Okonjo-Iweala raises alarm over rising debt profile

WITH over 6,294 ongoing projects by 30 Ministries, Departments and Agencies (MDAs), the country would need about N7 trillion to complete its developmental schemes, the Budget Office has revealed.

The Federal Government yesterday said efforts to streamline the multiplicity of MDAs were on-going as the names of the review board members would be released within the next 10 days, noting that no new project would be accommodated in the 2013 budget.

Besides, the Co-ordinating Minister of Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, disclosed at a consultative meeting with the organised private sector and civil society organisations on the Federal Government 2013 budget tagged “Charting the way forward for inclusive growth”, in Lagos yesterday that with the rising debt profile of the nation, amidst the Euro zone crisis, it may be difficult for the nation to get foreign aid if it slipped into another debt crisis.

She added that though the nation’s debt profile was sustainable when aggregated against the Gross Domestic Product (GDP) level, it might become unsustainable if the domestic debt was not monitored and reduced, noting that there was need to increase the foreign reserves to $50 billion and shore up the excess crude account from the existing $5.8 billion to $10 billion in order to be effectively shielded from another debt crisis.

The Director-General, Budget Office, Dr. Bright Okogu, noted that with over N404 billion already released for capital expenditure as at the end of the second quarter, with about 31 per cent implementation rate, some MDAs with large debts may not receive new allocations in the 2013 budget.

According to her, although efforts are being made to ensure that the sinking fund is effectively managed, with the nation’s domestic debt profile standing at N5.9 trillion, it has become expedient for the nation to slow down domestic borrowing and diversify its earnings as current interest rates continue to widen the debt net.

To this end, Dr. Okonjo-Iweala noted that the economic team has concluded plans to tighten loose ends in the 2012 budget, while efforts are being made to reduce the refinancing of the loans, even as loans by state governments are being closely monitored.

On their part, members of the organised private sector and civil society organisations noted that except government addressed the issues of multiple-taxation, poor infrastructure, high interest rates, inconsistency in policies and corruption within the public sector, it may be difficult to effectively implement the budget and enhance growth in the nation’s economy.

The minister said: “Debt ratios are reasonable at this time. Within the domestic level, it is worrying but there is a solution at hand. We are trying to decelerate the rate of accumulation of domestic debt by breaking the trajectory of borrowing so that Nigeria does not find itself in a dire situation.”

She continued: “Our fiscal policy has been loose in the last few years, but we need to tighten it now. We need to build up our reserves to about $50 billion. We are currently at about $37 billion as against $32 billion last year. Similarly, our excess crude account must be shored up from the present $5.8 billion to $10 billion.”

Explaining the rationale behind the scrapping of some MDAs, Okogu said that a multiplicity of over-lapping functions had been observed in the MDAs, thereby necessitating the need to enhance prudent management of public resources and minimise leakages and their sources.

Reacting to Okonjo-Iweala’s position on the growth strategy for the mid and long-term, the Director-General, Nigerian Economic Summit Group (NESG), Mr. Frank Nweke (Jnr.), noted that there was need for government to address the issue of profligacy in its institutions.

“Some of the issues that we are discussing are not new. They have been lingering for as long as six years. When the current GDP is aggregated against both the local and foreign loans, it is hardly sustainable. What have we done with the monies that we are earning from taxes and other revenue agencies? Policies have been abandoned.

“Fiscal deficits can only be reduced if the level of stealing can be reduced. The Bureau of Public Procurement is also culpable for some of the leakages in the economy. The drive for prudent management of resources will result in nothing if corruption continues unabated. The National Assembly has no business spending the money which they are spending as they have remained unaccountable. This is an act of fiscal rascality”, he added.

On its part, the Manufacturers Association of Nigeria (MAN) has urged the Federal Government to address key issues affecting the growth of the nation’s manufacturing sector.

According to its president, Mr. Kola Jamodu, certain incentives should be offered by the government to encourage the productivity of the key sectors of the economy.

“Investment tax credit should be initiated to reduce the infrastructure problem in the country. Manufacturers should not bear the burden of multiple-taxation after self-provided infrastructure, which the government ought to have provided. Doing business in the country has become increasingly difficult. All these issues need to be addressed,” he said.

On the issue of high interest rates charged by banks to the real sector, he noted: “I think the banking sector should be re-examined. The interest rates by the banks are too high. Despite the high capitalisation of the banks, the interest rates are still high. They need to be developmental in their approaches. There is the need to dialogue with the banks, especially as inflation rate has fallen.”

http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=91874:govt-needs-n7-trillion-to-complete-6294-projects-&catid=1:national&Itemid=559

Government should name just 5 projects it has "successfully" completed. Before it completes 6,294, let's start with just 5.

a child learns to crawl b4 walking.
the govt that bites more than it can chew will choke.
abeg small small

I believe its called "setting priorities". If there is a funding gap for any infrastructure projects, the government should be able to prioritise. Simple.

In my own opinion top 5 projects not in any particular order:

1.Expansive Transportation Projects (Federal Roads, Rail Networks, Airport and a Viable National Airline, Waterways etc);
2.Security and effective security apparatus across the country (State Policing is very important);
3.Education, Education, Education;
4.Massive Food Production Programme, using the strengths of the six geo-political regions in producing local and export crops, we need to stop over-dependence on oil;
5.Job creation.
I'm positive that the government won't spend up to half of that amount stated.
This is just an avenue to creation more corrupt millionaires.

A student begins to fail when:
(a) He fail to concentrate.
(b) He has no goal.
(c) He is full of lies
(d) There is no proper home work.
(e) He collects excessive money to buy failure.
(f) Looking at failure as usual life style

[quote author=Kobojunkie]Government should name just 5 projects it has "successfully" completed. Before it completes 6,294, let's start with just 5.

spot on

small money, they should sell all of us and use the money for the projects.

the debt management office should sell Federal govt Bonds to raise d cash needed for d "projects" that way they'll mop up d excess cash roaming around in the population, (well of course, that will be the population of politicians)

I dont know why this GEJ administration keeps stacking funds. What is this guy up to? The subsidy money was used to finance his elections and instead of admitting, they laid blames on marketers as if subsidy exist in the 1st place. Now that every nigerian is interested in the subsidy probe; here come another diversionary tactic,FAROUK and OTEDOLA. Gej's administration is d most corrupt in the world. 7 trillion naira needed for looting again?? We need BEAF to come explain this

Billyonaire: small money, they should sell all of us and use the money for the projects.

laugh wan kill me 'lwkm'

Why the alarm?

Is GEJ's Cheque book missing?

stolen stone: the debt management office should sell Federal govt Bonds to raise d cash needed for d "projects" that way they'll mop up d excess cash roaming around in the population, (well of course, that will be the population of politicians)

Who will buy them?

The fact remains that over 80% of our foreign earnings comes from the oil sector,and with no sincere plans to diversify the econonmy,I wonder the story we will leave for the next generations.For sure,what goes around comes around.The next generations will only read about the plenty of oil that once existed and how the proceeds were ruthlessly squandered.

Sighhhhhhhh. The topic should read 'FG needs more 7 trillion naira to loot.'

Small small oo

hmm . Wonders and lies shall never end in this country ooh. What about all the huge amount of money they are getting
from oil and power . They are no longer interested in embezling billions. it now trillion.

7 trillion to complete projects or to share the money?

I am sure most of the projects are from previous administrations.

I have been dormant on nairaland for over a year but am back to deal with that sss agent called beaf and company. @ seun osewa,watch out for me

Jst tired of dis hopeless country,even wen u giv dem 10trillion there will be story story 4 dat.Let dem tell us how much dey ve realised in subsidy mony.Infact,let dem tell us d already completed project since one yr.We re tired of their stories period.

i want to ask mrs iweala one question, were this projects not in the president's budget for the year,or was the money meant for this projects looted?

Kobojunkie: Government should name just 5 projects it has "successfully" completed. Before it completes 6,294, let's start with just 5.

Lets start with roads. In just one year, GEJ has either completed or is undertaking the construction of the following roads: Zaria-Funtua-Gusau roads measuring over 101 km and awarded to Julius Berger, Oshodi-Apapa with expansion and drainage works, dedicated bridge frm liverpool roundabout to Tin can ports, trailer park, Dualisation of Ibadan -Ilorin, ENUGU-Onitsha, completion of OWERRI -Onitsha, 9th mile, ongoing reconstruction of Benin-Ore-Sagamu highway measuring over 265 km, Kano-Maidugri Dualisation. Keffi -Akwanga-Lafia, award of Afikpo-Okigwe, Auchi-Okene being handled by Setraco. Loko-Eweta-Karishi bridge, Kolo-Nembe -Brass, Minna-Suleija, Kaduna Eastern Byepass, Acess roads to ELEME PORTS and Mossimi, LAFIA-Obi-Awe,

Story. Story. Storyyy

mantote: I have been dormant on nairaland for over a year but am back to deal with that sss agent called beaf and company. @ seun osewa,watch out for me

Who be dis one Abeg go and sit down! Joko joor!

ebamma: i want to ask mrs iweala one question, were this projects not in the president's budget for the year,or was the money meant for this projects looted?

Silly question!

billante:

Who be dis one Abeg go and sit down! Joko joor!

LOL,

@topic,

I think setting priorities is the most important thing.

ebamma: i want to ask mrs iweala one question, were this projects not in the president's budget for the year,or was the money meant for this projects looted?

Nope, not these project, I should say, NOT all of these project but a some of them were amongst the budget. If you looked at the budget speech, if I'm correct, sometimes about 3months ago, the FMF( fed min of finan) stated that Nigeria had about 6000+ project that had been started from previous administration but were either abandoned or not completed. Some of which were worked into this year's budget. For instance, POWER took a good chunk to complete in the short term haul.

In power, refurbishment of ALAOJI , AFAM, PAPALNTO, CALABAR GEREGU POWER PLANTS.

Construction work has also been completed in MAMBILLA and Zungeru power stations and is awaiting commissioning.

Utorogu gas plant has been completely overhauled.

The completion of these projects led to the addition of 4, 000 megawatts to the National Grid

Already, his achievements are visible in every sector. All the Zaria-Funtua-Gusau roads, Oshodi-Apapa with expansion and drainage works, dedicated bridge frm liverpool roundabout to Tin can ports, trailer park, Dualisation of Ibadan -Ilorin, ENUGU-Onitsha, completion of OWERRI -Onitsha, 9th mile, ongoing reconstruction of Benin-Ore-Sagamu highway measuring over 265 km, Kano-Maidugri Dualisation. Keffi -Akwanga-Lafia, award of Afikpo-Okigwe, Auchi-Okene being handled by Setraco. Loko-Eweta-Karishi bridge, Kolo-Nembe -Brass to mention but a few.
In Transport, massive reforms at the ports. Sanitisation and reduction of operating agencies to 7. Introduction of 24 hrs ports operation. Ongoing Construction of light gauge train railways across the 4 cardinal points of the federation.

In Aviation, massive reconstruction of major airports in the land, Enugu airport is undergoing total rehabilitation. The domestic wing of Abuja airport is also being reconstructed with expansion of roads and car parks. Same fr the international wing and the kano airports

In Education, establishment of 9 new federal universities in less than 1 year. Construction of 2 new campuses of the Nigerian law schools in Yenagoa and Yola respectively. Launched the Almajiri schools for education of itenerant Islamic pupils in the north which Buhari and other northern leaders abandoned. Increased funding to almost 400 billion to education thereby setting the all time highest record. Reinvigorated the inspectorate oversight of schools leading to the revocation of some licenses from mushroom universities. Executed the landmark upgrade of university lecturers retirement age from 65 to70. This administration has been burdened with the Herculean task of addressing the rot in the land as a result of years of neglect by successive military administrations and policy summersaults by the administration of late President Umaru Musa Yar'Adua. The neglect has occasioned the need for total transformation which the present administration is carrying out despite the distraction of rabble rousers like Buhari and El-Rufai, who having failed to acquire political power legitimately have resorted to using scoundrels like kobojunkie and his team of scoundrels to tarnish the image of the administration and the Nation at large. My verdict for you is that Nigeria will outlive and outlast her detractors and you haters and your paymasters will be shamed. LONG LIVE NIGERIA.

Just N7 trillion? that na small money. Just line up your fellow looters...starting from Gowon, IBB, Abacha family (OBJ collected some and stole it again), Abdul Salami, Shonekan, OBJ, Atiku, Ibori, Orji Uzor Kalu, Akala, Oyinlola, David Mark, Dimeji Bankole, Patricia Etteh, Nzeribe, Tinubu, Turai, GEJ & Patience,all past and present NASS members, all past and present Governors, all past and present ministers, all past and present service chiefs, all past and present IGP, all past and present LG chairmen, all past and present Councillors, all past and present political jobbers e.t.c....Let them write a check of 10% of whatever they have stolen from Nigeria....GEJ will have more than enough....but the problem is....GEJ will embezzle it again. "Ole gbe, ole gba" (meaning thief stole it, another thief collected it from the first thief.

@dedeoike God go punish you.have you been to this road?you are talking od suleija minna road,have u passed through this roads?foolish goverment agent like u.am back on nairaland to deal with paid cia-like agents like u.