Even as Nigeria battles the economic recession, many government agencies, individuals as well as organisations like the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) are upbeat that the country will overcome this situation soon. DAVID AGBA reports.
In spite of the blame game over who caused the present economic recession witnessed in Nigeria currently, Former President Olusegun Obasanjo recently made a number of recommendations to the federal government as the surest way of getting out of the current economic downturn.
He believes that the government needs to spend less, earn more, and borrow its way out of the recession.
Obasanjo spoke in Abeokuta, the Ogun State capital, yesterday at the National Council on Finance and Economic Development (NACOFED) conference with the theme: “Enhancing Revenue Generation and Obtaining Best Value for Money in Expenditure”.
The former president said: “We are spending more than what we earn, so we must borrow as quickly as possible. Let us meet with those who can lend us under reasonable interests rates.”
He said that what the country was witnessing was not unexpected, adding: “I foresaw it two years go. So let us find out the things we can do without, we should instill discipline to cut spending. Also, when we have inflation, it affects everything including local production.”
He observed that the major problem with Nigeria stemmed from the fact that the country spends more than it earns and had not been able to save for the “rainy day”.
He, however, pointed out that funds could be sourced from outside the country and advised Nigeria to approach its allies that could lend to the country under reasonable terms.
He warned, however, that no nation would part with its funds without observing that the federal government was taking practical steps to institute critical reforms, saying that Nigeria must encourage production to earn more and broaden its revenue base.
He said since the nation was not in control of oil prices, it needed to diversify the economy and concentrate on the things it could control.
In line with the foregoing, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), on its part expressed optimism on the quick recovery of the Nigerian economy from the effects of the economic recession which bites harder and negatively impacts on the socio—economic living conditions of the Nigerian populace.
Speaking on the side lines of the just-concluded (NACOFED), Reverend Ajibola Fagboyegun, Chairman of the Commission’s Non-oil Committee observed that the current reforms in fiscal and monetary policies would quicken the nation’s economic recovery. Ajibola recalled that the resilience of the Nigerian economy in times of adversity has always returned the nation to the path of economic growth and sustainable development.
He lauded the Finance Minister, Mrs. Kemi Adeosun for instituting a regime of transparency and accountability in the management of the country’s finances in line with the vision of President Muhammadu Buhari’s administration. In particular, Ajibola hailed the Finance Minister for the healthy synergy between the Ministry and revenue regulatory and generating agencies which would go a long way in reducing revenue leakages and increase remittances into the Federation Account.
The Commission according to the Commissioner also notes with happiness the current efforts to diversify the economy and the fiscal measures initiated by the Minister to get the Country out of the present economic recession just as he also praised the efforts and enthusiasm of the Minister in ensuring efficiency in managing government finances and reducing wasteful spending by Ministries, Departments and Agencies (MDAs) as clearly demonstrated by the establishment of an Efficiency Unit in the Federal Ministry of Finance based on which huge sums of money was recovered.
“More importantly, the Minister of Finance who doubles as the Chairman of the Federation Account Allocation Committee (FAAC) is generally appreciated by Members of FAAC for her ingenuity in coming up with the budget support idea which provided additional funds to ensure that States meet their minimum financial obligations”.
The Commission noted with happiness the current efforts to diversify the economy and the fiscal measures initiated by the Minister to get the Country out of the present economic recession. It would be recalled that the Commission had long before the recession harped on the need for the three tiers of government to embrace economic diversification for enhanced revenue generation and to reduce the over dependence on oil revenues. RMAFC also praised the efforts and enthusiasm of the Minister in ensuring efficiency in managing government finances and reducing wasteful spending by Ministries, Departments and Agencies (MDAs) as clearly demonstrated by the establishment of an Efficiency Unit in the Federal Ministry of Finance based on which huge sums of money was recovered.
Throwing its weight behind the National Economic Council which recently passed a vote of confidence on Mrs. Kemi Adeosun following persistent calls for her sack by vested interests, the Commission strongly believes that removing the Minister at this critical time of economic recovery can only roll back the laudable reforms initiated by her and send wrong signals to the Members of the international community.
