from non-oil sources.

She said that users of luxurious items, such as private jets, yachts, alcoholic beverages and expensive cars, would be required to pay special taxes for such goods.

The decline in the price of crude oil may have started taking its toll on Nigeria as the Federal Government on Sunday announced measures aimed at cushioning its impact on the economy.

The Minister of Finance and the Co-ordinating Minister for the Economy , Dr Ngozi Okonjo-Iweala, announced this Abuja while addressing journalists on the Federal Government’s response to the crisis in Abuja on Sunday.

The measures which will see Nigerians paying tax on luxury goods, comes barely six days after President Goodluck Jonathan formally announced his intention to contest the February 14, 2015 election.

Okonjo-Iweala, in company with the Director-General, Budget Office of the Federation, Dr Bright Okogu; the Accountant-General of the Federation, Mr. Jonah Otunla; the Acting Chair, FIRS, Alhaji Kabir Mashi and other top officials, told the journalists that the nation would be experiencing a challenging time owing to the global fall in oil prices.

Austerity :aka

You suffer, we enjoy

............and continue stealing.

For those who are not well versed,Austerity goes like this.
1There is a downturn In the economy.
2 the money going out is more than what is coming in.
Basically spending more than you earn( akotileta).

The sensible thing to do,
Cut waste,tax the wealthy and only concentrate on the essential.
Waste like constituency projects, Abuja tower,closing down or handing over all the rubbish glorified landing strips("airport ",reducing the number of ministries and getting rid of political jobbers like the assistant to the assistant deputy assistant to the minister of education.



What they willactually do :

1 Nothing about the waste and corruption
2 remove Subsidy but continue to award Subsidy
3 borrow borrow but it will all end in foreign banks
4 the number of private jet will continue to increase
5 they will start selling government property to themselves for peanuts( refineries, railways, government buildings, airports etc
6(..........put anything want in this space...............


What will happen
1 your petrol prices will rise, expect N150 per litre.
2 expect to pay more than N200 for $1
3 Everything imported into the country will get more expensive like rice( that one for ekiti). Since we make almost nothing,you will become poorer.fori instance, most nigerians are more or less 21% poorer than they were 2 months ago due to the recent devaluation alone. You will be paying 20 naira more for every N100 you spend.
4 predictable,the useless civil service will go on strike
5 every other thing after number 4

“Panic is not a strategy. It’s important that our strategies are based on facts and a clear understanding of both the strengths of the economy and the challenges posed by the drop in oil prices which is currently at $79 for our premium Bonny Light Crude.

“The drop in oil prices is a serious challenge which we must confront as a country. We must be prepared to make sacrifices where necessary.

Okonjo-Iweala noted that the reduction in the price of oil might continue but gave assurance that the government was fully prepared to ensure that the economy was not worse-off.

To this end, she said from the $4.1bn (N656bn) in the Excess Crude Account, the government would be withdrawing $2bn (N320bn) between now and the end of this year to take care of critical expenditure.

She said, “We will work in such a way that we won’t deplete the ECA because we have to leave something for next year but we might go to tap about a half of it ($2bn) or slightly less than half to be able to meet expenditures that are crystalising at the moment that we need to make.”

Meanwhile, financial experts have said that Nigerians should be ready for a harsh economy in the nearest future as a result of the continued fall in the prices of oil.

The experts, while reacting to the measures adopted by the Federal Government, stated that the decline was only the beginning.

A renowned economist and Chief Executive, Financial Derivatives Company, Mr. Bismark Rewane, stated that the step by the government was a good start, but wondered if the measures would actually cushion the impact of the falling oil prices.

He said, “That is a good start. The most important thing is the fact that the government has come to accept that it has to do something with respect to the falling oil prices. What we are seeing now is not a short-term phenomenon. Whether the therapy is adequate is another issue. But I think it is a good move and it has not ruled out other moves.

“On the $2bn withdrawal from the ECA, I don’t think that will make any impact. The reality is that we have to look at what is important. And what is important is that the Nigerian government has come to terms to the fact that it has to start austerity. So it is encouraging and this is the beginning of a number of steps to be adopted.”

On whether there might be more measures, Rewane said, “Certainly, this is just the beginning. And I will like to say that it will be good for Nigeria to accept the reality on ground presently.”

Also, a former President, Association of National Accountants of Nigeria, Dr. Samuel Nzekwe, said the government’s resolve to adopt austerity measures was not surprising.

He said, “About 80 per cent of our earning is from oil and so it is not a surprise that the government is adopting austerity measures considering the fact that oil prices are falling. This is actually the beginning o things to happen. Apart from imposing tax on luxuries, they should look at how to diversify the economy by creating enabling environment so that industries can thrive.

APC comment on the new Austerity measures:

The All Progressives Congress, through its National Publicity Secretary, Lai Mohammed, described the proposed austerity measures as a reflection of the massive corruption inherent in the Jonathan-led Peoples Democratic Party government .

It argued that it was unfair for the Federal Government to subject Nigerians to austerity measures after frittering away the “petrodollars accruable to the country in the last 15 years.”

The APC said, “This country enjoyed high crude oil prices in the last 15 years. What has the PDP-led Federal Government done with the money in the last 15 years? They simply frittered the money away in massive corruption and misgovernment.

“They now want Nigerians to pay for their corruption and misdirection. Are Nigerians not already under austerity measure? They only want to impoverish us the more. Their ultimate aim is to devalue the naira; that’s their ultimate destination and this is very unfair.

“To make Nigerians, who did not participate in corruption, to suffer is not fair. What provisions have they made for the rainy days?”

Comments from Nigerians on Punch newspaper blog:

Ever since the Federal Government has beenrealizing excesses from the crude oil.....nobody knows how much the bench mark was. Now that the bubble is almost burst.....the Federal Government knows that Nigerians are still in existence and decide that it is time to tax them. In the Minister's(Okonjo-Iweala) briefing, she did not mention the hefty wages of the executives, legislatures and the excessive white elephant projects that is being executed to siphon money into privileged and corrupt politicians. None of them will ever take pay-cut including her honorable self. AUSTERITY MEASURE MY FOOT. GOD KNOWS HIS PEOPLE OOOOOOOOOOO.
Ayodele Sanni

Ayelala
Back to 1983.Except this time,there are thousands of corrupt, private jet riding,parasites and leeches


lanre
i dont know how we nigerians allowed madam okonjo to take us for a ride for so long. she's just a con, pure and simple


Bostonceltics
It shows how dishonest and visionless our leaders are.If the youths and Nigerians don't take their destiny in their own hands now the sooner this useless leaders will destroy Nigeria completely.

How can a nation so depend on oil without looking into other sectors . Dubai was once a desert, a leader woke up one day and had a vision for the country and his people and made it today the number one tourist destination in the world.India, china Brazil,malaysia are a force to reckon with in the world because of their leaders

What is the vision of our leaders for Nigeria, Austerity, lack of electricity, stealing and corruption. boko haram etc

Nigeria is the number one country where you go to bed as a Nigerian and wake up the next day as Bill Gate and no one will ask you any question. What did they do when we had surplus, now the price is falling and Nigerians are the ones to pay the price. This is really unfair

According to Dr. Okonjo-Iweala, there would be no more foreign travels by civil servants unless for purposes that could be fully defended as absolutely necessary.

In addition, foreign training programmes would be stopped and all trainings done in-country.
The exception, she said, would be to secure foreign sponsorship for such travels and training abroad.

The Minister added that the federal government would work to eliminate duplication among the functions of the Ministries, Departments and Agencies, MDAs, by working on the Steve Oronsaye Report.

She, however, observed that since the MDAs to be re-aligned were created by law the National Assembly would be required to repeal such laws before any administrative step could be taken.

Luxury Goods Tax
Part of the immediate steps to cushion the fall in oil revenue, the minister said, was to significantly increase non-oil revenue in the country, as she announced an aggressive tax administration in which, private jets, yachts, Champagne and a list of others to be announced would be taxed.

- See more at: http://www.vanguardngr.com/2014/11/fg-introduces-austerity-measures/#sthash.NXFJmECq.dpuf

The minister, who stated this in Abuja at a briefing, stated that stringent measures would be adopted to stabilise the economy, stressing that this would include cutting excesses in all civil, public services, strict management of all parastatals, as well as addressing overlapping responsibility of agencies and parastatals.

“The response is a mix of measures designed to boost non-oil revenues further, plug loopholes and waste and cut unnecessary expenditures in order to cope with the situation,” the statement added.

Apart from the benchmark, the government added that the Medium Term Expenditure Framework (MTEF) would also be revised in line with the current trend.

In the statement, the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, declared that the Federal Ministry of Finance had been keeping a close eye on movements in global oil prices because of the critical importance of oil as the country’s most important source of revenue.

http://tribune.com.ng/news/top-stories/item/21734-as-oil-prices-fall-2015-budget-to-be-reviewed-okonjo-iweala-to-reduce-budget-benchmark-to-73-expenses-in-civil-public-services-to-be-cut

the only people that are going to be affected by these austerity measure are the elites. So I don't know why people are all up in arms about it.
These means the decline in oil is making our leaders wake up to their responsibilities.

http://businessdayonline.com/2014/11/as-oil-trends-lower-nigeria-adopts-measures-to-stem-impact-on-economy/#.VGlOLYe9KSM


Government would tap up to half of the Excess Crude Account which now stands at $4.1 billion before the end of the year, to be able to meet up with expenditures that are crystallising at the moment, the finance minister said.

The Nigerian Government is working out some surcharges on certain luxury items to make the country’s rich pay a little bit more, as part of several quick measures to ramp up revenue shortfalls, Ngozi Okonjo-Iweala, co-ordinating minister for the economy and minister for finance, announced yesterday.

The government was adopting a multi-pronged strategic response to mitigate the adverse effects of the decline in global oil prices, which have seen a significant drop in oil revenues for Nigeria since June, Okonjo-Iweala said at a special press conference in Abuja.

Part of those measures is also that Medium Term Expenditure Framework (MTEF) and the Budget 2015 proposal to the National Assembly have been revised, as government now proposes a benchmark of $73 dollars per barrel to the National Assembly, compared to the earlier $78. Government spending would also be tightened, especially on foreign travels and trainings, going forward.

“The idea behind the surcharge is that those Nigerians who are well off would be made to contribute a bit more to making the government coffers more robust, so that they share a bit more of the pain,” the minister told journalists in Abuja.

A lot of suffering awaits the masses this Christmas. They have refused to reduce their bogus salaries and allowances and the savings they have made from subsidy due to the reduced price of crude oil will be eaten by them as well while they raise taxes for us.

Nigerians cannot be fooled forever!!

We should expect multiple strike actions soon

We are in a fix now

“The drop in oil prices is a serious challenge which we must confront as a country. We must be prepared to make sacrifices where necessary. But we should also not forget that we re­tain some important advantages such as a broad economic base driven by the private sector and anchored on sound policies. Our strategy is to continue to strengthen the sectors that drive growth such as agriculture and housing while reducing waste with a renewed focus on prudence,” she noted.

Recalling that in the last three years, the executive, in its discussions on the budget with the National Assembly has consistently advocated prudence and a low budget benchmark to encourage more savings. She stressed that even though the drop in oil prices is a serious challenge, it is also an opportunity for the country to focus on greater diver­sification and refocus efforts towards the non-oil sectors in preparation for a future with less oil revenue.


http://sunnewsonline.com/new/?p=91265

davitogreat:
the only people that are going to be affected by these austerity measure are the elites. So I don't know why people are all up in arms about it.
These means the decline in oil is making our leaders wake up to their responsibilities.

They are going to pass on the cost to you- the poor!

I think it is high time government reduce. Their allowances, this woman with her policies that affects the poor only. Meanwhile GEJ will be eating with 1billion naira? This administration is a joke

Thank God I have dual citizenship

na wa o.

Challenges have always brought out the best in people. Lets see how we as a country can rise up against this challenge without trading blames. What has happened has happened. APC Blaming PDP won't stop the problem. Lets come together as a nation and forge ahead irrespective of our differences. Stop the blame and fix the problem. I believe the Great Giant of Africa can still stand tall among her peers. But thats only if we can come together as one Nation and fix this problem once and for all . Peace

Chai! Harmattan is here o

[size=15pt]Congratulations to BadLuck Egbere JoSatan. You succeeded in ruining the country with corruption hum forgive me , i meant STEALING[/size]

So they now want to implement orosanye 's suggestions.

So they even knew orosanye was saying the truth.

God will punish all of you.

Jonathan over bearing contingent on international travel and all his unnecessary trips abroad will suffer.

Why should we be talking about oil price fall? Our leaders are so so corrupt. Revolution is imminent. Just three months on crude fall we re already crying. If we were to be practicing true federalism parasitic state would have by now be contributing to the Nigerian economy.

Only if we all know how much scam has happened underground in petrol & kerosine subsidies at the level of nnpc & petroleum ministry, we'll know how joyless those at the helm of affair have been. It just dawn on them that the crude market is full of products & price has crashed. I only hope dat the ECA doesnt drop to zero level in the year ahead. And Iweala will still come on air to say Nigeria is not broke! dunce-led-govt.

the time for revolution is now. God punish PDP and APC all crooks and looters

we are fully prepared

Buh meanwhile,gej wil continue eatinq wit 1bn...with al d natural nd human resources,God wil neva 4qv niqeria if we fail to qet 'there'!

Instead of focusing on exploiting the non-oil endowment of the nation they feel the best to revitalise the federal pocket is by enforcing excessive tax.