I have a feeling US is planning a counter measure.if u catch ma drift.
The Minister of Finance and Coordinating Minister
of the Economy, Dr. Ngozi Okonjo-Iweala, has
appealed to Nigerians to tighten their belts ahead
of the stringent economic measures being
proposed by the Federal Government.
This new development follows a drop in oil price
in the global market.
Addressing a Special Media Briefing in Abuja on
Sunday, Dr Okonjo-Iweala declared that the
Federal Ministry of Finance has been keeping a
close eye on movements in global oil prices
because of the critical importance of oil as the
country’s most important source of revenue.
As part of the response, the Medium Term
Expenditure Framework (MTEF) and the 2015
Budget proposal to the National Assembly have
been revised. As a result, the federal government
will be proposing a benchmark of $73 dollars per
barrel to the National Assembly compared to the
earlier proposed benchmark of $78.
Dr. Iweala told journalists in Abuja today that the
austerity measure being proposed are meant to
cushion the effect of the oil price drop.
She said government will increase revenue
collection targets for the Federal Inland Revenue
Service (FIRS) from N75 to N160 billion, place
restrictions on international travels in the public
service and surcharge on luxury items for high
income earners, among others.
“Foreign travel will have to be funded by those
inviting civil or public servants and all expenses
paid by the inviting body. Same goes for training,
local training will be encouraged but expenses for
foreign training will be borne by inviting foreign
host with permission sought from Head of Service
(HoS). Evidence of sponsorship detailing all
expenses paid for by inviting body must be
tendered before HoS will grant approval.
“I am not sure of what direction to take with
taxes but that a key initiative on the revenue side
is a surcharge on luxury items details of which
are being worked out. Government’s efforts from
now will be to increase Internally Generated
Revenue (IGR) of entities and ensure that they
remit these IGRs on time to government coffers.
This economy has to stop talking about oil.
“Printing money without adequate revenue
support will lead to serious consequences for the
country. It will spur spiral inflation as the
experiences of Germany in the early part of the
last century and more recently, Argentina and
Zimbabwe demonstrate. This prescription will
victimize the poor and middle class that it is
supposedly protecting.” she added.
She however noted that the economy “continues
to exhibit strength but government will not
compensate by borrowing or printing currency but
will borrow at very low interest rate and no large
domestic borrowing.”
Channels.
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