Ngozi Iweala Replies Critics ,Says Nigeria Is Not Broke

The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, has dismissed insinuations that the country was broke, explaining that the fact that oil prices had declined in recent times did not translate to an economy that is broke.

Giving a scorecard of her ministry in the last one year in Abuja on Tuesday, she argued that as long as the country continues to meet its financial obligations, the issue of being broke does not arise.

She also disclosed that over N2.4 trillion additional financing, outside annual budgetary provisions had been mobilised from global multilateral agencies and financial institutions across the world to enable various ministries, departments and agencies (MDAs) of the federal government to execute sectoral projects across the country in the last few years.

Efforts to plug leakages in the system through the  introduction of the Integrated Payroll and Personnel Information System (IPPIS) and Government Integrated Financial and Management Information System (GIFMIS) also yielded further dividends with the uncovering of 60,000 ‘ghost workers’ which led to a savings of N160 billion.

Okonjo-Iweala, said the ministry had been relentless in mobilising additional financing for the various sectors, including agriculture, power, transport, works, water, aviation, and Information Communication Technology (ICT) among others.
She stated that about N97 billion was mobilised for the Ministry of Agriculture from such agencies as the Food and Agriculture Organisation (FAO), multilateral financial institutions as well as the China Eximbank, which helped it in its aggressive revolution in the sector.

The minister also disclosed that the Second Niger Bridge also got about N80 billion mobilised for while another $200 million is being pursued from the China Eximbank.

The East-West Road also got N50 billion (about N230 million) to ensure its completion while the water sector got $1.7 billion and $1.5 billion for the power sector by way of guarantees and direct financing.

She stated that $100 million was mobilised for the ICT sector to pursue the Galaxy Backbone infrastructure project, just as the aviation sector attracted $500 million China Eximbank facility to build five new terminals in five airports across the country.
The minister also listed another $500 million for the Abuja Light Rail project, $570 million for the Ministry of Environment, and $277 million health sector financing, among others.

Okonjo-Iweala, who took time to explain steps being taken to sustain a robust macroeconomic fundamentals, said although the global economy is in a period of volatility with reversed growth, the federal government was proactively taking steps to ensure that neither the falling oil prices arising from market forces nor quantity shocks would affect the economy negatively.

According to her, although the United States of America, which used to be the biggest importer of Nigeria’s oil is no longer buying from the country, India and China had become major importers of the product.

She noted that  in spite of the global economic downturn witnessed especially by the Euro zone area, emerging economy has continued to record an impressive growth.

The minister argued that if the Nigerian economy was not growing as being bandied in some quarters, the rate of unemployment and poverty would have been worse.

According to her, the government had continued to maintain a tight fiscal deficit, noting that fiscal deficit stood at 1.4 per of the GDP last year; 1.03 per cent in 2014 and is being targeted at around 1 per cent in 2015.

The minister also disclosed that borrowing, particularly at the domestic front has been declining, while the country has been adjudged globally to be low in foreign debt.

Okonjo-Iweala stated that the few  foreign loans taken by the country were at very concessionary rates of little or no interest rate, with repayment window designed to commence after ten years.

On the recently launched mortgage refinance scheme, the minister said efforts at bridging the 66,000 applications received  had been channelled to 22 lending firms for processing for  mortgage loans, adding that applicants will soon receive acceptance letters from the lenders .

Answering questions on how the $1 billion loan for the procurement of  arms for the military to prosecute the war against insurgency in some parts of the country is to be repaid,  she said the repayment would be “from our resources.”

She added that since more arms started coming in, the tempo of the war was in favour of the Nigerian military in recent times.

Okonjo-Iweala also disclosed that efforts to plug leakages in the system recently yielded dividends as 60, 000 ghost workers were uncovered, leading to savings of N160 billion.

 

According to her, the report had been lodged with the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate and fish out the culprits.
The minister said this was the right thing to do as the ministry lacked the wherewithal to investigate, adding that every support needed by the ICPC in carrying out the investigations would be extended to it by her ministry.

 

It will be recalled that Governor Babtunde Raji Fashola of Lagos State last week raised an alarm that the Federal government was broke