Nigerian Economy Is Stable - Finance Ministry

// Latest Addition | Nigerian Economy Is Stable - Finance Ministry
Email to a friend Plain text Print version // Font size: Decrease font Enlarge font

Nigerian Economy Is Stable – Finance Ministry 

The Ministry of Finance has joined the effort by the Federal Government to re-assure Nigerians that the country's economy remains on a sound footing, despite the global economic uncertainty.

The Ministry in a statement referred to numerous comments and articles in the media, questioned the performance of the nation's economy as well as cast doubt over the management of the Excess Crude Account and the External Reserves of the country.

While promising to continue to make effort to respond to demands for greater transparency in the management of the nation's revenues, the Ministry declared: "The Nigerian economy is strong. Our economic performance is robust when viewed against a whole range of objective factors. Inflation is now down to single-digit at 9.0% in January 2013, compared with 12.6% in January 2012. The exchange rate has been relatively stable, and the fiscal deficit at just under 2% of GDP is on a downward trajectory, and below our threshold of 3% of GDP.

"Our national debt is at a sustainable level at about 19.4% of GDP. Overall, GDP growth for 2012 was 6.5%, and projected at 6.75% for 2013, compared with the projected global growth of 3.5%. The above facts have been independently noted and validated by international ratings agencies (such as Fitch, Standard & Poor's and Moody's) who have upgraded the country’s economic outlook, even as other countries are being downgraded. In addition, Nigeria’s bonds have recently been included in the Barclays and JP Morgan Emerging Market indices."

The ministry urged Nigerians to stop denigrating the efforts being made to correct things that are wrong in the system, maintaining that the current administration is focused on diversifying and growing the economy "through investments in agriculture, housing and construction, manufacturing, aviation, power, roads, rail, solid minerals and the information and communication technology (ICT) sectors by both government and the private sector," adding that the economy is certainly moving in the right direction.

On the external reserves, the ministry explained the three part components to be made up of "the CBN's external reserves, the Excess Crude Account, and the Federal Government’s funds belonging to agencies such as the Nigerian National Petroleum Corporation for joint venture cash calls and so on. This is simply a matter of definition, and follows international best practices and reporting guidelines."

On the claims of inconsistency of account balances provided by the Ministry of Finance and the CBN, the statement said: "It is worth noting that the Ministry of Finance typically reports its balances following Federal Accounts Allocation Committee (FAAC) Meetings, which often take place at the middle of the month, whereas CBN data are reported at the end of each month. There is thus a time lag between the reports from the two institutions.

"As a result, there are usually some differences due to 'transit items' which are yet to be reconciled in both accounts. In addition, for quite a while, the CBN excess crude reports have included the $1 billion allocated to the Sovereign Wealth Fund as this is still domiciled with the CBN, whereas the Ministry of Finance does not regard it as part of the distributable Excess Crude Account."

More

ACN is myopic

The perception of the Finance Minister was reiterated by the Senior Special Assistant to President Goodluck Jonathan on Public Affairs, Doyin Okupe who in a statement described the claim by the Action Congress of Nigeria (ACN) that the nation's economy in danger of collapse as lacking in substance and runs contrary to the verdicts of reputable international rating agencies who have consistently upgraded the country's economic ratings in the last one and a half years.

The statement signed by Mr Okupe reads: "For a fact, there are incidents of crude oil theft which had existed for several decades before this administration came on board. However, the truth is that this is currently being tackled through proactive steps by the government. The opposition is most probably aware of the fact that President Goodluck Jonathan recently secured the co-operation of the Prime Minister of the United Kingdom and French President on measures to prevent refineries in Europe from buying crude oil stolen from Nigeria."

"Similarly, the Jonathan administration has provided more and better surveillance boats for the Nigerian Navy to enhance patrol of our coastal waters. This has resulted in arrest of several vessels engaged in oil theft and these were well reported in the Nigerian print and electronic media."

Mr Okupe drew the attention of the opposition political party to the Petroleum Industry Bill currently before the National Assembly which it says was conceived by President Jonathan to provide for best practice processes for acreage availability, bidding and awards and therefore address the problems of dwindling oil and gas exploratory opportunities, and corruption among other problems in the sector.

"One wonders if the ACN would have ignored the ratings by FITCH, STANDARD & POOR'S, MOODY'S and JP MORGAN if those bodies had turned in a negative verdict on the Nigerian economy. The only conclusion one can draw from this is that the opposition has once again chosen the myopic and jaundiced path of public policy analysis rather that base its assessment on verifiable, objective indices. Unfortunately, a matter as sensitive as a Nation's economy ought not to be subjected to this fashion of blind politicking."

While assuring Nigerians that the Federal Government remains committed to implementing sound economic policies and development of the Nation's infrastructure, the presidency urged politicians to exhibit statesmanship in addressing issues of critical nature rather than seeking to score cheap points in desperate manner.

The Action Congress of Nigeria (ACN) had raised an alert of an impending collapse of the nation’s economy, unless the Federal Government cuts the 'astronomical cost' of running governance and takes urgent measures to diversify the Nigerian economy and shore up the nation’s production of crude oil.

Tagged : No tags for this article

Headlines Newsview all

D'banj Dragged To Court Over Debt Mess

This are indeed not the best times for koko master, and has a matter of fact this is the first time I am hearing D’banj ... Full story

Femi Fani-Kayode insults Governor Rotimi Amaechi - 'You are a pot bellied, house boy, monkey and cultist'

In a Facebook post titled The Pot-bellied Creek Haramite And His Direct Threat, former Aviation minister Femi Fani Kayode slammed River State governor, Rotimi Amaechi, ...

Fresh Boko Haram Attack In Borno State Leaves 45 Dead!

At least 45 people were killed in a suspected Boko Haram attack in northeast Nigeria, officials and witnesses said on Thursday, in the latest violence ... Full story

Nebraska Man Erected A Roadside Sign That Read: 'Aids, Ebola, Obama. Thank You Africa'

A hateful roadside sign blaming Africa for disease and Barrack Obama was erected by a man near a highway in Minden, Nebraska, and was soon ... Full story

President Goodluck Jonathan Says Nigeria Is Winning Boko Haram War

President Goodluck Jonathan on Friday said contrary to media reports, the Federal Government had started winning the war against the Boko Haram sect. He boasted that ...

T.B. Joshua Says He Has A Cure For Ebola

Sensational Nigerian Christian leader, Prophet T.B. Joshua, has thrown a challenge to the governments of countries where persons have contracted the Ebola virus, to invite ... Full story

Super Eagles Of Nigeria Crash Out Of 2015 AFCON

African champions Nigeria crashed out of the 2015 Africa Cup of Nations on Wednesday after playing a 2-2 draw with Bafana Bafana of South Africa ... Full story

Pandemonium, Confusion In National Assembly, Speaker Of The House Aminu Tambuwal Tear-Gassed

Tension is mounting in the National Assembly as the House of Representatives reconvenes today for a special sitting. The assembly is under siege as armed security ...

Miss Honduras found dead after vanishing two days before she was due to fly to London for Miss World contest

Reigning Miss Honduras Maria Jose Alvarado and her older sister have been found dead in a small village almost a week after their disappearance. The champion ... Full story

Katsina Governor Ibrahim Shema Caught On Video Urging Supporters To “Crush And Kill” Political Opponents

A video showing Katsina state governor, Ibrahim Shema urging and gearing his party members to physically assault and also kill opposition party members if they can has surfaced online.  The ...

Lagos Lawyer Sebastian Jidonu Seeks Justice Over Police Brutality

On October 18, when Sebastian Jidonu, a lawyer, walked into the office of the Area K Police Command in Morogbo, near Badagry to settle a ... Full story

Comment on: Nigerian Economy Is Stable - Finance Ministry

Rate this article

0

Featured author

Henrietta Smith

Breaking News

Breaking News: ChazB Of Rhythm FM Confirmed Dead

Charles Bruce Chukuma, popularly known as Chaz B on Rhythm FM is dead. Chazb who was the anchor of sharinglifeissues on the Rhythm93.7 Network died early ...

Top Comic Trending Pics: Daddy Why Do You Always Go Out With Broom?

Disclaimer: Do not use this forum as a channel to promote hatred, tribalism or any other kind of personal grievances. The administration can delete or ...

I Don’t Wish to Get Married……Flavour Nabania

Nigeria’s handsome and female’s choice singer, Flavour Nabania, is well rated and widely adored with his style of music which keeps him on top of ...

Recipies: Learn to cook local Cow Tail Stew

Well prepared cow tail stew can be served with rice and it can also be used to prepare pepper soup Ingredients 3lb 5oz (11/5kg) cowtail trimmed and ...

Dejo Tunfulu Escapes Death As He Almost Bled To Death On Movie Location

This is painfully not the best of times for Yoruba actor, Mac-Tokunbo popularly known as Dejo Tunfulu. It was reported that the script interpreter was on ...

What is Funke Akindele & Malaika Not Telling Their Fans?

A particular suspicious picture of Nollywood actress Funke Akindele and her casual friend, Fuji star Suleiman Alao Adekunle Malaika has dominated the the Internet since ...

Marriage Has Made Me A Better Person- Charles Inojie

Nollywood star, Charles Inojie has indeed pitched a tent for himself in the make-believe world, thus needs no further introduction. The Edo-State born actor who doubles ...

Shan George Plans To Return To 'Jericho'

The latest Nollywood grandmother, Shan George is heading to greater heights in her movie career. The 2-time married actress who's first son just had a baby ...

Don Jazzy's Dorobucci Turned Into A Movie

Nigeria film industry never seem to stop amazing their fans and patronizers with different kind of adaptation of musics and turning them to movies. The had ...

Has Genevieve Nnaji Married Secretly?

Classic Nollywood super mama, Genevieve Nnaji has kept tongues busy since she was last spotted at the recently concluded Africa International Film Festival event that ...