A former Minister of Finance and Managing Director of the World Bank, Mrs. Ngozi Okonjo-Iweala, on Wednesday criticised Nigeria’s current budget, saying it was tantamount to the government living above its means.

Okonjo-Iweala, who also described the fact that the country had spent billions on refineries “without tangible results” as curious asked the National Assembly to strengthen its oversight function by unraveling what went wrong with the refineries.

The ex-minister, who appeared before the Senate to defend her nomination into President Goodluck Jonathan’s cabinet, condemned the 2011 national budget which she said allocated over 70 percent of its total sum to recurrent expenditure and described it as “not good for development.”

The 2011 budget signed by the President on March 27 totals N4.485tn, out of which a whopping N2.425tn, representing 54.1 per cent, is for recurrent expenditure.

“I strongly believe that we should try as a country, as much as possible, to live within our means. Right now we need to work very hard because the budget that we have is such that the current expenditure is almost 74 per cent of the budget, therefore there is not much left for capital (expenditure). So, we need to work hard to continue to implement fiscal policies that will enable us to tackle the various challenges in the economy, while at the same time living within our means.”

She counseled Nigerians to receive non-interest banking “without a lot of emotions,” arguing that it was simply another form of banking.

While lauding the CBN’s new policy on cash withdrawals, Okonjo-Iweala warned, “We have to be careful so that people don’t start keeping money under their mattresses and then stop taking their money to the bank.”

PUNCH NEWSPAPER

www.punchng.com/Articl.aspx?theartic=Art201107073122146

I have one observation where she said we shiould build more refineries.

What is the scorecard on the ones we currently have? Its possible that we need better efficiency on the existing ones to generate more revenue and jobs and save on cost of adding more, which could add to the inefficiency, plus carbon emissions penalty.

Blame Aganga, the guy knows nothing.

It seems these senators use this screening platform as an avenue to douse their ignorance. See how they're throwing related and unrelated questions to the woman.

I don't agree with her on subsidization though.

Obiagu1:

Blame Aganga, the guy knows nothing.

You are a cretin! What type of development did Nigeria witnessed under your clueless iweala when she was the minister for finance. You ibos always amazes me with your cluelessness

Wonderful woman.

Comments:
1. I have no opposition to non-interest banking, i have opposition to islamic banking.
2. It is news to me that the Nigerian Ports Authority doesn't remit its revenue to the FG. Customs nko? Very shady.
3. She is right about the stupid CBN banking limit policy. Looks like our suspicions of the incompetent Sanusi were correct.
4. I agree with her on the subsidies.

Brilliant submission! Hmm. . .clash of the titans between world bank and IOC.

I pray that Jonathan will give her all the necessary support needed for her to succeed. I wish her good luck in Goodluck government.

But guys is it not exactly what El-Rufai wrote and got arrested. Shamefully many of you supported all the efforts mated out to stop him, just because "hay, he is not from my tribe" - some of us are pathetic.

Go on girl and El-Rufai, we will get there!

Make Jonathan kuku step down for this woman since she'll be the one doing all the job.

afam4eva:

Make Jonathan kuku step down for this woman since she'll be the one doing all the job.

I agree. Infact, it looks like GEJ is on course to be a ceremonial president. Better to have people who seem to know what they're doing. I would've switched off from GEJ's government, had Okonjo-Iweala declined to take up the post.

REFRESH YOUR MEMORY:

In one of the text messages, which was also sent to our correspondent, the PDP was derogatively described as ‘Poverty Development Party’, whose death had come with the result of the elections. The text message reads, “With gratitude to God Almighty for a live not well spent, we regrettably announce the passing away of ‘Poverty Development Party’ in South- Western part of Nigeria on Tuesday, April 26, 2011.

“The party is survived by Dimeji Bankole, Iyiola Omisore, Iyabo Obasanjo, Olagunsoye Oyinlola, Bode Olajumoke, Kamarudeen Adedibu, Jumoke Akinjide, Gbenga Daniel, Adebayo Alao-Akala, etc. Final burial comes up at Tinubu Square in CMS on May 29. Dress code: Broom.”

For detail, go to today's Punch: http://www.punchontheweb.com/Articl.aspx?theartic=Art201107071531179

she doesnt know anything afterall she hasnt been in this country, she can just open her mouth and say what she likes. All her family are out there so if they start the trouble they leave us here and run back

she doesnt know anything afterall she hasnt been in this country, she can just open her mouth and say what she likes. All her family are out there so if they start the trouble they leave us here and run back


That is bitter truth.

MORPHYLEE:

she doesnt know anything afterall she hasnt been in this country, she can just open her mouth and say what she likes. All her family are out there so if they start the trouble they leave us here and run back


That is bitter truth.

That is [b]YOUR [/b]bitter truth.

Other see it as blatant falsehoods.

What's all these Ngozi Okonjo-Iweala worship by ndigbos?

Is this her first time as minister? Is she the President? Every thing she say u guys report it here as if she is your oracle of Ifa or something.
Budget is not good? Ok aunty Ngozi go fix it and make it good.

the action woman is in town,
A MINISTER among the ministers 

ekt_bear:

Wonderful woman.

Comments:
1. I have no opposition to non-interest banking, i have opposition to islamic banking.
2. It is news to me that the Nigerian Ports Authority doesn't remit its revenue to the FG. Customs nko? Very shady.
3. She is right about the silly CBN banking limit policy. Looks like our suspicions of the incompetent Sanusi were correct.
4. I agree with her on the subsidies.

Most Federal Agencies don't remit profits back to the FG. I for one know that FMC's like Luth and oda FG teaching hospitals don't. Funny thing is they still get monies for salaries and capital projects from the FG.

I think from some info I heard far back. Customs gets to keep a share of the money they make but most of it is remitted.

Negro_Ntns:

What's all these Ngozi Okonjo-Iweala worship by ndigbos?

Is this her first time as minister? Is she the President? Every thing she say u guys report it here as if she is your oracle of Ifa or something.
Budget is not good? Ok aunty Ngozi go fix it and make it good.

[b]We value intelligence and true leadership. [/b]Not some drug peddling criminal.

Atiku already said the same about the budjet last year. When he stated that spending 70% on recurrent expenses was not good for development, Aganga and other politicians shut him down, I think dem go listen to Okonjo now.

This Nigeria is becoming something else, what should we do to this politicial instability in Nigeria??

MORPHYLEE:

she doesnt know anything afterall she hasnt been in this country, she can just open her mouth and say what she likes. All her family are out there so if they start the trouble they leave us here and run back


That is bitter truth.

Some people just decide that NL is the most appropriate place to display their ignorance and illiteracy. Will someone who doesn't know what she's doing leave her almost $500,000 (including benefits) annually job to become minister here where she's not even paid 20% of that? I bet some like you would not even have the courage to do it. By the way, you can never earn such amount in your entire life. Poor illiterate slowpoke.

Thank you literate fellow.
You need to apply your number 6.We have lot of our leaders that there families and relatives did not leave here and when it happen they are on there toes.I am not referred to here alone.before she was appointed what are the advice she offer Mr president on finance?

by the grace of GOD,

seanet02:

You are a cretin! What type of development did Nigeria witnessed under your clueless iweala when she was the minister for finance. You ibos always amazes me with your cluelessness

Unfortunately, if you put all sentiments aside you see that Aganga is somewhat responsible for the state of the economy. Important facts you need to look at include the fact that in 2005, Nigeria parted with our "hard-earned" 12 billion dollars to exit the Paris Club of debtors. Fast-forward to the  end 1st quarter 2011- we are back to 6 billion dollars of foreign debt.

Secondly, the $500 million euro-bonds put out sometime ago by Aganga is currently at a record low because of problems in the euro zone that show no signs of slowing down- so that has not been very successful so far.

The only minor positive so far is the foreign reserve at $33 billion, which was about $30 billion when OBJ left office- so not much growth there too. Lets not even talk about domestic debt (N4.5 trillion). This man is a classic investment banker, they are over-optimistic with their projections , take too much risks, and almost always cook up figures to please. So much debt means high recurrent expenditure, low capital expenditure to ever get to the common man in form of schools, hospitals, roads etc.

I am surprised he's getting screened again- hopefully he'll do a better job with his next portfolio. I ain't an economist but I know this guy does not know much about the complex nature of the Nigerian economy.

We value intelligence and true leadership. Not some drug peddling criminal.


No, u "worship" intelligence.

@OP

When the same thoroughly mismanaged refineries were privatized 4 years ago to investors who risked their money and had profit motive to turn it around, Nigerians were up in arms saying the government should seize it back the refineries and run it. Four years later, they are crying that the refineries have not worked

They should suffer in silence!!! Go to the privatized Eleme Petrochemical company and see the place running at full capacity 24/7 and exporting to 20 nations in Europe, Asia and Africa. The place never worked under the corrupt and incompetent NNPC. All they did was award contracts for  turn around maintenance to their cronies and the place remained comatose.

Remii:

Atiku already said the same about the budjet last year. When he stated that spending 70% on recurrent expenses was not good for development, Aganga and other politicians shut him down, I think dem go listen to Okonjo now.

Soludo wrote the report that Atiku talked about. Soludo was then working with Atiku as a potential VP candidate.

Iolo:

Most Federal Agencies don't remit profits back to the FG. I for one know that FMC's like Luth and oda FG teaching hospitals don't. Funny thing is they still get monies for salaries and capital projects from the FG.

I think from some info I heard far back. Customs gets to keep a share of the money they make but most of it is remitted.

That sucks! Why don't they remit money to the Govt? Are they not part of the fed agencies? What is the Nigerian Treasury doing?

MORPHYLEE:

she doesnt know anything afterall she hasnt been in this country, she can just open her mouth and say what she likes.  All her family are out there so if they start the trouble they leave us here and run back


      That is bitter truth.

Bitter truth? What is the bitter truth? That she's intelligent? Come to think of it, I honestly people living overseas with wealth of experience should run our country with their conservative and disciplinary method.


Given the condition of thing in Nigeria with "TRUE UNEMPLOYMENT" at almost 20% of active working population of 18-65, that's a serious thing to handle. For Nigeria to become competitive, it needs to create job, and to create jobs, you need to build infrastructure that will create that environment that provides or creates job. Nigeria's budget is N4.23trillion, approximately $25billion, and then you have 70% of $25billion which is $17.5billion spent o recurrent expense meanwhile $8billion or less is left on Capital Expenditures. How far will $8billion go for a nation of 150million people seeking investment? A nation seeking to expand its economic dominance?

Nigeria needs to spend at least $15billion annually on capital expenditures to meet up with fast growing competitive economies. I really don't see $8billion going that far if Nigeria is to move forward unless if Nigeria intends to borrow another billions of dollars along the cycle. Needless to say that Nigeria's budget of about $25billion is about 14% of Nigeria's GDP, we need to improve more on our budget numbers. Need I say that I support her fuel subsidy idea? Yes I do but for N500 - N600, that's TOO much though, Ouch, that numbers needs to be drastically reduced.

I strongly support her, but hey this is Nigeria, anything happens.

This country has grown too large for this politicians to manage, but they are scared to admit it.

talk, talk, figure, budget if we dont have 24/7 electricity nothing will work. nigerians are just too good in non-perfect science. born to talk n\egga.