The decline in the price of crude oil may have started taking its toll on Nigeria. Minister of Finance and the Co-ordinating Minister for the Economy, Ngozi Okonjo-Iweala, announced austerity measures in Abuja on Sunday while addressing journalists on Government’s response to the crisis.
The measures which will see Nigerians paying more taxes, comes days after President Goodluck Jonathan formally announced his intention to contest the February 14 2015 presidential election.
Some of the measures the minister said are:
A reduction in public expenditures and international travels by public
servants. She however, assured that the Jonathan Economic Management Team was
“on top of the situation” to proffer measures that would help to ensure that the
“common man” did not feel the impact of the oil price decline.
As part of the efforts to reduce expenditure, she said international travel within the public service would now be severely curtailed.
She said, “Every country that is well managed doesn’t just seat and allow a situation to happen to them. If they are well managed, they prepare the right set of policies to deal with the situation.
“Those days when we used to be like that in the ‘80s and 90s are over. In the ‘80s, when we had shocks, we didn’t take measures by ourselves to adjust. We waited for others to come and tell us how to adjust. But now we have competent teams and our job is not to sit and wait, but, to craft a set of policies and that will help us address these shocks.
As part of the efforts to reduce expenditure, she said international travel within the public service would now be severely curtailed.
She said, “Every country that is well managed doesn’t just seat and allow a situation to happen to them. If they are well managed, they prepare the right set of policies to deal with the situation.
“Those days when we used to be like that in the ‘80s and 90s are over. In the ‘80s, when we had shocks, we didn’t take measures by ourselves to adjust. We waited for others to come and tell us how to adjust. But now we have competent teams and our job is not to sit and wait, but, to craft a set of policies and that will help us address these shocks.
She said the Federal Government was keeping an eye on the development, noting
that this was why it come up with a multi-pronged strategic response to mitigate
the adverse effects of global oil price fall on the economy and reassure
investors.
The responses, according to her, are a mix of measures designed to boost non-oil revenues further, to plug loopholes and waste and cut unnecessary expenditures in order to cope with the situation.
Giving details of the responses to the oil price fall, she said that after a careful analysis of the situation, the economic team approved a $5 per barrel reduction in the 2015 budget benchmark price for oil from $78 to $73 per barrel.
How will this affect you and I?
The responses, according to her, are a mix of measures designed to boost non-oil revenues further, to plug loopholes and waste and cut unnecessary expenditures in order to cope with the situation.
Giving details of the responses to the oil price fall, she said that after a careful analysis of the situation, the economic team approved a $5 per barrel reduction in the 2015 budget benchmark price for oil from $78 to $73 per barrel.
How will this affect you and I?
Share your thoughts......................
this is a creative blog
ReplyDeleteWell, that is what the sovereign wealth funds is met to serve, the coordinating minister had planned ahead of this. the knowledgeable ones will always think ahead of time. ... I hope the state governors that were calling for its cancellations/ bring the excess crude oil account for sharing as soon as it accrued; can now understand what it is met for. thanks madam, we do appreciate this , the austerity measure we understand is to reduce excessive spending of those travelling abroad..., and heavy taxes on the luxury goods consumer... its a step toward the right direction. good economics... go ahead ma.
ReplyDeleteAusterity na hin be the latest one.. singing Fela song
ReplyDelete