In the light of the recent and continued decline of the
price of crude oil in the international market, the Federal Government
on Thursday said it was preparing additional measures to limit the
impact of the price drop on the Nigerian economy.
The FG also dispelled claims that it had withdrawn the
Medium-Term Expenditure Framework from the National Assembly, adding
that the MTEF and the budget were with the lawmakers.
These were made known by the Minister of Finance, Dr. Ngozi
Okonjo-Iweala, in Abuja while speaking at the launch of the
Action 2015 programme, where she had a dialogue with school children of
15 years of age.
Action 2015 is an international movement
to call for more action in the area of fighting corruption, inequality
and climate change, and it is based on the believe that 2015 can be a
pivotal year that will change the future.
The Finance Minister said the country was
facing a challenging time because of the changes in the global
economy, noting that this had necessitated the need for additional
austerity measures.
Although she did not provide details of the additional measures being planned but She had during a public presentation of
the 2015 budget proposal listed the stoppage of the purchase of new
furniture, and reduction in international travels and trainings by
government officials by 50 per cent as some of the austerity measures to
be taken this year to boost revenue.
Others are the implementation of the
Stephen Orasanye committee’s report on the rationalisation of the civil
service; and introduction of 10 per cent tax on private jets, three per
cent surcharge on champagnes and one per cent property tax on mansions
with value exceeding N300m.
Between December 17, 2014 when the
budget proposal was submitted, with oil benchmark price pegged at $65
per barrel, and now, global oil prices have further crashed to around
$46 per barrel.
The development has further heightened
tension in the country because of the Federal Government’s almost total
dependence on crude oil exports for its revenue
Specifically, Okonjo-Iweala told the
children that 2015 would be a very difficult year for the economy,
noting, however, that with appropriate fiscal and monetary policy
instruments, the government would manage the economy in a manner that
would be beneficial to all.
She said although the country could have
moved faster in achieving its goal in the past, a lot of efforts had
been put in place to ensure that it achieved the Millennium Development
Goals.
The minister gave an assurance that
despite the challenges facing the economy as a result of the drop in oil
prices, the government was prepared to respond with additional
austerity measures.
She said since the budget proposal was
with the National Assembly, the government was monitoring developments
around oil prices in order to come up with appropriate measures once the
decline got to the lowest point.
The minister said, “We have to provide
an environment for the children to grow so that they can become leaders
that will uphold the values that we need such as honesty, hard work,
truth and valuing the country above self.
“Even though the oil price is going
down, the budget is with the National Assembly. Let me just tell you
that measures are being put in place so that we can manage the budget
and the economy at whatever the oil price bottoms out.
“Right now, no one knows the bottom
because it is falling every day. Once it stabilises and we know the
bottom, we will accompany it with appropriate measures. So, we are
working everyday with scenarios; we are following exactly the plan we
told Nigerians.
“There are scenarios at $55, $50 and
below of the additional measures that will be needed, and I believe that
though this will be a very difficult year for the country, we have the
tools, we know how to apply them and we know that working together, we
will be able to take this country through this year and then to a
brighter 2016.”
On what is being done to assist the poor
to mitigate the difficult times, Okonjo-Iweala said although things
might look tough at the moment, the government was building a platform
on which it would assist those at the bottom of the pyramid.
She said. “For one to help lift people
out of poverty, we are doing something that is technological, which is
trying to give every Nigerian a smartcard and your generation will be
the one to mostly appreciate this.
“It will enable us to target those at
the very bottom once they have a card to be able to help them with some
assistance that can assure basic health care and their children being in
school through a conditional cash transfer programme and that programme
is being put together by the President.
“These are some of the things that will target and include more people who are left out now.”
She said the government was working
towards providing an environment for the children to grow so that they
could become leaders who would uphold the values of honesty, hard work,
truth and valuing the country above self.
(PUNCH)
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