The Federal Ministry of Finance is responsible for the management and control of all finances of the Federal Government as prescribed by the constitution of the country.

---

Detail News

Nigeria Poised For Strong Economic Recovery – Babalola
Friday, November 13, 2009 Nigeria Poised For Strong Economic Recovery – Babalola …Advises All Tiers of Govt To Adopt Structural Reforms To Sustain Economic Recovery …Urges Banks To Bolster Economy Through Prudent Lending The Honourable Minister of State for Finance, Mr. Remi Babalola, on Friday was upbeat about Nigeria overcoming the current economic slowdown and up-scaling its growth potentials, going by developments in the economy. He also advised the three tiers of government to adopt some strategic structural reforms to help them sustain economic recovery over the medium term and particularly protect those tiers that are most vulnerable. Babalola, who presided over the monthly Federation Account Allocation Committee (FAAC) held at the Sheraton Hotel and Towers, Abuja , asserted that the Nigerian economy is poised for a strong economic recovery. He hinged his optimism on the surge in oil production, crude oil price rebound as well as the accommodative monetary policy of the monetary authorities. The minister, in a paper titled “Bridging the Development Gap”, was encouraged by the positive outlook for the country. He said, “Bonny light price has increased 70 per cent, year-to-date closing at $79 per barrel. Our production level is improving and gradually approaching our OPEC quota level. The major risk and binding constraint to our economic buoyancy in the short-run is the contraction of the credit squeeze. “We therefore call on our money centre banks to resume prudent lending immediately as their pivotal role in bolstering the economy cannot be overemphasised. The automatic fiscal policy inherent in our budgetary system and discretionary fiscal stimulus from excess crude releases cannot replace financial intermediation. “It is only lending activities to small and medium enterprises that can engender growth for the real sector in the long-run and not an unsustainable fiscal stimulant.” In addressing the global economic slowdown through fiscal measures, the minister disclosed that the Federal Government had increased expenditures in the areas it considered fiscally sustainable during the trying times to ameliorate the situation. He, however, explained that the adoption of structural reforms by all levels of government and combined with the government’s expansionary fiscal policies would help to protect some tiers of government that are most vulnerable. The FAAC chairman advised the tiers of government to take advantage of the huge opportunities provided by the economic meltdown to ensure that the next wave of growth is more inclusive to accommodate all Nigerians. “Investment in infrastructure, institutions, the environment and basic health and education, combined with greater cooperation and integration, will help make that happen. “I believe we can all rise to the challenge and build a stronger, stable, more equitable and more prosperous future, with opportunities to participate in and benefit from growth extending to all our citizens,” Babalola said. On the Federation Account, the minister revealed that a total sum of N354.303 billion was distributed among the federal, state and local governments from the revenue generated in October 2009. Statutory allocation accounted for N165.624 billion of the total distributed revenue, while Value Added Tax and Budget Augmentation amounted to N39.778 billion and N121.228 billion, respectively. It will be recalled that the three tiers of government had last month shared a total sum of N350.724 billion, made up of statutory allocation of N235.121 billion, Value Added Tax of N36.530 billion and budget augmentation of N51.193 billion. The FAAC meeting was attended by the Accountant General of the Federation, Alhaji Ibrahim Dankwambo; Director of Home Finance in the Federal Ministry of Finance, Mr. Lexy Omoha; commissioners for finance and accountants-general from the 36 States, and representatives of the Governors’ Forum and the Revenue Mobilisation, Allocation and Fiscal Commission. Others who attended the monthly FAAC meeting were representatives of the Economic and Financial Crimes Commission (EFCC), Debt Management Office (DMO) and the revenue collection agencies such as the Nigerian National Petroleum Corporation, Federal Inland Revenue Service, Nigeria Customs Service and Department of Petroleum Resources. This news was created on 11/13/2009