The Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, has a word of advice for the incoming government- diversify revenue sources.
Mrs. Okonjo-Iweala, who spoke yesterday in Washington DC, on the theme: “Beyond the oil” at a forum tagged: “A conversation with Ngozi Okonjo-Iweala”, said the result of the rebasing of the economy demonstrated that there are diverse sources of revenue which the government can tap from.
Part of the revelation of that exercise, she said, is that the government can actually increase its revenue profile by depeening and expanding its tax collection drive. In achieving this, she said, the government engaged the services of a foreign tax consultant. The measure brought in additional $500million into its coffers last year.
Mrs. Okonjo-Iweala said if consistently pursued, the measure could fetch the government $3billion over the medium-term.
Mrs. Okonjo-Iweala, who spared no kind word for politicians bent on spending almost everything that comes into the government’s coffers, stressed the need for the government to rebuild its buffers.
She said considerable political will was exerted in the Olusegun Obasanjo administration to set funds aside for the Excess Crude Account and save for the rainy day. The then government was able to pull that through because there was no strong opposition then, pointing out that the vibrant opposition in the present dispensation and the tendency by the governments at the states’ level to always insist on sharing all government revenues, have combined to deplete the Excess Crude Account. “This was not quite right. Sharing of ECA continued, which was not proper,” she said, adding that the depletion continued because the political will the government had changed..
She said the incoming government should also tinker with the option of raising the Value Added Tax (VAT), which in its present five per cent level, she pointed out, is the lowest in the world. Raising the margin by another five per cent, Mrs. Okonjo-Iweala argued, would make a difference in increasing revenue. She said the proposal is already included in the 2015 budget before the National Assembly.
“We can look at other taxes, like the VAT, which is in the budget for 2015. We have the lowest VAT in the world, which can be doubled. This can bring another $3billion into the revenue profile,” Mrs. Okonjo-Iweala said, adding that these steps are needed to drive the economy beyond oil.
She said President Goodluck Jonathan’s position, which she is recommending to the incoming government, is to reverse the ratio of crude oil-Non oil contribution to revenue from 70%-30% in favour of oil, to Non oil- crude oil contribution of 70%-30% in favour of Non-oil over the next 10 years.
Mrs. Okonjo-Iweala, who continually stressed that this year would be particularly difficult for Nigeria, economically, said the hardship occassioned by the drop in crude prices, should serve as an incentive and a wake-up call to diversify the economy, rather than a challenge.
“We shoild see the drop in the price of oil, not as a difficult thing (it is very difficult with the drop in revenue by 50 per cent), but it’s also an opportunity for the country to pursue this diversification agenda,” she stressed.
The Minister, who spoke on a wide range of issues, impressed on the need for the incoming Gen. Muhammadu Buhari administration to build institutions designed to fight corruption.
She called for reforms in the oil sector.
The Nigerian National Petroleum Corporation (NNPC), she said, should be restructutred and the Petroleum Industry Bill should be passed.
Mrs. Okonjo-Iweala’s presentation was witnessed by a one time Lagos State Commissioner for Finance Mr. Wale Edun, Nigeria’s Ambassador to the US, Professor Ade Adefuye, Director of Budget, Dr. Bright Okogu and the former Executive Chairman of the Federal Inland Revenue Service, Mrs. Imoigui Ifueko-Okauru, amongst other personalities. The programme was moderated by Ambassador Princeton N. Lyman, former US Special Envoy for Sudan and South Sudan. Click to signup for FREE news updates, latest information and hottest gists everyday
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Medicine after death. You were in charge for six years and part took in running the country aground. You are now quick in teaching the coming administration the way to go. Enough mrs. Sabi. Buhari has its team and they will decide the way to go.
ReplyDeleteYou have spoken my mind
DeleteHear her, tax collection drive, foreign tax consultant, more VAT... After all the rubbish you have done, you have lost the right to give any further advice. Outside diversification, your recommendations will cause further hardship on the already impoverished masses, who are in that condition because of your policies over the past 10 years. This would also make the new government quite unpopular. One would think that having served with Obasanjo, there would have been some continuity. The only continuity was to chop the country to the marrow. All your policies were pain and poverty inflicting on the populace further impoverishing them. You now blame politicians. You were the Minister of Finance, the buck stops at your table. That $20 Billion is still unaccounted for. This is just a drop in the ocean of vicious avarice by you and your cohorts in rapacious looting of the national treasury and our common wealth. You and the Minister of Petroleum have a lot to answer for.
ReplyDeleteNgo baby, Pls. oooooooooooooooooooo!!!!! save your advice now. It is not in need by the coming government. The advice that you and Jonah cannot use or implement! It will not work in the new dispensation. Thank you.
ReplyDeleteIs the formal commissioner of finance for Lagos state (Mr Wale Edun) warming up to become the next minister of finance?
ReplyDelete#Time shall tell...
This woman amazes me. When Prof. Charles Chukwuma Soludo raised some issues agaist Mrs. Ngozi Okonjo-Iweala, some people felt that Prof. Soludo was looking for a job in Goodluck Jonathan's government, little did they know that the Prof was actually going to somewhere. Now Mrs. Finance and Coordinating Minister, please do not advice Buhari and his team. They already know what to do. When people were trying to advice you and your Oga, you never saw any good in their advice. Please save this country some embarrassment. We have had enough of your economic acumen and skills. Please preserve them for some other time. Forward Ever-Backward Never. I am really disappointed in you Ngozi.
ReplyDeleteMY magician buhari & his team of miracle workers, please come & do the wonders the north & west voted you in for. #tribalisticpeople #xenophobia #superstory
ReplyDeleteyou are a fool
DeleteDestroyer that is her new name with so called madueke.
ReplyDeleteNigeria is the only country that pays the lowest vat and other taxes. You foget that those countries have working public amenities which are funded from the proceeds of taxes. Here we pay tax and we provide our self electricity for business. We provide ourselves water. No access for funds.......etc. There is no justification for further tax rise. Fix our basic amenities m
DeleteWorld expert! Enough of your theories. Your Ebele goaded Nigerians into believing that you have the formula of creating job and that bringing you back into government would solve the unemployment issue. We are all witnesses to your role in the last oil subsidy episode which was at the verge of tearing the country into pieces but for the cleverly intervention of the gun bearers. Nigerians have not forgotten how your click diverted the money accruing into your oversea accounts. Now you want to pose as an adviser with a common sense theory which every body knows. Special Adviser indeed!!!
ReplyDeleteWorld expert! Enough of your theories. Your Ebele goaded Nigerians into believing that you have the formula of creating job and that bringing you back into government would solve the unemployment issue. We are all witnesses to your role in the last oil subsidy episode which was at the verge of tearing the country into pieces but for the cleverly intervention of the gun bearers. Nigerians have not forgotten how your click diverted the money accruing into your oversea accounts. Now you want to pose as an adviser with a common sense theory which every body knows. Special Adviser indeed!!!
ReplyDelete