• 35 states apply for N90b loan
The Federal Government has already pumped N109billion of its promised N350billion into the economy, the Minister of Finance, Mrs. Kemi Adeosun, has said.
Mrs. Adeosun, who spoke on Channels Television Programme – Sunrise, yesterday, said the balance of the amount is being held back because of the need to meet with due process requirements.
She said: “N109billion out of the N350billion has already been disbursed. The funds are ready, however, there are procedural delays, due to the required public procurement processes.”
She said 35 states have applied to access the N90 billion loan earmarked by the Federal Government to boost state governments’ fiscal sustainability capabilities, saying the states “are in the process of submitting the required documentation which are being reviewed.”
The finance minister stated that monthly disbursements to each state will be conditional on compliance with pre-agreed Fiscal Sustainability Plan (FSP) milestones.
She said if Nigeria is to achieve sustainable growth, it needs a planned approach to financial discipline, targeted investment and economic diversification, pointing out that government’s Economic Plan is strong on fiscal discipline.
In her words: “The people know we need to get our country working, and to do that, we need to do three things: get the country’s spending in check with firm financial controls, raise money for targeted investment in much needed infrastructure and see us diversify the economy from a damaging dependence on oil.”
The minister who addressed a wide range of issues, said the diversification of the economy will increase when each state starts to increase their Internally Generated Revenue (IGR), adding that this would create local jobs and expand wealth within the states.
She cited Kebbi State as one state that has taken the initiative to increase its production of rice as a means of increasing its IGR.
“Ultimately, when we collectively expand IGR, we generate more jobs and create more wealth,” stating that other states have different resources that can be developed to generate IGR within their domain.
Mrs. Adeosun said the the economic blueprint is about putting in place the financial pillars to enable states to work effectively and efficiently with the Federal Government, stressing that getting this right will enable “states to be critical economic drivers for prosperity and pillars of professional probity.”
She expressed optimism that Nigeria would eventually overcome the current challenges, saying that the higher revenue collection and the greater sharing of non-oil earnings are indications that the reforms are starting to work.
On the new foreign exchange policy, she said: “We are happy with the new FX policy. This was the missing link between monetary and fiscal policy and we are happy that it is now in place. It is supply and demand driven.”
On her ministry’s decision not to reinstate special bonus and overtime payments paid to civil servants in 2013/2014, she said: “This is part of the same clear goal of ensuring fiscal discipline. We recognise the value of our staff and have made sure salaries are paid and we’ve worked hard to avoid redundancies. Although I understand the disappointment some staff may have, any special payments wouldn’t be appropriate and there simply aren’t any provisions to pay out the N 1.2billion. We need to return fiscal discipline not just to the Ministry of Finance, but to every arm of government.”
Mrs. Adeosun however said any delayed legitimate overtime payments will be paid. “The Director of Finance and Administration will address these and ensure that they are paid. Staff will get what they are legally entitled to.
“The task now is for management and staff of the ministry to work together to achieve the goals of the administration: real reform through financial discipline, providing targeted investment and diversifying our economy. The staff work hard and they are committed so they must be paid what they are due,” she stated.
She said state governments have a key role in diversifying the economy, saying the whole essence of the reform is to improve accountability and transparency, increase public revenue, rationalise public expenditure, improve public financial management and ensure sustainable debt management.
