FINANCE MINISTER BRIEFS SENATE ON NIGERIA’S MONETARY/FISCAL POLICIES
The Honorable Minister of Finance, Kemi Adeosun on Thursday, July 21, 2016 appeared before the Upper Legislative Chamber to shed light on the Monetary/ Fiscal Policies adopted to salvage the current situation in Nigeria.
Addressing the Senate, the Minister hinted that the country’s economy is in a difficult situation as a result of decline in the price of oil globally which she said has at a time plunged to as low as 27 dollar per barrel.
The Minister asserted that the government intends to change the direction of the nation’s economy from oil driven to agriculture, citing that the country hitherto produces 2.2 million barrels of crude oil per day and has a population of 170 million people compared to Saudi Arabia that produces 9.9 million barrels per day with much less population but the current global recession especially in the oil and gas sector has forced a decline in oil and gas output.
The Minister also disclosed that the nation is faced with the burden of high Overhead Cost which affects the execution of Capital Projects, stressing that ultimately, the government has been strategic in its spending; stating that about N79 billion has been spent on road construction and N21.6 billion on agriculture which the government hopes to make the mainstay of the economy if given the desired attention.
On infrastructure, the Minister revealed that government is working very hard to complete inherited projects like those in the railway, road, power, health and other sectors. She however noted that a stable oil price will help boost the nation’s foreign exchange, coupled with the effort of Federal Inland Revenue Services (FIRS) and the Nigeria Customs Service (NCS) whose revenue generation are still stable even with the dwindling economy.
The Finance Minister averred that Nigeria has an incredible bright future if it fully harnesses the potentials in agriculture which can create employment opportunities for the youths, generate wealth for the people, save foreign exchange for the country, improve the economy and reduce importation of food items into Nigeria and feed citizens. In fact, the sector would generate revenue for government to undertake infrastructural development she said.
Nevertheless, the Minister called on the National Assembly to do all it can to revisit the country’s Procurement Law with a view to make it vibrant and address contemporary challenges of Nigeria.
Senators asked questions on the economy, infrastructure, budget implementation, the crises in the Niger Delta, constituency projects, economic recession and more to which the Minister responded satisfactorily after which she was told to take a bow and leave.