Economic Crisis: The worst is over —Finance Minister

Posted by News Express | 27 May 2016 | 2,388 times

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Nigeria is returning to growth driven by the clear decisions to unlock her full potential, Finance Minister Kemi Adeosun said yesterday.

She declared during her Sectoral Debate Presentation to the House of Representatives on the Outlook of the Nigerian Economy that the worst is over.

“Nigeria has faced a tough economic landscape in the past 24 months but we believe that toughest period is behind us even as we learn and recalibrate policy choices,” Mrs. Adeosun told

The lawmakers. “Efforts made thus far have helped Nigeria remain more stable than other oil producers,” she said.

On the goals, plans and strategies of the Muhammadu Buhari administration, the minister said: “Unlocking full potential is our policy goal and that means putting the economy on a path to double digit growth. In the near term, growth will be catalysed by three factors: Boosting the quality and scope of government infrastructure and related spend; Removing the opportunity and incentive for corruption, Rebalancing government finances to stabilise the fiscal picture.”

Continuing, Mrs. Adeosun said: “Growth will also be enabled by other measures being taken in concert with the Central Bank and key MDAs to lower the cost of doing business, improve sector level attractiveness, strengthen regulatory institutions, drive import substitution and boost SMEs. The outcome will be an economy positioned for self-reinforcing recovery, a rise in private capital formation as investors commit to Nigeria, culminating in a return to shared prosperity by 2017 – 2018.”

Acknowledging the country’s present economic challenges, the minister said: “In real terms, household per capita income has been under pressure in the past 24 -36 months, causing a drag on aggregate demand.

“That trough has had tough implications for the economy. Corporations have therefore seen their revenues and profitability come under significant pressure, reducing their willingness to employ or take investment risks; job losses have followed.

“Investment return on government spend has been sub-optimal, with negative knock on effects on company operating spend and capital formation.

“Continued high cost of infrastructure, weak regulatory institutions, and poor ease of doing business are a brake on growth.

“The net effect is a slow down in overall growth, capital formation, employment, and household well being.”

Mrs. Adeosun, however, ended her presentation o a positive note, announcing: “Nigeria’s economy is rebuilding from a trough.”

•Photo shows Kemi Adeosun.


Source: News Express

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