Co-ordinating Minister for the Economy and
Minister of Finance, Dr. Ngozi Okonjo-Iweala, Tuesday said contrary to
the perception in some quarters, the executive had been diligently
implementing the 2013 Appropriation Act and was not waiting for the
amendment it proposed to the National Assembly.
Okonjo-Iweala stated this when she met with the Joint House Committees on Appropriation and Finance to clarify some of her statements on the state of the economy.
The minister debunked the accusations that she predicted the collapse of the economy, stressing that she only warned of the consequences of the non-passage of the budget amendment bill currently pending before the National Assembly. Okonjo-Iweala also reiterated her earlier position that the federal government may run into difficulties paying salaries by September unless the National Assembly restored the N38 billion removed from the budget during its passage.
On the implementation of the 2013 budget, she added that so far, N600 billion had been released as the capital component of the budget while N585. 7 billion had been cash backed and therefore available to the ministries, departments and agencies (MDAs). Similarly, she disclosed that the capital component of the budget had attained 67 per cent utilisation.
According to her, N400 billion was released in the first quarter while N200 billion was released in the second quarter of the year. However, she said the economy was facing challenges on two fronts, namely: dwindling oil revenue and low receipts from Customs duties.
On the first area of concern, she said the economy was suffering due to the problem of pipeline vandalism, crude oil theft and frequent shutdown of oil pipelines by oil firms once the pipes were compromised by the vandals.
Okonjo-Iweala explained that given the outlook of the global economy, particularly with the discovery of shale oil and the cut down on Nigeria's oil exports to the United States, there was need for the country to take seriously the need for the diversification of its economy. The minister hinted that the diversification had started already with the growth recorded in local rice production, adding that it was also this growth that has reduced the importation of food into the country and reduction in revenue from the Nigeria Customs.
Okonjo-Iweala stated this when she met with the Joint House Committees on Appropriation and Finance to clarify some of her statements on the state of the economy.
The minister debunked the accusations that she predicted the collapse of the economy, stressing that she only warned of the consequences of the non-passage of the budget amendment bill currently pending before the National Assembly. Okonjo-Iweala also reiterated her earlier position that the federal government may run into difficulties paying salaries by September unless the National Assembly restored the N38 billion removed from the budget during its passage.
On the implementation of the 2013 budget, she added that so far, N600 billion had been released as the capital component of the budget while N585. 7 billion had been cash backed and therefore available to the ministries, departments and agencies (MDAs). Similarly, she disclosed that the capital component of the budget had attained 67 per cent utilisation.
According to her, N400 billion was released in the first quarter while N200 billion was released in the second quarter of the year. However, she said the economy was facing challenges on two fronts, namely: dwindling oil revenue and low receipts from Customs duties.
On the first area of concern, she said the economy was suffering due to the problem of pipeline vandalism, crude oil theft and frequent shutdown of oil pipelines by oil firms once the pipes were compromised by the vandals.
Okonjo-Iweala explained that given the outlook of the global economy, particularly with the discovery of shale oil and the cut down on Nigeria's oil exports to the United States, there was need for the country to take seriously the need for the diversification of its economy. The minister hinted that the diversification had started already with the growth recorded in local rice production, adding that it was also this growth that has reduced the importation of food into the country and reduction in revenue from the Nigeria Customs.
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