Okonjo-Iweala Seeks Speedy Approval For N1.8trn External Borrowing Plan

The Minister of Finance, Dr Ngozi Okonjo-Iweala, on Thursday in Abuja asked the National Assembly to quickly approve the Federal Government’s external borrowing plan of $7.9b about N1.8 trillion.

Okonjo-Iweala made the request during an oversight visit to her office, by members of the House Committee on Finance.

President Goodluck Jonathan had written the Senate and House of Representatives in February seeking approval for the loans to fund key projects in various sectors of the economy.

Nigeria is seeking the loan facility from the World Bank, Africa Development Bank, Islamic Development Bank, Exim Bank of China and India lines of credit.

``We have an external borrowing plan that we have put to the National Assembly, as we are required to do and I am really counting on your help to get out the borrowing plan as quickly as possible.''

The minister said that the loan was required to complete some ongoing projects captured in the 2012 budget.

According to her, government will spend the loan on several projects in agriculture, water resources and power.

On the monthly meeting of Federation Accounts Allocation Committee (FAAC), which distributes money to the three tiers of government, the minister explained that delay in disbursing funds was not an issue of concern.

She said, ``We are depending on a resource (crude oil) that sells in the market, remember sometimes when you sell in the market, you do not get the money right away.

``Just like an ordinary seller in the market there are sometimes when you are selling to your customers, they will tell you that I will bring the money later please give me credit for one or two days.''

She, however, conceded that the country was facing a major challenge of drop in the oil production due to ongoing massive theft of crude oil in the Niger Delta region.

``That has direct impact on output, which may impact on revenues.''

The minister, however, stated that Nigeria's finance was very solvent and ruled out the possibility of any fiscal crisis as a result of the massive oil bunkering activities in the Niger Delta.

``As of this moment, we are meeting all our bills, we have not experienced any crunch, but we need to face some of the challenges squarely.

``I believe the government is facing some challenges and our security agencies are fully aware.’’

Okonjo-Iweala, who is also the Coordinating Minister for the Economy, told the visiting legislators that the ongoing political and economic turmoil in some EU member countries had created fresh economic uncertainty for the country.

``Because 60 per cent of our exports go to the Eurozone and the US, we should always be mindful of what is happening there.

``Because it may have a direct impact on us in terms of demand for our products.’’

Commenting on the FAAC meeting, the Minister of State, Dr Yerima Ngama said the anti-fuel subsidy demonstrations in January this year slowed down the flow of revenue to the Federation.

According to the Minister, the monthly FAAC meeting has been reverted to the former dates of 18th and 19th, as against 12th and 13th of each month.

Ngama attributed the delay in the payment of salaries of public workers to ongoing software upgrade of the payment module deployed by government for payment of salaries.

He assured Nigeria workers that the delay would be over as soon as the software issues were resolved.

In his response, Abdulmumin Jibrin, Chairman, House Committee on Finance, assured the minister that the house would consider the request for the external borrowing plan, tabled since February.

``We are partners in progress and whatever request that comes from you be rest assured that we will take it very seriously and give it priority attention.''

Jibrin requested the ministry to monitor more closely remittance of internally general revenue (IGR) to government coffers from government revenue generating agencies such as Nigeria Customs Services.

He also called for close monitoring of all revenue-generating agencies in the non-oil sector to ensure proper remittance of actual revenues accruing to government.

omooba agility: wht type of economist this woman said she is?

femooo: I pity the unborn generation! SMH.

dasparrow: I give up on Nigeria. Just look at how our leaders are selling our birthright for a plate of porraidge. I feel for generations of Nigerians yet born because unless something is done to curb corruption and mismanagement of resources, future generations will be living lives filled with abject poverty. Oh well.

cyrexx: this Okonjo Iweala that gave our gullible president wrong advice on fuel subsidy. may her generations suffer the same predicaments as the victims of fuel subsidy. may her family suddenly become bankrupt and begin to borrow borrow the way she is advising nigeria to borrow now. may all her family never progress, the same way her policies are against progress of average nigerians, may she always know sorrow the same way they plunged average nigerian into sorrow with their self serving policies. may the accurate targetting thunder of Shango and Amadioha strike her and her family dead suddenly, since since there is earthly court to to convict her. by the power of all the Gods in in Africa.