The Minister of Finance, Kemi Adeosun, has pointed out how the President Muhammadu Buhari-led Federal Government plans to restructure the Nigerian economy through borrowing, targeted investment and diversified growth.
Adeosun outlined the current government’s economic blue print while addressing captains of industries at the Lagos Business School breakfast meeting in Lagos State.
She said: “We must collectively adopt a blueprint that equips the future generations to be creative and dynamic, that allows us to articulate a vision of a Nigeria, with a strong educational foundation; rich in depth of knowledge with a breadth of skills, an expansive infrastructure capable of servicing the needs of a nation of 150 million Nigerians.”
Detailing what she described as an “expansionary budget for investment and growth,” the Minister said, “We must find the money, and create a system that enables targeted expenditure, based on the nation’s priorities.
This expenditure will be efficient and impactful, focused on creating wealth for the majority.”
Adeosun pointed out that the N1.8 trillion in borrowing was meant to invest in areas of priorities like, transport, roads, housing, power and health.
She said, “We are committed to a countercyclical budget expenditure model. This has been a success in other nations, offsetting the risk of recession and creating an economy which is not based on either fragile consumer spending or over-reliance on oil.”
Adeosun also identified the four economic pillars of Buhari’s administration to include; Stimulating economic growth to achieve a real GDP growth of 4.2% in 2017; Reduce the cost of governance and strengthen institutions to combat corruption extract inefficiencies in public service; increase government expenditure on infrastructure and fund the budget deficit and negative trade balance cost effectively.
Warning those that think the current borrowing would open the door to renewed fiscal indiscipline, the Minister stressed that she plans to continue her “aggressive programme of fiscal housekeeping.”
“We must safeguard this borrowing, ensuring that the wastage within the existing systems are firmly addressed.
We cannot mortgage our future based on a system that has failed us for generations.
We must be careful in our borrowing and prudent in utilization,” she said.