The Minister of Finance, Mrs. Kemi Adeosun speaking over the weekend at the KPMG CFO Forum held at Eko Hotel in Lagos said the Federal Government would raise about $4.5 billion from multiple external sources, including the Eurobond market, to plug its budget deficit. Since the drastic fall of crude oil price globally, which has now led to the naira hitting record lows on the parallel market amid dwindling foreign exchange reserves, considering the fact that crude oil accounted for 95 percent of Nigeria’s foreign earnings. In order to manage the very devastating economic situation of the country and generate revenue from other sources to run the economy, here is what the Buhari-led government has been up to lately – INFORMATION NIGERIA brings you 5 crucial things to know from her presentation in this piece…
1. Mrs Adeosun stated that FG payroll bill in January 2016 was 5billion naira less than that of December 2015, and this is as a result of the many fraudulent ghost accounts that got delisted. The plan according to the Minister is to save 10billion monthly.
2. The Minister noted that the BVN has reduced instances where hundreds of accounts are opened in a Bank and put on the payroll sameday. The implication of this according to the Minister is that bank managers, who engaged in this fradulent practice will soon be arrested and tried.
3. 50% of the 2016 budget borrowing will be funded from external sources. This is because government plans to reduce domestic borrowing to fund budget deficit as to ‘force’ banks to lend to the productive sector.
4. The Minister revealed that Govt spent 18.5billion on Stationery and office consumables in 2015 while total spend on capital expenditure was 18.9billion. In order to reduce the cost and ensure efficient and effective supply, government is re-negotiating all contracts of supply.
5. The Minister said the government plans to build a self-sustaining economy, regardless of how much crude oil costs in the world.
Do you think this is achievable???