Nigeria: The Economic Upside
By Kemi Adeosun

Nigerians voted for change and to attain that change there is a need to do things differently, in the recognition that doing what we have always done will only result in more of the same. That change has started with the vital offensive against corruption, which has had a huge and adverse effect on our economy. Much of the debilitating underinvestment in our infrastructure that has handicapped our economic growth, has arisen because funds were diverted to enrich a few at the expense of the wider populace. At the lower levels, the waste, inefficiency and culture of non-performance have, like a financial cancer, eaten away at our core institutions. We are already beginning to see change. The slide towards self-destruction has slowed down but we must now work collectively to ensure that we exploit the upside from our situation.

Globally the downturn has hit all nations, rich and poor alike. The manner in which governments have intervened to protect their economies have been diverse and innovative. What is abundantly clear is the fact that the previous consensus about what is best for the global economy is rapidly changing. There is a concerted move towards individualism rather than collectivism. The new normal for the global economy is that there is no normal, each nation must painstakingly work out the best path to follow.

For Nigeria, we believe that the best path to follow is to invest in infrastructure that will unlock the potential in the non oil sectors. We can transition from being a commodity economy to an industrialised, regionally dominant one. Oil is important but clearly, oil it not enough. Iran is a very recent and relevant example of living without oil. The sanctions that embargoed Iran’s oil led to the development of robust petrochemical and other export industries that enabled the country to survive. Iran survived without oil, made tough decisions and is now being feted by investors as the next growth story.

The focus of our economic policy is to redress the infrastructure deficit, unlock the rich diversity in the economy with a determined and focussed turnaround programme. For us it would be a tragedy to have endured so much pain and not emerge better and stronger. The provision of a spending stimulus to the economy is critical to releasing the upside in the economy. Investing specifically in Power and Transportation will release the opportunities in solid minerals, manufacturing and agriculture.

However, government spending alone is insufficient to bridge the infrastructure gap and there is a need to embrace private capital to provide additional impact. We are at an advanced stage of reforming the process for Public Private Partnerships to provide a seamless pathway to attracting much needed private, financial and operational input to service delivery. Private capital brings more than financial resources; it also brings discipline and best practice, creating a benchmark against which the utilisation of public money can be measured.
It is important to link the fiscal housekeeping initiatives that we have started with the wider economic strategy. Specifically, questions around the focus on corruption and the elimination of ghost workers, controlling inefficient spending and preventing revenue leakages, need to be evaluated in the context of how it impacts our ability to stimulate the economy. We have been increasing our level of borrowing annually, and much of that is used to fund recurrent spending. Indeed in 2015 just 10% of spending went to capital items. We spent more on travel, training and stationery than on roads. No nation has ever developed with such consistent underinvestment in capital.

Growing the economy at a rate that will address the employment needs of our huge population requires a fundamental change in how government collects its revenues and spends. The 2016 budget is deficit financed; and the fiscal housekeeping which is aggressively blocking revenue leakages and reducing costs is firmly aimed at ensuring that the borrowed funds are channelled into capital projects, rather than seeping through an inefficient financial management system. This is not only prudent economics but it is a moral necessity, since these borrowings will be repaid by future generations. Therefore, while we focus fully on the macroeconomic indicators; we must and will continue to focus on the micro factors which collectively shape and determine the larger picture.

The road map to attaining our objectives is a tough one, and we may endure the financial pain for longer than we would prefer, but the upside is that we have actually already endured the worst part of the adjustment cycle. The outlook for oil prices is looking more positive but we are fundamentally determined to ignore oil. One word that will resonate across all that we do in government is ‘Discipline’. Financial discipline is going to be a game changer in shaping the future of Nigeria’s economy.

Our focus will make sure that ‘every naira counts’ irrespective of its source. The government is ready and determined to lead this crusade of financial responsibility. The big questions are:

• Is the populace ready to do the right thing in their respective areas of operations?
• Are we willing to be frugal and conservative in expenditure?
• Are we as custodians of the nation’s wealth willing to manage the resources entrusted to us with care, knowing that someday we will be called to account?
• Are we willing to confront those who mismanage our collective wealth regardless of the consequences?

•
Nigeria stands on the threshold, daring to move into previously uncharted territory through identifying and embracing novel economic and fiscal policy stratagems that will release our considerable upside. We are for innovation to create a new workable path, courage, and discipline to implement and build a resilient economy that is not controlled by the oil price.

This is the first of three articles by Mrs. Kemi Adeosun, Honourable Minister of Finance, Federal Republic of Nigeria.

Follow the Federal Ministry of Finance on Twitter:

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I don't trust her level of competence so I cannot follow her anywhere

All the populace demands from the govt in order to buy into such idea is accountability and technical support. How do you tell a man to start producing toothpick or packaging chicken when cheaper alternative is being smuggled and lack of systemic support like roads, subsidy, water, electricity being enjoyed by foreign produces are helping them keep cost down? The task goes beyond the minister and Nigerian producers. The govt must block smuggled alternatives, subsidized things being subsidized in other countries, provide good road network, electricity, water and expertise. These things goes beyond the minister of finance. The govt must step up first before the populace can step up their productivity.

thesicilian:
I don't trust her level of competence so I cannot follow her anywhere

The task at hand goes beyond her "competence". Will she help in enforcing the blockage of alternatives to local goods being smuggled through the Nigerian costum service nose also? Can she sparehead provision of electrical power and check vandalism of the power supply apparatus? Can she see to the distribution of fertilizers to farmers? She maybe able to collate data and point out to the govt that it is spending too much on recurrent expenses, or help analyse financial positions of the govt.

this woman is a joke. since you want us to enact what led us in the 50s and 60s why don't you tell bubu to restructure the country into regions with semi autonomy?

We have heard madam, although not very different from changi campaign promises. I really pray you exceed these expectations. I expect to hear 'HOW' these would be achieved in your next article.
Get to work madam minister

Okijajuju1:
iStandWithKemi..


JailOkonjoIweala..

Jail okonjo iweala?

Instead of analysing and commenting on the messages contained in the article, the pained losers above chose to play to the gallery. SMH for the "leaders of tomorrow". Leaders ko. Looters of tomorrow night.

@topic, I equally believe that Nigeria is taking the turn to better economy having survived DasukiGate, MettuhGate, BadehGate, DokpesiGate and even the IneffectualBuffoonGate.

The road map to attaining our objectives is a tough one, and we may endure the financial pain for longer than we would prefer, but the upside is that we have actually already endured the worst part of the adjustment cycle.

The outlook for oil prices is looking more positive but we are fundamentally determined to ignore oil. One word that will resonate across all that we do in government is ‘Discipline’. Financial discipline is going to be a game changer in shaping the future of Nigeria’s economy.

This woman needs to write and communicate more so that wailers get to know she's up to the task. Unlike the paper heavy weight Madam Gele who is rich in paper qualifications but empty on performance.

Integrityfarms:
Cutting down costs on travels, I hope PMB is included? Or is some people above the law?

PMB will need to make at least 10 trips to equal just one by the IB. You know why? The IB used to travel with up to 300 delegates on his entourage while PMB's is around 20, 30 persons. Figure it out!

iStandWithKemi..


JailOkonjoIweala..

Cutting down costs on travels, I hope PMB is included? Or is some people above the law?

Next article please..

Digesting the article.......

Brb lemme read

[img]http://media1./media/D5c5Pi7BasGis/200w_d.gif[/img]

my problem with this administration is their lack of readiness to rule and more annoying is their inability to carry the populace along

why would a president announce his plans only when he's abroad making unguarded statements

Get to work already...let ur work speak for itself...not this long article joor. let ordinary Nigerians like myself feel the impart...that's what's up

Okijajuju1:
iStandWithKemi..


JailOkonjoIweala..

if she z not jailed ... kill ursef

She's just a waste of Ministerial Position. She cannot even influence poor Bubu.

The road map to attaining our objectives is a tough one, and we may endure the financial pain for longer than we would prefer, but the upside is that we have actually already endured the worst part of the adjustment cycle. The outlook for oil prices is looking more positive but we are fundamentally determined to ignore oil. One word that will resonate across all that we do in government is ‘Discipline’. Financial discipline is going to be a game changer in shaping the future of Nigeria’s economy.

This is the most important part of her article

Nigerians should start adjusting themselves to the new financial framework which is based on discipline

The budget fiasco was very embarrassing but I will score the government 6/10 so far

leonbob:
my problem with this administration is their lack of readiness to rule and more annoying is their inability to carry the populace along

why would a president announce his plans only when he's abroad making unguarded statements

Hhahahahhahahahahahahha. He is an overseas president.

sexyexcalibur:


if she z not jailed ... kill ursef

Why are you so violent?

Yes pmb

I can decern a brilliant mind when I see one,I sincerely believed that this woman is one ..may God help you to prove the doubting Thomases wrong in this country..we voted for a change & I know majority are ready for the change that we voted for,the price may be much but we know that no pain no gain,no pressure no pleasure..God will help us to endure the season of pressure to withness our imminent season of pleasure... Things will definitely turn around for the betterment of our father land.

thesicilian:
I don't trust her level of competence so I cannot follow her anywhere

You can't be more competent than your employer wants you to be. D woman fine die.

WE HAVE DONE THE VOTING, PLEASE DO THE GOVERNING.

Madam please who are you addressing, your people in government or we the citizens ?

Yet again the citizens must be blamed ! Madam, I don't know how ready a nation can be for development, we voted out the last government for this government and you are here asking if we are ready for A B C D E....
The president told Al Jazeera that he is not in any hurry to fix the economy, when al jazeera reminded him the citizens are running out of patient, the president responded fiercely and visibly angry by asking what did the citizens do in the last 16 years, is it now that they want to be in hurry ?

All we ask is leadership by example, the first leakage is the round tripping happening in the banks. I am bringing my dollars home for investment, the banks changes it at 199 naira, when I need dollars to buy raw material the banks sells to me at 300 naira,why has the government has refused to block that leakage?

Secondly, how can you be asking if we are ready to confront those that mismanaged our wealth, we the citizen have done our own we voted them out , it's your turn to act madam. These people are not only in PDP, they form the nucleus of your party.

What financial discipline are you talking about, do you know how much Baba has spent travelling,? do you know how much is budgeted for feeding in Aso rock when Baba is being paid his salary ? Did you see all the leakages in the budget from the state house clinic to the generator room saga ? unfortunately in the interview granted Aljazeera days ago,Baba blamed the budget on saboteurs he said it was done by 60-70% of civil servant loyal to the last administration ... THIS GOVERNMENT NEVER TAKES RESPONSIBILITY, THIS IS GOVERNMENT OF BLAME Please act what you say.

We have done our voting, please you do the governing.!

She should go and seat down joor what difference has she made since her appointment ? They are all confused not even having a blue print on how to move the country forward. APC thought that governance is moi moi

Upside down tins






ThefakeStan

fake defending everywhere in the gov't

What is this one saying again that we have never heard before. They sang the same song under operation feed the nation obj, ibb - SAP, yaradu 7 point agenda, GEJ transformation.

All these things she is saying is grammar, those former policies they told us and we followed them only ended up destroying our economy the more.
If I am to suggest to you madam, they should encourage and develop the local industries, and this starts with you. Wear made in Nigeria Ankara fabrics to work like madam NOI and late madam Akunyili and encourage all your colleagues to dreee in Nigerian fabrics Baba inclusive.
Ensure strictly fiscal discipline in govt, all wasteful trips must be stopped, medical delivery system must be improved such that all treatments must be done here unless where such cannot be handled here. No more holiday vacations abroad for govt officials go to your state and develop it. Educational instructions should be developed and given the necessary support.
Every state should have at least one fed ministry sited there.
Open up the rural areas for development and agriculture, reorientate the youths.
Improve power, create a safe enabling environment for business and so on and so forth

Charly68:
I can decern a brilliant mind when I see one,I sincerely believed that this woman is one ..may God help you to prove the doubting Thomases wrong in this country..we voted for a change & I know majority are ready for the change that we voted for,the price may be much but we know that no pain no gain,no pressure no pleasure..God will help us to endure the season of pressure to withness our imminent season of pleasure... Things will definitely turn around for the betterment of our father land.

look at yourself in mirror. defending incompetent fellow