Article written by Finance Minister, Mrs Kemi Adeosun. Read below...

Economists have long found Nigeria to be something of a conundrum. The macro picture has always appeared compelling - large population, oil reserves, mineral reserves, endless tracts of arable land, land and sea borders for regional domination. Indeed the absurdity of our underperformance is only surpassed by our ability to accurately quantify our losses and missed opportunities.






In the short period that I have been privileged to serve as Minister of Finance, I have observed that even the most basic systems and controls over the management of our resources are in dire need of strengthening. While we are regaled with and shocked by details of amounts stolen, diverted or wasted, we must face the cold reality that such acts are facilitated by weaknesses in our systems. Even if we successfully prosecute and jail every looter, ghost worker and other economic saboteur, there is every risk that those caught will only be replaced by persons who are just as bad, or worse - unless we radically strengthen our systems and institutions.




Our President’s brave and committed fight against corruption and waste is as much an economic crusade as it is a moral one. The objective is not just to stem the corruption and loss but to execute an economic plan to channel those monies into much needed areas that will support and reposition the economy. In short, the fight against corruption is not about “retribution” and meting out punishment, it is about releasing funds for our economy. I am humbled to be part of the ongoing work on recovery and can report that the urgency in the work, especially our interface with nations where our money has been stashed, is propelled by our need for funds to invest into our economy.




Our economic plans are not about austerity and frugality; if that were the case then we would not be attempting an expansionary budget. We could have pursued fiscal consolidation and maintained 2015 budget size, and then introduced severe public spending cuts to balance the books by laying off workers and cutting projects. Had we done so, we would by now be the darling of the IMF and other multi-laterals.




Conversely, we are undertaking an ambitious counter cyclical strategy to stimulate our sluggish economy and expanding government spending with a focus on infrastructure, the true catalyst for economic growth. This will have contractors returning to site and re-engaging workers, it will see new projects commencing, arrears released and economic activity reinvigorated across the nation. We plan to take advantage of low global prices for commodities and contract prices. Existing contracts are being renegotiated downwards, with significant savings recorded and new projects priced to reflect current commercial realities. Our spending stimulus is private sector driven, supported by a robust procurement system that will see permanent local capacity built in a number of sectors including oil and gas, housing construction and agriculture. However, and this is the key differentiator, we plan to spend in a disciplined manner that will extract the maximum value for every naira spent.




The process of building the internal control framework to support this need for disciplined spending has begun in earnest. Our Efficiency Unit has reviewed four years of detailed expenditure data to identify trends and is already negotiating volume discounts that appropriately reflect the buying power of government. Personnel remains our largest cost. In addition to the BVN driven cleaning of our payrolls that has so far removed 23,000 fraudulent entries, we have initiated significantly stronger controls over our payroll. These efforts will exert a constant downward pressure on personnel costs until such a time as we have assurance that every payment is accurate and valid. A similar process is now commencing in Pensions. The N160 Billion spent monthly on personnel and pensions related costs demands this as an absolute minimum.




The revenue focus is non oil. We are revisiting historical decisions that are no longer in the best interests of the national economy. The establishment of various Boards and Parastatals to undertake the operational and revenue generating business of government was a well-intentioned attempt to provide separation from policy makers. However, as the economy has grown, so too has the revenue earned in these agencies and their financial autonomy has grown in a manner that no longer fully serves the public interest. Port charges, maritime charges, airport landing fees, visa charges, passport charges, telecoms licence fees, among many others, must be tracked and accounted for.




While the Fiscal Responsibility Act was designed to provide control, actual compliance has been poor. The result has been leakage on a staggering scale, as findings from our ongoing audits suggest. This is a serious issue. The upside is a significant revenue opportunity which the TSA implementation has given us sight of, and which we are supporting with a proactive drive for improved accountability.

At the same time, our traditional revenue sources are being supported to be more effective.




In Customs, we are making the necessary investments in container scanners and other equipment required to improve collection efficiency. This is combined with the results of a compensation survey which will see the introduction of performance related pay, to reduce corruption and create an alignment of interest that will enhance revenue generation. With FIRS there is a well-defined plan to enhance compliance by widening the tax net. Using data to drive tax compliance, we will ensure that the tax regime is efficiently administered and that everyone pays their fair share.




There is a need for disciplined and effective system of managing our financial resources to ensure maximum value. We will no longer measure performance by the size of our budget or the amount disbursed; we must measure by the impact of that expenditure on the lives of Nigerians. To measure and manage this we have already made some key changes in the way funds are released. We have abandoned the old system of capital releases that funnelled a proportional share of available funds released to each Ministry, Department and Agency. We have a robust system in place where funds are tied to specific outcomes as documented by each agency. This is being supported by follow up reviews to ensure implementation.




As Benjamin Disraeli once said, “We are not creatures of circumstance; we are creators of circumstance.” I am firmly convinced that Nigeria is on the right path. The path of discipline will confront some age old destructive habits. It will challenge some unwritten rules, and I personally will step on some highly placed toes on this journey. All this I am fully prepared for, and so I do not expect nor do I particularly want to be popular.

However, I will act in the best interest of all Nigerians to ensure that we build the economy that we desire and richly deserve.




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

F

I personally will step on some highly placed toes on this journey. All this I am fully prepared for, and so I do not expect nor do I particularly want to be popular.

She's sounded serious and witch.

This woman is a disgrace and should be sacked already...
Too much blabbing yet no positivity in our economy...

We will no longer measure performance by the size of our budget or the amount disbursed; we must measure by the impact of that expenditure on the lives of Nigerians.

HMF, I think you have been grossly underestimated. I, personally, believe in you and I hope you prove your doubters wrong in the end.
---
People compare you with our amiable NOI, forgetting that NOI was more than a HMF (Honorable Minister of Finance) but also the CME (Coordinating Minister for the Economy). Right now, even National Planning & Budget has been removed from the Ministry of Finance.
---
For what this beautiful & intelligent lady has been profiled to do (Management of govt Finances), she is more than capable and so far doing an outstanding job. Most of the criticism directed at her has been done either unfairly or maliciously.

EasternActivist:
This woman is a disgrace and should be sacked already...
Too much blabbing yet no positivity in our economy...

I know you will never fail to entertain us with your wailing prowes, just to garner likes from your co-travelers hiding behind their keyboards.

If you are waiting for Honourable Min. of Fin. Mrs Kemi Adeosun to be relieve of are duty you are standing on a long thing, you will cry, wail, protest, give unnecessary ultimatum as usual for a very very long time, if you are tired of doing all the afforemention you will retire to your lie peddling business and bury your head in shame. There is no for voodoo economy any longer
There is no room for free TAN fund any longer.
Get a meaningful life and stop wailing.

realjoker:
I know you will never fail to entertain us with your wailing prowes, just to garner likes from your co-travelers hiding behind their keyboards.

If you are waiting for Honourable Min. of Fin. Mrs Kemi Adeosun to be relieve of are duty you are standing on a long thing, you will cry, wail, protest, give unnecessary ultimatum as usual for a very very long time, if you are tired of doing all the afforemention you will retire to your lie peddling business and bury your head in shame. There is no for voodoo economy any longer
There is no room for free TAN fund any longer.
Get a meaningful life and stop wailing.

Seunmsg I see you... Why hiding in another monicker...
Besides your goddess is clueless and can't salvage the economy.
For her own good why not tell her to honorably resign...
Am not a wailer or a zombie on a neutral ground I am a nationalist...
Kemi should be sacked for incompetence

EasternActivist:


Seunmsg I see you... Why hiding in another monicker...
Besides your goddess is clueless and can't salvage the economy.
For her own good why not tell her to honorably resign...
Am not a wailer or a zombie on a neutral ground I am a nationalist...
Kemi should be sacked for incompetence

who is seunsmg? You beta remove the chaff in ur eyes. I know u wil quote me back imediately as u ar always online here 24/7, dont u have a work to keep u busy?
or ar u a pay per post online dunce?
Or are u pay base on the likes likes u garner from ur co-wailers by wailing like a castrated baby and abusing PMB and anything that have to do with him?

EasternActivist:


Seunmsg I see you... Why hiding in another monicker...
Besides your goddess is clueless and can't salvage the economy.
For her own good why not tell her to honorably resign...
Am not a wailer or a zombie on a neutral ground I am a nationalist...
Kemi should be sacked for incompetence

I am not realjoker and I have absolutely no reason to hide behind another monicker to give my views on the finance minister. Kemi Adeosun is doing a good job so far and I have no reason not to support her openly.

I am happy she's talking about strengthening the existing control system over governments resources, that is the way to go if we are truly serious about tackling corruption. The current accounting and internal control over governments assets only exist on paper. Once collusion can be build, corruption flourish easily.

Going forward, government also need to strengthen the capacity of the office of the Auditor General to effectively audit and report on the activities of all MDA's. This is one area this government seems not to be looking at. No matter how much you strengthen the accounting system, collusion among corrupt elements within the system will always allow corruption to flourish and that's why a competent, well motivated and strong federal/external audit is important.

I can see this change is really affecting your objectivity, your hatred for Gej is still beclouding your judgement.
You have decided to remain partisan and a bigot in detriment of your revered nation.

Kettle calling pot black, how many sec did it take you to reply your mention...

Get a life.

[s]

realjoker:
who is seunsmg? You beta remove the chaff in ur eyes. I know u wil quote me back imediately as u ar always online here 24/7, dont u have a work to keep u busy?
or ar u a pay per post online dunce?
Or are u pay base on the likes likes u garner from ur co-wailers by wailing like a castrated baby and abusing PMB and anything that have to do with him?

[/s]

Phd

EasternActivist:
I can see this change is really affecting your objectivity, your hatred for Gej is still beclouding your judgement.
You have decided to remain partisan and a bigot in detriment of your revered nation.

Kettle calling pot black, how many sec did it take you to reply your mention...

Get a life.

[s][/s]

what the heck is wrong with you, did i mention GEJ in my earlier post?
The defeat of GEJ (Phd) as done Permanent head damage (Phd) to you.
The earlier you realise that your wailing and lies can never bring back GEJ and his gang of thiefs back to their looting spree the better for you and your co-wailers.

Bevista:
HMF, I think you have been grossly underestimated. I, personally, believe in you and I hope you prove your doubters wrong in the end.
---
People compare you with our amiable NOI, forgetting that NOI was more than a HMF (Honorable Minister of Finance) but also the CME (Coordinating Minister for the Economy). Right now, even, National Planning & Budget has been removed from the Ministry of Finance.
---
For what this beautiful & intelligent lady has been profiled to do (Management of govt Finances), she is more than capable and so far doing an outstanding job. Most of the criticism directed at her has been done either unfairly or maliciously.

and you fail to inform them that their goddess NOI fail woefully on her primary assignment which is managing government finance. Under her watch Nigeria make huge amount of forex from sales of oil and at the same time accumulate the highest rate of foreign debts and the foreign reserve was also almost emptied with nothing to show for it in times of development except enriching corrupt politicials.

In the next 6-18 months, people will begin to appreciate this woman's effort based on result. I admire her zeal, passion to turn around our punctured and deflated economy. I pray that God see her through in achieving all of her economic objectives for Nigeria.

This woman has laid bare the direction she and her ministry are headed as it concerns the country's finances. 24hrs after the OP, only about 5 people have commented. And the legion of naysayers would not stop lamenting that the govt does not communicate its direction.

Selective myopia?

No discussion, no contributions

cola:
This woman has laid bare the direction she and her ministry are headed as it concerns the country's finances. 24hrs after the OP, only about 5 people have commented. And the legion of naysayers would not stop lamenting that the govt does not communicate its direction.

Selective myopia?

Maybe lalasticlala can help push the thread to front page to attract more comments.

Fact is, most people are only interested in abusing the woman even without understanding the duties of her office. They have accused her of not coming up with any policy direction and now that she's communicating her policy direction to the public, nobody seems interested again.

Getting the pieces in place

we are not creatures of circumstances but creators of circumstances.

with the policy, discipline and clear direction of the federal government, in a year time, i see Nigeria on a fast-lane to greatness.

not only the Finance Minister but all well meaning igerians are prepared to step on big shoes to achieve this

our eyes shall see it taken place.

Fire On Mrs Kemi Adeosun. God will see us through