ADVERTISEMENT
The Sun Nigeria
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
The Sun Nigeria
No Result
View All Result
ADVERTISEMENT
Ley Your Dreams Come Alive – With FCMB Loans
Home Cover

The way forward for the economy

22nd October 2018
in Cover, Editorial
0
Way forward for the economy of Nigeria

Udoma Udoma Minister of Budget and National Planning

6
SHARES
884
VIEWS
Share on FacebookShare on Twitter

As a result of the recent warning by the International Monetary Fund (IMF) to Nigeria to halt her rising debt stock, fast track structural reforms and diversify the revenue base or face imminent crisis, the Federal Government has acknowledged that the concerns raised at the IMF/World Bank annual meetings in Bali, Indonesia, require a new strategy for revenue and debt management. Therefore, it has reassured investors of renewed plan to broaden the revenue base and ensure debt sustainability.

READ ALSO: IMF’s timely warning

Currently, Nigeria’s debt profile stands at N22.3trn as at June 30, 2018, while debt servicing in 2017 was N1.8trn and N2.1trn in the 2018 budget. But fiscal plan shows a shortfall of N2.426trn, just as foreign direct investment inflow has declined sharply in the last two years. However, the Minister of National Planning, Udoma Udoma, and the Director-General of the Debt Management Office (DMO), Patience Oniha, said there is a silver lining in the horizon as government has evolved strategies to rev up the earnings capacity by broadening the tax base and maintaining fiscal discipline.

This is one of the ways forward for the economy, which is said to be threatened by another recession. But the focus should be on diversification and debt management. It is instructive that government has admitted that Nigeria’s debt-to-revenue ratio remains abysmally low and therefore vulnerable to both domestic and external shocks.

Are you a Man 40 yrs and above? Do not miss the Vital Information, it goes off in 2 days! CLICH HERE to READ .

As IMF cautioned, Nigeria should not be tempted to delay reforms in spite of rising oil prices. Available statistics show that oil production challenges in the second quarter of 2018, reduced agricultural output and flooding in the agricultural belt of the country distorted expectations and resulted in reduced growth projection to 2.1 percent. Due to high rate of our population growth, Nigeria needs much higher growth rate in agriculture for the people to feel the impact of any economic growth. IMF’s projection for Nigeria in 2018 is 1.9 percent, which is slightly lower than government’s projected growth rate.

All things considered, government should put policies that will make the economy withstand vulnerabilities. There is urgent need to create more jobs for the rising youth population whose unemployment rate is put at over 38 per cent. Although government has announced plans to diversify the economy, the fruits of such efforts are coming slowly. The CBN’s provision of N500bn agriculture loan to farmers under the Anchor Borrowers programme to boost local food production is a good development.

READ ALSO: NIRSAL, CBN and Anchor Borrowers Programme

However, this must go together with developing other non-oil sectors of the economy. To achieve our dream of self-sufficiency in food production and boost the revenue base, government should tackle all threats to food production. The government must summon the political will to find permanent solution to the herdsmen menace.

100% Natural Herbs to Finally End Premature Ejaculation, Weak Erection and Small Manhood. >>>Click Here for Details<<< .
Breaking!!! Earn up to N2 - N3 million monthly GUARANTEED (all paid in US Dollars). No training or refereal required. Do business with top USA companies like Amazon, Tesla, Facebook, IBM, Netflix, Zoom, etc. Learn more .

Similarly, government should look into the reported decline in the inflow of foreign direct investment into the country, which dipped to 8-year low of $982m in 2017. This is far from what is expected of an economy that wants to be in the league of 20 largest economies in the world in 2020. That dream is growing thin by the day. But the DMO boss said that for FDI to impact positively on diversification, it will take longer term to mature.

While this may be true, the present security challenges seem to hamper the prospects of FDI inflows. We maintain that while our economy has potentials to ramp up growth, it is yet to receive the necessary boost that can withstand the shocks that pushed it into recession. We also share the observation of both the IMF and World Bank that though government’s Economic Recovery and Growth Plan (ERGP) may have brought optimism, the blueprint has not yet impacted on the non-oil sector.

Premature Ejaculation & "Small Joystick" Resolved in 7Days... Click Here For Details .

Sadly, Nigeria still retains higher fiscal deficits, driven by weak revenue generation amid continued tighter domestic financing conditions and external borrowings. Nonetheless, there may be a silver lining at the end of dark economic tunnel if both the fiscal and monetary authorities play their roles well.

Recently, the Governor of the CBN, Godwin Emefiele, said the apex bank would be more interested in the stability of the naira than a bigger foreign reserve. While that makes economic sense, there is need for a growth-friendly fiscal adjustment that will be tailored to enhance revenue generation and check rising debt profile.

READ ALSO: Nigeria’s rising debt profile

 

Tags: anchor borrowers programmebalicbnCBN governordebt managementdebt management officedebt profiledebt sustainabilitydebt-to-revenue ratioDMOeconomyERGPexternal borrowingsFDIfood productiongodwin emefielegovernmentIMFIMF/World Bank annual meetingsindonesianon-oil sectorsoil pricespatienc onihapopulation growthrevenuerevenue generationself-sufficiencyudoma udoma
David

David

Sun News Online team

Related Posts

Presidential primaries: APC, PDP narrow race to 9
Cover

Presidential primaries: APC, PDP narrow race to 9

21st May 2022
2023: Nigeria needs leader that has audacity to take risks –Jack-Rich
Cover

2023: Nigeria needs leader that has audacity to take risks –Jack-Rich

21st May 2022
Boy, 14, escapes death  from ritualist
Cover

Lagos: Police arrest six suspects over Lekki killing

21st May 2022
Next Post
In search of political mentors (8): The outsider unsung political hero

In search of political mentors (8): The outsider unsung political hero

Edouard Prunier: What Is the Growth Mindset and How Can It Propel You to Success

Edouard Prunier: What Is the Growth Mindset and How Can It Propel You to Success

Saudi monarch in the eye of the storm

Saudi monarch in the eye of the storm

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ADVERTISEMENT

Highlights

Words of wisdom from the Okoturos: Things to do to prevent divorce in your marriage

Managing conflicts in marriage (part 2)

I don’t need a man to experience orgasm –Amara Maduka

I find it funny when people think I’m married to Mr Macaroni –Kemi Ikuseedun (Mummy Wa)

How Abasi won N1m in Aforevo Nollywood screenwriting contest

My ordeal with preeclampsia -Shine Begho

Trending

ASEPA staff kills boy in Abia over waste disposal 
Politics

Abia primaries: Court ties PDP NWC’s hands, orders use of only 3-man adhoc delegates

21st May 2022
0

  Barely 48 hours after the Independent National Electoral Commission (INEC) expressly declared that three-man adhoc delegates...

Methodist Bishop, Onuoha declares for Abia governorship race

Methodist Bishop, Onuoha declares for Abia governorship race

21st May 2022
Winning with the Nigerian spirit

Dr Yemi Ogunbiyi on Newspaper leadership, Stanley Macebuh way

21st May 2022
Words of wisdom from the Okoturos: Things to do to prevent divorce in your marriage

Words of wisdom from the Okoturos: Things to do to prevent divorce in your marriage

21st May 2022
Be ye holy for I am holy (2)

Managing conflicts in marriage (part 2)

21st May 2022

Follow us on social media:

Latest News

  • Abia primaries: Court ties PDP NWC’s hands, orders use of only 3-man adhoc delegates
  • Methodist Bishop, Onuoha declares for Abia governorship race
  • Dr Yemi Ogunbiyi on Newspaper leadership, Stanley Macebuh way
  • Words of wisdom from the Okoturos: Things to do to prevent divorce in your marriage
  • Managing conflicts in marriage (part 2)
  • I don’t need a man to experience orgasm –Amara Maduka
  • I find it funny when people think I’m married to Mr Macaroni –Kemi Ikuseedun (Mummy Wa)
  • How Abasi won N1m in Aforevo Nollywood screenwriting contest
  • My ordeal with preeclampsia -Shine Begho
  • Chux Onyenyeonwu: I set out to write best historical novel ever
  • Rebel Cattle: Ohakim charges Nigerians to listen to Musa
  • Iquo Diana Abasi presents poetry album
  • Oil tycoon, Folorunso Alakija’s new N60bn luxury tower ready
  • Seinye Lulu-Briggs’ tale of triumphs
  • When Tokunbo Wahab shut down Banana Island
  • Celebrated architect, Fifi Ejindu hits diamond
  • Lucky Igbokwe to break the status quo
  • ASUU: Between the graveyard and a nation
  • Genevieve Nnaji: My thoughts, love and prayers are with you
  • 2023: Tinubu, Amaechi, Tambuwal, others woo delegates

Categories

  • Abuja Metro
  • Anambra Watch
  • Arts
  • Broken Tongues
  • Business
  • Business Week
  • Cartoons
  • Citizen Joe
  • Columns
  • Cover
  • Culture
  • Duro Onabule
  • Editorial
  • Education Review
  • Effect
  • Elections
  • Entertainment
  • Events
  • Features
  • Femi Adesina
  • Food & Drinks
  • Frank Talk
  • Funke Egbemode
  • Gallery
  • Global Square by Kenneth Okonkwo
  • Health
  • Insights
  • Kalu Leadership Series
  • Kunle Solaja
  • Kunle Solaja
  • Letters
  • Lifeline
  • Lifestyle
  • Literary Review
  • Marketing Matters
  • Muiz Banire
  • National
  • News
  • Offside Musings
  • Opinion
  • oriental news
  • Politics
  • Press Release
  • PressClips
  • Public Sphere
  • Ralph Egbu
  • Shola Oshunkeye
  • Sideview
  • South-west Magazine
  • Sponsored Post
  • Sporting Sun
  • Sports
  • Sun Girl
  • Tea Time
  • The Flipside – Eric Osagie
  • The Sun Awards Live
  • The Sun TV
  • Thoughts & Talks
  • Time Out
  • Today's cover
  • Tola Adeniyi
  • Travel
  • Travel & Tourism
  • Trending
  • TSWeekend
  • Turf Game
  • Uncategorized
  • Updates
  • Views from Abroad
  • Voices
  • World
  • World News
  • Home
  • About Us
  • Paper Ad Rate
  • Online Ad Rate
  • The Team
  • Contact Us
  • Privacy Policy

© 2019 The Sun Nigeria - Managed by Netsera.

No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun

© 2019 The Sun Nigeria - Managed by Netsera.

Posting....