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HOUSE CONCLUDES SECTORIAL DEBATE ON DIVERSIFICATION OF THE ECONOMY

HOUSE CONCLUDES SECTORIAL DEBATE ON DIVERSIFICATION OF THE ECONOMY
The House of Representatives has concluded its interactive sessions with select Ministers of the Federal Republic of Nigeria on the real issues of diversifying the nation's economy. It was the turn of the Hon. Minister of Finance, Kemi Adeosun during plenary on Thursday, May 26, 2016 to inform the House on the strategies and measures taken by the Ministry to diversify the economy. She made a presentation of what the real state of the nation's economic situation is, stating that the declining GDP growth was accelerated in 2014 with slide in Oil price; adding that vulnerabilities of the economy were taken for granted during the Oil boom. “Decline in Oil price has had a huge negative impact on the economy.

The Finance Minister informed that her Ministry is addressing the issue of economic diversification by tackling both the historic and current challenges that have contributed to the economic development. She pointed out weak fiscal discipline, revenue leakages and corruption as the fulcrum of the problems, reiterating that fighting corruption and inefficiency is the way to go. She recapped some of the strategic steps being adopted by the Efficiency Unit set up by the Ministry. She said with the policy of unlocking full potential, the E-Unit is working round the clock to ensure that money is spent prudently and on prioritized projects as well.

Adeosun posited that to achieve fiscal sustainability, the nation must not rely on Oil, calling for more attention to be given to alternative revenue generating areas such as Passport fees, landing charges from Airlines, taxes etc. she revealed that most Companies in the Oil sector receiving subsidy payment from the country have not been registered for tax payments. Also, that effort is being intensified to ensure that every body doing business in Nigeria pays its fair share of taxes. In addition, the Minister mentioned that steps are being taken to have automated Customs Assessment Service; pledging to increase the salary of staff of the Nigeria Customs Service.

Furthermore, she informed that the Ministry is currently doing a "clean up" exercise which has eliminated about 23,000 ghost workers. “We are working in collaboration with the Economic and Financial Crimes Commission to recover money and tackle organized fraud in the system", she posited. She hinted on plans to approach the challenges via sound economic initiatives, monetary policy and improvement of the business environment. She concluded by agreeing with the idea that to diversify the economy is extremely positive.

The Whip of the House, Hon. Ado Dogwa called on the Minister to reverse the unhealthy tradition where Heads of Ministries, Departments and Agencies including the National Assembly go to the Finance Ministry to lobby for fund releases. He stated that every item contained in the Appropriation Act is a priority project and should not be treated otherwise by the Ministry.

Meanwhile, the House has received the 2016 FCT Budget proposal sent to the National Assembly by President Muhammadu Buhari for consideration.

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