‘Nigeria Among Top 10 World Economies’

Date: 07-12-2010 6:07 pm (10 years ago) | Author: Daniel Bosai
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- at 7-12-2010 06:07 PM (10 years ago)
Online (m)
In spite of the economic hardships many Nigerians face daily, the Federal Government yesterday said that the nation’s economy ranked among the top ten in the world in terms of economic growth indices. It said that the introduction of strong fiscal policies and maintenance of a low borrowing level, the economy has experienced much more growth this year than most other countries across the globe.

Minister of Finance, Dr Olusegun Aganga who disclosed this however acknowledged that the said growth has not impacted positively on the lives of the citizenry because it has not translated to job creation.
 Aganga spoke at a public hearing organised by the House of Representatives  Joint Committee on Finance, Aids and Loans  and Debt Management to enable the Federal and State governments as well as their agencies to justify their request for fresh loans under the 2010 External Borrowing Plan.  At the hearing were the Chief Whip of the House, Honourable Emeka Ihedioha; Chairman, House Committee on Finance, Honourable John Enoh, Chairman, House Committee on Donor Agencies, Honourable Nnenna Ukeje  and  Chairman House committee on Aids and loans, Honourable Abdulazeez Yari  all of who made brief presentations to set the tone for the discussion.

“Our economy as of now, regardless of what any one says, is doing well.  We are in the top ten in the world in terms of growth.  But the problem we have which the economic management team is addressing is that our level of unemployment is high.
“Yes, the numbers say we are doing well; Gross Domestic Product (GDP) growth  is high;  our level of borrowing is low compared to any other country;  we are introducing strong fiscal framework, but our level of unemployment is high.
“So we have growth without job creation   and employment; therefore the impact is not felt well enough in the life of the average Nigerian. This is why our focus now is on measuring our success by measuring the jobs we create.  I am hoping that this budget (2011) is going to be a budget that also addresses job creation so that we can have an all inclusive growth,” he said.
He said plans were already on to slash the recurrent expenditure in the 2011 Appropriation Bill and set in motion machineries, programmes and projects that will enhance job creation in the economy.

He disclosed that besides the problem of unemployment, the economy had suffered so much in the past because of the lopsided nature of the annual budgets in favour of recurrent expenditure.
According to Aganga,   the recurrent expenditure  in  successive  national budgets  have been too  large and   have  made  the government unable to invest  enough    on capital projects. He said personnel cost has   increased from N985 billion in 2009 to N1.5 trillion in the current year, a situation he said,  needed to  be changed and will change soon.
 “The other area where we did not so well in the past is the quality and efficiency of spending. In other words you may spend N1.7 trillion in your capital projects but what did it produce? What is the outcome? What has Nigerians gained? What is the benefit of doing that? You may borrow so much from any where but if you don’t use it the right way and on the right project, it is a waste of time and waste of money.

“One of the things we are trying to do from next year is to introduce the attributes of performance based budget. This is to make sure that if I give Federal Ministry of Works or Federal Ministry of Education a certain amount it will be tied to a performance level that Nigerians can see at the end of the day. I will monitor that and I will have a more robust project management programme. If you do not deliver, it goes to Mr President and that will affect what you will get the following year. So we have introduced measures to tighten those areas,” he said.
On the request by the federal Government and some 17 states to secure fresh external loans, Aganga said that while it was not morally desirable to borrow, governments across the world do borrow to supplement their legitimate revenue and enhance their capacity to deliver on development goals.

He disclosed that contrary to the belief in some circles, Nigeria ’s external debt has not really been on the rise since the post 2005 debts pardon and subsequent exit from the London and Paris Clubs of creditors. He said that rather than worry about the current external debt portfolio of $4.8 billion, Nigerians should be more concerned about the domestic debt which currently stood at $28 billion.
He admitted that given the countries past experiences in the hands of foreign creditors, Nigerians should be concerned about borrowing.  Aganga however noted that what was expected of the citizenry was not to merely complain but to demand accountability from the leaders.

He also said that it behoves on every Nigerian including those in government   to ensure that every penny borrowed was properly spent and that government accounts for the loans in the right way. He also said that government has a responsibility to reassure the citizenry of the reasons the loans will be taken.  Aganga said that when the  right controls  are  taken  and  communicated effectively it will become  clear to the average Nigerian why government is borrowing in his name and what that borrowed fund  will be used for.

On long term solutions, Aganga said that the Federal Government has already deployed N5billion from the Excess Crude Account (ECA) into the National Integrated Power Programme to boost electricity supply. Also the Sovereign Wealth Fund (SWF) will soon be established   to ensure that Nigeria saved some of her current earnings from crude oil for the future. The SWF, he said, will be in three components namely, future investment fund, stabilisation fund and infrastructure fund.

Aganga explained that given the fact that  the country’s oil  and gas reserves will be depleted one day, Nigeria needed to save for the future generations, set aside some funds to supplement its budget in times of low oil prices  as well as dedicate a chunk of the Sovereign Wealth Funds to building basic infrastructure that will in turn attract investments to the economy  and create jobs.


Posted: at 7-12-2010 06:07 PM (10 years ago) | Hero
- ladyb4u at 7-12-2010 06:18 PM (10 years ago)
(f)
great Nigeria.................. we still try as we dey Among Top 10 World Economies
we no dey carry last
Posted: at 7-12-2010 06:18 PM (10 years ago) | Newbie
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- kelvinty at 7-12-2010 06:31 PM (10 years ago)
(m)
yes i can read this type of news all day n i ll not b tired, sweet news nice one,let watch n see mayb we nigerian abroad will com back home hehehehe
Posted: at 7-12-2010 06:31 PM (10 years ago) | Upcoming
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- cleverland at 7-12-2010 06:44 PM (10 years ago)
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lf only such programme will be implemented
Posted: at 7-12-2010 06:44 PM (10 years ago) | Newbie
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- devid75 at 7-12-2010 07:17 PM (10 years ago)
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hahahahahah i dey laugh they chillin down with my beer no be small thing ,,Nigeria  hahah
Posted: at 7-12-2010 07:17 PM (10 years ago) | Upcoming
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- kenny0147 at 7-12-2010 07:26 PM (10 years ago)
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Quote from: kelvinty on  7-12-2010 06:31 PM
yes i can read this type of news all day n i ll not b tired, sweet news nice one,let watch n see mayb we nigerian abroad will com back home hehehehe

@Kelvinty, Me i like this kind of news pass you ooo, but b4 we go enter back home make you try as much as possible to pas the kpolica now...I dey the klaro ooo
Peace to Nigeria my Mother Country !!!!!!
Posted: at 7-12-2010 07:26 PM (10 years ago) | Newbie
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- 4kasibe247 at 7-12-2010 08:07 PM (10 years ago)
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thank God 4 d progess in 9ja...
Posted: at 7-12-2010 08:07 PM (10 years ago) | Gistmaniac
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- bafyguy at 7-12-2010 08:15 PM (10 years ago)
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To God be the glory
Posted: at 7-12-2010 08:15 PM (10 years ago) | Gistmaniac
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- Fantastic2m at 7-12-2010 08:23 PM (10 years ago)
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I pray this news correct. . Even at that the government need prove ugh. . . . More job creation n reduction in BRIBERY N  CORRUPTION. . . .
Posted: at 7-12-2010 08:23 PM (10 years ago) | Newbie
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- Freesmile at 7-12-2010 08:31 PM (10 years ago)
(m)
Quote from: ladyb4u on  7-12-2010 06:18 PM
great Nigeria.................. we still try as we dey Among Top 10 World Economies
we no dey carry last

Abi. Grin Grin Grin
Posted: at 7-12-2010 08:31 PM (10 years ago) | Upcoming
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- kelvinty at 7-12-2010 08:59 PM (10 years ago)
(m)
Quote from: kenny0147 on  7-12-2010 07:26 PM
Quote from: kelvinty on  7-12-2010 06:31 PM
yes i can read this type of news all day n i ll not b tired, sweet news nice one,let watch n see mayb we nigerian abroad will com back home hehehehe

@Kelvinty, Me i like this kind of news pass you ooo, but b4 we go enter back home make you try as much as possible to pas the kpolica now...I dey the klaro ooo
Peace to Nigeria my Mother Country !!!!!!
  guy i beg i go pass u the klaroo hehehe nothing do u guy
Posted: at 7-12-2010 08:59 PM (10 years ago) | Upcoming
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- ajanni at 7-12-2010 09:41 PM (10 years ago)
(m)
and that is just a theoritical and not all the theory can be transformed into a pratical , we wants a pratical asspects that will benefits all and sundary
Posted: at 7-12-2010 09:41 PM (10 years ago) | Grande Master
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- ajanni at 7-12-2010 09:42 PM (10 years ago)
(m)
and that is just a theoritical and not all the theory can be transformed into a pratical , we wants a pratical asspects that will benefits all and sundary
Posted: at 7-12-2010 09:42 PM (10 years ago) | Grande Master
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- fineboy at 7-12-2010 09:46 PM (10 years ago)
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lie lie people

Posted: at 7-12-2010 09:46 PM (10 years ago) | Gistmaniac
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- cadanre at 7-12-2010 09:48 PM (10 years ago)
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Who benefited from it then? Nigerians or their leaders (executive and lawmakers)? Nothing change yet. Rainin Wayo kawai!

Posted: at 7-12-2010 09:48 PM (10 years ago) | Hero
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- Freesmile at 7-12-2010 09:54 PM (10 years ago)
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@Ajanni the theory is a necessity for a national change. Instead of criticizing it i suggest we see it as motivation for more national developments!
Posted: at 7-12-2010 09:54 PM (10 years ago) | Upcoming
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- onyimau20 at 7-12-2010 09:56 PM (10 years ago)
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@ cadanre It does not matter who benefitted or not, what matters is that our country is changing for better.
Posted: at 7-12-2010 09:56 PM (10 years ago) | Gistmaniac
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- Freesmile at 7-12-2010 10:09 PM (10 years ago)
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Welcome figures for good developments!
Posted: at 7-12-2010 10:09 PM (10 years ago) | Upcoming
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- LEONE at 7-12-2010 10:13 PM (10 years ago)
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At last some good news.
Posted: at 7-12-2010 10:13 PM (10 years ago) | Upcoming
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- Freesmile at 7-12-2010 10:43 PM (10 years ago)
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great accomplishment
Posted: at 7-12-2010 10:43 PM (10 years ago) | Upcoming
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