₦airaland Forum

On fuel subsidy, she said: "There has been a lot of debate on fuel subsidies and we have all resolved that (removing it) is a good direction to go on. You have to leave it to us to decide when it is prudent to do so."

SMH - 

By EMMA UJAH, Abuja Bureau Chief & BABAJIDE KOMOLAFE

ABUJA- THE Federal Government plans to remove subsidy in petroleum products, cut recurrent spending; the overhead cost of running government in Ministries, Departments and Agencies (MDAs), to reduce the budget deficit to a manageable level of three per cent of output while boosting infrastructure investment to create jobs.


Minister of Finance, Dr. Okonjo-Iweala (right) and Minister of State for Finance, Dr Yaya Lawal during a press briefing, in Abuja, yesterday. Photo: Gbemiga Olamikan.

Finance Minister and Coordinator of the Economy, Dr. Ngozi Okonjo-Iweala, said yesterday while speaking on fiscal discipline and freeing more funds from recurrent budget for more attention on capital. She said the move would affect all arms of government and all categories of staff.


According to her, the current situation where recurrent budget takes an entire 75 per cent of total budget could not support the type of aggressive capital development that Nigerians yearn for and must therefore be addressed in such a way that it could be reasonably reduced. Continuing she said "We need to change the budget process in this country. We can not bring a budget and then have reservations that go back and forth. The executive has its responsibility and I hope the lawmakers will also take responsibility. By 2013 we will have a much saner budget process.”

Macro-economic stability

In her maiden press briefing in Abuja she said: "We need to maintain macroeconomic stability. We need to manage our fiscal situation in a more prudent manner. Monetary and fiscal policies must work hand-in-hand." On fuel subsidy, she said: "There has been a lot of debate on fuel subsidies and we have all resolved that (removing it) is a good direction to go on. You have to leave it to us to decide when it is prudent to do so."

Ngozi Okonjo-Iweala said: "Nigeria will reduce recurrent expenditure by at least one per cent a year in the next four years, which would bring it down to 70 per cent of the budget by 2014. Recurrent spending accounts for 74 per cent of the country's N4.5 trillion budget. The minister said she favoured the Central Bank's policy of pegging the naira to the dollar to provide stability for businesses, and promised to work with Governor Lamido Sanusi to have an exchange rate that "reflects the economy."

Okonjo-Iweala further said that Nigeria’s total debt figure is currently $39.7 billion which is about 20 per cent of its Gross Domestic Product, GDP, even as she unveiled the priority sectors with which to drive the economy.

She said she would critically review the borrowing processes with a view to reducing the rate, especially the domestic debt. Her words: “One of the things we would do is to pay attention to the debt situation. I know that many Nigerians are looking at it with concern, and you know my stand on debts. We have about N5.2 trillion in domestic debts and about $5.3 billion in external debts bringing total debt figures to $39.7 billion which is about 20 per cent of GDP, Gross Domestic Product.”

Total debt figure

The minister noted that the total debt figure as a percentage of GDP was not worrisome, as according to her, debt/GDP ratio could become of concern if it hits the 60 per cent threshold, in line with international norm. She said the external debt was “extremely low” but that the domestic debts mainly in Federal Government Bonds and Treasury Bills would be brought down through a systematic approach.

She identified job creation, building critical infrastructure especially electric power and roads/ rails, anti-corruption, agriculture, manufacturing, fiscal discipline, investment climate reforms, housing, entertainment, as well as, oil & gas as sectors of immediate focus. She told journalists that Nigeria was not used to trade-offs but that this administration would do so by paying greater attention to the priority sectors.

According to her, “this is not to say that other sectors are not important. It is just that we need to prioritise in the economy. One thing we are not used to doing is creating trade-offs and saying which are the key sectors, we need to focus on. So now we have to make some trade-offs.”

Okonjo-Iweaal warned that addressing the present challenges won’t be easy and that she did not have the magic wand for a quick-fix. She assured, however, that with the cooperation of good spirited Nigerians, the National Economic Implementation Team won’t disappoint. She said: “The present situation is not going to be an easy one and if you have a budget coming, you have to make choices.”

Specifically on power, the minister said, “All Nigerians know and many opinion surveys have shown that the thing that Nigerians are most interested in is improving our infrastructure in this country. Something that they can see with their eyes; power and roads as well as the rail and air transport. Nigerians are keen to see improvements and this is very important for us.”

She said that the problems bedeviling the Nigerian economy were built up over a long period of time and that Nigerians should not expect a magic wand from her in the efforts to fix the economy. “I have talked of the challenges that we face. There is no magic wand. I have seen some people writing about one magic wand that will be waved. Certainly not by me, I do not have any magic. There is no single person who can solve the problems of this country. We are a team here in the Ministry of Finance. The President has created the Economic Management Team and we have an Economic Management Implementation Team, because the other team is large, we need a core of people to push implementation.

Implementation team

“We will do the much we can but we can’t promise magic but we have got this implementation team that the President has inaugurated and we will do our best taking these problems one-by-one and trying to push on all fronts.”

On the Sovereign Wealth Fund which governors have called for its suspension, Dr. Okonjo-Iweala disclosed that the executive had engaged the governors with a view to convincing them to allow it to be established as earlier agreed. She said that the federal government recognised the reality of the recent review in workers= wages but that she was convinced that the governors also realised that the nation had just one economy.

“They are reasonable people. We are talking, we are dialoguing and I am sure we will come to a conclusion that would be beneficial to the economy.”

Nigeria's reliance on oil exports meant fiscal prudence was even more important given the volatility of global oil prices in recent months during the crisis in North Africa, the minister said.

Dollar crashes in parallel market as CBN intervenes

Meanwhile the dollar yesterday crashed to N160 at the parallel foreign exchange market following the sale of $50 million special intervention foreign exchange to bureaux de change by the Central Bank of Nigeria (CBN).

As at the close of business yesterday the parallel market exchange rate had fallen to N160 per dollar from N163 on Tuesday and N165 on Monday.

AThe rates have been going down rapidly since morning. Some people are selling as low as N158 per dollar@, said Harrison Owoh, Chief Executive H.J Trust BDC

The increased supply, which is aimed at narrowing the gap between the official and parallel market exchange rate is being offered through five banks at stipulated exchange rate.

It was gathered that the $50 million foreign exchange is different from the usual autonomous foreign exchange which banks sell to BDCs, and it is also different from the $100,000 weekly official foreign exchange sale to BDCs.

The special foreign exchange sale represents the third measure by the apex bank to address the gap between the official and parallel market exchange rates which rose sharply to N14 in July from less than N4 in June in response to the limit imposed on amount of foreign exchange banks can sell to BDCs. The limit which was introduce by the CBN on June 24th pegged bank=s sale of autonomous dollars to BDCs at $250,000 per week per bank.

This caused severe demand gap in the retail-end of the market, which propelled the parallel market exchange rate to rise as high as N167 per dollar. The concomitant wide gap between the official and parallel market exchange rate induced upsurge in foreign exchange round-tripping as foreign exchange operators particularly the banks and oil firms exploited the wide gap to make huge profit.

http://odili.net/news/source/2011/aug/25/326.html

https://www.thenewblackmagazine.com/Photofiles/clinton-iweala.jpg

afam4eva:
Why do they want NDDC to be scrapped?

Reading between the lines the want the money given to the NDDC diverted for the improvement of roads in the SW.

Crazy dudes,

How far?

Has the hurricane arrived yet?

Keep NL posted. . . . . .

GEJ should have just chased them out of the room.

Why even answer their questions.

SMH

We allow the 'Chinese' to hustle in Naija in peace.

How often do we go around doing immigration raids and deporting 'Chinese'.

I think we need to send out a message by revoking some prominent 'Chinese' businessmen's visa's and throwing them out of the country.

That may prompt the 'Chinese' to show some respect.

[flash=400,400]
https://www.youtube.com/watch?v=owpltcMJzHk&feature=related[/flash]

[flash=400,400]
https://www.youtube.com/watch?v=nUdLcrqoJB4&feature=feedrec[/flash]

Obodo999:
At first, I thought my wife was the poster. My wife of 8 yrs wants a separation after 3 kids because I have not work for 3 yrs due to injuries at work.  We live in UK and I brought her to this country and got her the UK passport. She took the kids away to the  and refused to let me see them. I have told the police that I will rather abandon her and the children and I will return to naija to start a new life. I have no desire to start applying to court for access to see my own children.

LOL -

It still may be your wife - maybe she's changed a few details.

Check her computer ohhh - dont take your eyes of her.

She's plotting. . . . . .

keepingmum:
we are from different tribes. My only concern is my child. How he'll cope without both parents attention and love like he's been used to. He's family in Nigeria have been aware that he isnt employed as they've visited us for extended periods of time and saw the "home" as it were. My MIL says i should stay put in my home and do whatever my husband asks of me.
I have no intention or desire of badmouthing him however i feel like i've given this marriage my best shot, i've given it my all and i dont have anything left to give.
For those of you who keep bringing up the facebook friend thing, let me make it clear that i knew that guy before i met my hubby, he asked me out several times before i met my hubby, if i wanted to date this "guy" wont i have done it then? The fact that i said no to him at the time when i had no obligations should make you realise that i'm not silly to leave my marriage because of another man (frankly, someone i havent seen in 8yrs or had a meaningful conversation with i'd term as a stranger).
I am just tired of the verbal and emotional abuse and threat i get from my husband who feels that insecure and believes its my responsibility to earn his trust and i've made it clear to him that if after 7years of marriage he cannot trust me, then we shouldnt be married. Besides i am a firm believer that you should never date or marry someone you dont trust to avoid heartbreaks/tumoils

If your concern is the child then you stay married.

If your concern is yourself then you get divorced.

If your concern is your FB lover + your child then you start having an affair but dont divorce.

If your concern is your FB lover + yourself then you divorce your present husband and marry your FB lover.

End of story,

Send him packing back to his fathers compound.

That's what I would do if I had a useless wife.

In the first instance report him to his people in Naija - they have a duty to talk to him.

If that doesn't work then try a tempoary seperation before divorce.

Once you divorce you will permanently have a negative stigma attached to you.

Some of you need to go and prepare - start saying your last confessions and preparing your wills.

As for me, I'm watching some 'Katrina' videos before the main event.

God punish America.

Later - 

[flash=400,400]
https://www.youtube.com/watch?v=IblL_rXpdu8&feature=related[/flash]

[quote author=tpia@ link=topic=744741.msg9015504#msg9015504 date=1314382455]@ sun of god

the west being screwed will not prevent your african brothers and sisters overcrowding the embassies and hopping on anything smoking that can get them out of there.[/quote]I beg to differ - opinions are changing.

[quote author=Ileke-IdI link=topic=744741.msg9015499#msg9015499 date=1314382423]^^^ Why? What about  Nigerians here? [/quote]Collateral damage - no big deal.

I'm sure Nigeria will survive.

[quote author=Ileke-IdI link=topic=744741.msg9015452#msg9015452 date=1314381988]People will be trying to escape for their lives, not to loot. But if they want, the hurricane can carry them away with their loots.

Sun god, are you praying for your own FREE share of amerikka's wealth? Just dont get caught with 5 packs of FREE chewing gum.[/quote]I'm only interested in the demise of the 'west' - and so far this year has been quite enjoyable.

Europe is screwed - America is screwed.

America cant afford to pay its debts and certainly cannot afford to rebuild after natural disasters.

I dont think all these things are happening by coincidence.

May God continue to punish America and the rest of the 'western' world.

If i'm not mistaken, the last time there was a power cut in NY there was serious looting.

Yanks can expect the same again if it disrupts power supplies.

Mayhem awaits the east coast - I'm gonna buy some popcorn now and then sit back and enjoy the spectacle.

God punish America.

I see the rich whites are fleeing - and the poor blacks are here yapping on NL -

Hurricane Gaddafi Irene - Level that wicked country.

[img]http://in.reuters.com/resources/r/?m=02&d=20080225&t=2&i=3282403&w=460&fh=&fw=&ll=&pl=&r=img-2008-02-25T173917Z_01_NOOTR_RTRMDNC_0_India-321367-1[/img]

GEJ vocabulary doesn't extend that far - that statement was prepared by the UN and handed to GEJ to release.

William Hague released an identical statement - and somehow I cant see now the two of them will use the same terminology.

Beaf:
Nigeria is beginning to see the result of our foolish romance with religion.
Only fools mix religion and politics, it started with sharia, graduated to boko haram, even our CBN talked of Islamic banking and now it is almost certain this is al qaeda taking advantage.

What is wrong with Nigerians? Sometimes it seems we were created by satan.

Please retract this statement - I find it slightly offensive.

Nigeria has agents of evil but we are not all the same.

Any politicians killed?
Any UN people killed?

HERE'S MY POINT:

How about OKONJO-IWEALA implement a similar measure in Naija.

Go for the serving and ex politicians who have stashed billions abroad - earning interest while Nigeria suffers.

A list of all serving and ex politicians should be compiled immediately and submitted to the swiss authorities.

Taxing them 70% of the interest they earn on looted funds is fair -

or better still get that fellow ignoramous 'Waziri' to make a genuine attempt to recover some of these funds.

Britain is on the brink of signing an agreement that could see the Exchequer receive billions of pounds in tax from the Swiss bank accounts of wealthy Britons.

As much as £125billion is thought to have been squirrelled away in Switzerland by the rich, out of the reach of the Revenue.

But under the new deal, they would now have to pay between 25 per cent and 35 per cent on the interest they earn on those secretive accounts.

Account holders will be given a certificate stating they paid tax on their Swiss accounts to show to the Revenue if any queries are raised.

Britain has been negotiating with Swiss authorities for months and officials hope to announce a deal this week.

But Revenue sources warned the deal might take longer since the technical negotiations were unpredictable.
Tax campaigners say Britain should not be doing a deal with the Swiss because higher-rate taxpayers would still be paying a lower rate in Switzerland than on any deposits in Britain.

British officials argue the priority is to get some cash from Swiss accounts, which until now have been untouchable.

The deal could net billions for the Exchequer


Read more: http://www.thisismoney.co.uk/money/news/article-2028446/Wealthy-Britons-pay-UK-tax-Swiss-accounts.html#ixzz1W4PRwKzp

His gold no longer exists - they've spent it!!!

Let hope other countries dont follow suit - the 'West' have been selling non existant gold for centuries.

[quote author=Chyz* link=topic=743808.msg8999378#msg8999378 date=1314217333]@OP, you're an idiott. Obviously this report is beyond your comprehension. The subsidies are going to be removed no time soon but until the economy(which includes the citizens) is booming and more defined. Have you ever heard of the "Reform Agenda"? Read the quote below slowly, then read it again. That should help with understanding why there is even a subsidy:[/quote]Stop showing off your ignorance. . . . .

Do we have any functioning refineries in place that can meet the demand of Nigerian consumers?

How about she talks about investing in refineries before she considers removing the subsidies.

That's too hard for her or her colleagues - but its easy to hit the poor through increased living costs.

If we refined our oil we wouldn't need to import petroleum products with foreign currency at extortionate prices.

Hence the need for the subsidies until we have our own refining infrastructure in place.

The woman admits this will hit the poor hardest - yet still thinks it a good idea.

By Joe Brock ABUJA, Aug 24 (Reuters) - http://www.cnbc.com/id/44257498

Nigeria needs to diversify away from a reliance on oil, reduce public spending, boost job creation and finish failing infrastructure projects, the country's top new economic overseer said on Wednesday. Coordinator of the Economy and Finance Minister Ngozi Okonjo-Iweala said Nigeria should try to reduce recurrent expenditure by at least 1 percent a year in the remainder of the administration, which would bring it down to 70 percent of the budget by 2014.

Okonjo-Iweala, a former World Bank managing director, also said fuel subsidies would be ended on a timescale yet to be decided and pledged to keep sub-Saharan Africa's second-largest economy within a 3 percent fiscal deficit target. "We need to work harder. We need to maintain macro-economic stability. We need to manage our fiscal system in a more prudent manner. We can start with recurrent expenditure," she told reporters in the capital Abuja. Okonjo-Iweala, who was sworn into her new role last week, said Nigeria's cumbersome budget process had to be changed. But she said fiscal and budgetary changes would take a long time.

Government offices often spend months without knowing how much money they have for the year. Political wrangling meant President Goodluck Jonathan only signed the 2011 budget into law at the end of May. "We need to change the budget process in this country. We can't bring a budget and then have reservations that go back and forth. The executive has its responsibility and I hope the lawmakers will also take responsibility.

By 2013 we will have a much saner budget process," Okonjo-Iweala said. Nigeria's reliance on oil exports meant fiscal prudence was even more important given the volatility of global oil prices in recent months during the crisis in North Africa, the minister said. Okonjo-Iweala, who has been given broad powers over the economy, was this week made the head of an economic implementation team. She said the president was also keen to diversify the economy with security, entertainment and agriculture sectors that should be targeted for growth. "When one considers the non-oil revenue collection ratio as a share of GDP, Nigeria lags well behind other peer economies," said Razia Khan, head of Africa research at Standard Chartered. SPENDING HIGH "

Any effort to address this might yield faster fiscal consolidation, but it is also clear that spending pressures - with the state at the centre of so much of the reform effort, especially when it comes to infrastructure - will remain intense," Khan added. There are over 150 Nigerian firms outside the oil sector planning to invest 1.5 trillion nigerian naira ($9.6 billion) in the next 12-months, Trade and Investment Minister Olusegun Aganga said in Lagos this week. Former Finance Minister Aganga said investment included 900 billion naira from the conglomerate Dangote Group, 45 billion from Nigerian Bottling Company and 225 million from Guinness Nigeria.

In order to help these businesses grow the economy and boost job creation, the state needs to improve infrastructure and remove barriers for investors, Okonjo-Iweala said. "We need to look at infrastructure as an enabler for the economy. Power, roads, things that will help business, which will drive economic growth. We need to focus on current incomplete projects, not starting too many new ones." The woeful power supply situation in Africa's most populous nation is one of the most pressing issues for most Nigerians and is holding back economic growth. Nigeria has the world's seventh-largest natural gas reserves, yet is blighted by persistent electricity outages which force businesses and individuals who can afford them to rely on diesel generators.

Its focus on making short-term gains on crude exports means that despite being the world's fifth-largest oil exporter last year, Nigeria has to import most of its fuel needs due to a lack of investment in refining infrastructure. The increased costs associated with fuel importation and corruption within the industry means the government pays costly subsidies to temper the price for Nigerians, but these will be removed, Okonjo-Iweala said. Most Nigerians live on $2 a day and ending fuel subsidies is a contentious issue as many believe it is the only benefit they receive from living in an oil-rich country. "

There has been a lot of debate on fuel subsidies and we have all resolved that (removing it) is a good direction to go on. You have to leave it to us to decide when it is prudent to do so," she told reporters. ($1 = 155.940 Nigerian Nairas) (Additional reporting by Oludare Mayowa; Editing by Marius

blink182:
Sorry to burst your bubble but recurrent expenditure is all encompassing

Ok - watch this space.

Do you think she can lay off politicians?
Do you think she can cut their wages?

All encompassing - my arsse,

Embrace him with your suicide vest i beg . . . .

Silly people. , . .

You cant see what she's saying.

By recurrent spending she means civil servants and those on the Federal Govt payroll - not politicians.

The politicians will keep on eating - its the man on the street that's about to feel the wrath of this woman.

We should already know whats coming - By cuts she means she will bring 'Austerity' to Nigeria.

We're in for some hard times - trust me.