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  • Buhari borrowing $3bn loan to refinance Jonathan’s debt – Adeosun

    The Minister of Finance, Mrs. Kemi Adeosun, has said an appreciable percent of the recent loan request by President Muhammadu Buhari would be used to refinance loans taken by the immediate administration of former President Goodluck Jonathan.

    TheNewsGuru.com reports that President Muhammadu Buhari recently wrote the Senate asking for permission to secure the $5.5 billion external loan.

    Mrs. Adeosun, in a statement by her office, said $3 billion of that loan is to refinance the loan by the immediate past administration.

    Read the ministry’s statement below:

    The Minister of Finance, Kemi Adeosun, on Wednesday revealed that the federal government would apply $3 billion in refinancing the legacy debts of the immediate past government.

    The outlay is part of the $5.5 billion foreign loan being sourced from the International Financial Markets.

    The Minister, who appeared on Arise TV’s News Programme, said the proposed $5.5 billion loan was made up of two components – refinancing of heritage debts to the tune of $3 billion and new borrowing of $2.5 billion for the 2017 Budget.

    She said, “Let me explain the $5.5 billion borrowing because there have been some misrepresentations in the media in the last few weeks. The first component of $2.5 billion, represents new external borrowing provided for in the 2017 Appropriation Act to part finance the deficit in that Budget.

    “The borrowing will enable the country to bridge the gap in the 2017 budget currently facing liquidity problem to finance some capital projects.

    “For the second component, we are refinancing existing domestic debt with the US$3 billion external borrowing. This is purely a portfolio restructuring activity that will not result in any increase in the public debt,” she disclosed.

    Ms. Adeosun further noted that the country’s debt puzzlingly rose from N7.9 trillion in June 2013 to N12.1 trillion in June 2015, despite the fact that only 10 per cent of the budget was allocated to capital expenditure when oil price exceeded $120 per barrel.

    She emphasised that the President Muhammadu Buhari-led administration was investing in critical infrastructural projects such as roads, rails and power in order to deliver a fundamental structural change to the economy that would reduce the nation’s exposure to crude oil.

    “Under this dispensation, we are not borrowing to pay salaries. If all we do is to pay salaries, we cannot grow the economy. This Administration is also assiduously working to return Nigeria to a stable economic footing. In light of this, the government adopted an expansionary fiscal policy with an enlarged budget that will be funded in the short term, by borrowing,” Adeosun stated.

    She reassured that the $5.5 billion foreign borrowing was consistent with Nigeria’s Debt Management Strategy, whose main objective was to increase external financing with a view to rebalancing the public debt portfolio in favour of long-term external financing.

    “Nigeria’s debt to Gross Domestic Product (GDP) currently stands at 17.76% and compares favourably to all its peers. The debt to GDP ratio for Ghana is 67.5%, Egypt is 92.3%, South Africa (52%), Germany (68.3%) and United Kingdom (89.3%).

    “Nigeria’s debt to GDP ratio is still within a reasonable threshold. This Administration will continue to pursue a prudent debt strategy that is tied to gross capital formation. This will be attained by driving capital expenditure in our ailing infrastructure which will in turn, unlock productivity and create the much-needed jobs and growth,” the minister added.

     

  • Pay your taxes regularly to stop external borrowings, Adeosun tells Nigerians

    The Minister of Finance, Mrs. Kemi Adeosun has allayed the fears of Nigerians over the incessant borrowings of the incumbent administration.

    Adeosun noted that if Nigerians truly want the nation to stop borrowing, they must all be ready to pay their taxes regularly.

    The minister spoke on Sunday at a joint press conference with the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, at the conclusion of 2017 International Monetary Fund (IMF)/World Bank Group Annual Meetings in Washington D.C,

    She explained that with Nigeria’s source of revenue dropping by nearly 85 per cent, the country had no option but to borrow. The option before the country was to either cut public services massively, which should have led to massive job losses, or borrow in the short-term, until it begins to generate sufficient revenues, she said.

    “We felt that laying-off thousands of persons was not the best way to stimulate growth. Also, when we came into office, about 27 states could not pay salary. If we had allowed that situation to persist, we would have been in depression by now. So, we took the view as a government that the best thing to do was to stimulate growth and spend our way out of trouble, get the state governments to pay salaries, making sure that the federal government pays and invests in capital infrastructure,” Mrs Adeosun said.

    Emefiele said the apex bank was trying to encourage Nigerians in Diaspora to keep remitting funds home, and also invest in the country, as they do not have any other place they can call home but Nigeria. Nigerians in Diaspora remit $21 billion annually to the local economy.

    “We will put in place policies that will continue to encourage them. We are working on how we can actually link credit bureau arrangement to the foreign borrowing arrangement so that once there is a link between Nigeria and the foreign credit system, it will be easy for them to even borrow from Nigeria,” he promised.

    The CBN boss said the apex bank was also planning to ensure that Nigerians in Diaspora get some form of attachments to the credit system that they have abroad, either in the United States or United Kingdom. That, he said, will make it easy for them to access credit and begin to build their businesses, so that when they retire, they retire back into Nigeria, and they do not retire in Diaspora.

    Mrs Adeosun said that once growth was restored, the country would begin to systematically reduce its dependence on borrowing. “Now, we are talking about tax and what we are saying is that people should be aware of their responsibilities to their nation. The solution to borrowing in Nigeria is that we must pay taxes. If you pay the taxes properly, there is no need to borrow. Of course, there is the responsibility on the part of government to be more responsible and efficient. We are really focusing on this. We are trying to find ways to cut cost. Fundamentally, we must invest. We don’t have the power we need, we don’t have the roads yet and there is a lot of money required to fund these projects,” the minister said.

    Continuing, she said that reducing Nigeria’s tax to Gross Domestic Product (GDP) ration from six per cent to 10 per cent would significantly reduce the amount the country needs to borrow and that would have a wider effect on the economy and bring down interest rate.

    She added that such a move would also create some head room for the private sector to borrow, because they are being crowded out.

    On state borrowing, the minister said state governments’ get borrowing consent from the ministry, which performs Debt Sustainability Analysis and if the repayment is more than 40 per cent of their revenue, such request to borrow is turned down.

    “So, many people are talking of how many loans we are approving; they don’t talk about how many loans we are turning down. Many do not go through and we are constantly monitoring state governments to ensure that the debts that they take on are sustainable. The problem with some of the states that have debt problems are legacy loans that were there before they came in. But since we came in, we have been very strict, trying to make sure states do not borrow more than they can service,” Mrs Adeosun said.

    According to the minister, Nigeria’s debt to GDP ratio is one of the lowest. “We are at 19 per cent, but most advanced countries have over 100 per cent. I am not saying we need to move to 100 per cent, but I am saying we need to tolerate a little more debt in the short-term to deliver the rail, the roads and power so as to generate economic activities, jobs, revenue, which would be used to pay back the debts. But I assure you that this government is very prudent around debt. We don’t borrow recklessly and we have no intention of bequeathing unserviceable debts on Nigerians,” she assured.

    The minister said the Voluntary Asset and Income Declaration Scheme (VAIDS) had so far got positive response from Nigerians. “I had discussions with some high net-worth individuals asking me to speak to the state governors to allow them time to pay. They needed to pay to the state governments. I have discussed with the governors that anyone that comes to them voluntarily for tax payment, should be given time to pay. We don’t want a situation where people willing to pay their taxes are stifling economic activities. We have told the governors, if someone comes willingly, quickly allow them plan to pay,” she said.

    Mrs Adeosun said revenues were needed to provide public services and the burden of taxation must be borne by those whose income allows them to bear it.

    “So, those with higher income should bear greater part of the burden. The problem with Nigeria is that most of our taxpayers are at the lower level. The man on the streets passing traffic, his tax is deducted at source. Why will we not allow billionaires to proportionately pay their taxes? I think we need a mindset change on taxation in Nigeria. So far, we are encouraged by the response of those companies and individuals to this tax amnesty,” she added.

    In her view, the tax amnesty policy is on track. “We’re on track. We expect that at the end of the timeline, everybody will rush and we will raise significant money. We have every reason to believe that this tax mobilisation effort will work and hopefully bring long-term money,” she said.

    “We are trying to do is create enough headroom to invest in capital projects that the country desperately needs. I do not think there is any Nigerian that will say we do not need to invest in power, do the roads, and that will not want us to fix 17 million housing deficits and build rails. These projects will generate economic activities and jobs. We do not need to continue hobbling as a poor nation. We are middle income country now. Nigeria, Angola, and South Africa are middle income countries. We do it jointly and efficiently, but the key thing really is revenue,” the minister said.

     

  • [Photos] Adeosun represents Nigeria at 2017 Commonwealth Finance Ministers’ meeting

    Nigeria’s Minister of Finance, Mrs. Kemi Adeosun represented Nigeria at the Commonwealth Ministers of Finance during the 2017 Annual Meetings of the IMF-World Bank in Washington D.C. on Thursday, 12th October, 2017.

    Read Nigeria’s presentation at the meeting here

    See pictures below:

  • Senate summons Adeosun, Udoma over 2017 budget implementation

    …reiterates commitment to One Nigeria

    The Senate at the resumption of plenary on Tuesday summoned the Minister of Finance, Mrs. Kemi Adeosun and her counterpart at the Ministry of Budget and National Planning, Senator Udo Udoma to brief them on the implementation of the 2017 budget.

    Senate President, Abubakar Bukola Saraki disclosed this Tuesday in his welcome address to senators.

    The upper chamber resumed plenary Tuesday after about two months recess.

    Saraki said that the invitation of the two ministers became necessary in order for senators to be abreast with the level of implementation of the 2017 budget.

    The Senate President also asked senators to always stand for the unity and indivisibility of the country as well as condemn in the strongest term all forms of violence.

    Saraki said: “By the first week of October, we expect to begin the review of the implementation of the 2017 budget. To set the stage for this, we expect to invite the Ministers of Finance and Budget Planning to come and brief the Senate on implementation so far. Nigerians want to see a more significant improvement in the level of implementation of the budget this financial year. Let me therefore use this opportunity to call on all our standing committees to begin the process of putting together their oversight plan for a close and proper review of the performance of the 2017 Budget. In the same token, we must remind ourselves of the initiative we started and for which we have significant stride – that is, the Made in Nigeria initiative. It is time to enter the next stage of this initiative; the oversight of implementation to ensure that the policy yields expected gains.

    I will like therefore to see the committees demonstrate proactivity and readiness to engage government to ensure that at least a significant portion of our annual budget is fully dedicated to local procurement. All committees of the Senate must be involved in this and find better channels to engage our people and enable feedbacks. However, for these efforts to be successful it is required that we maintain peace and political stability. Hence the need for all of us to fight to keep Nigeria united and prosperous.

    “Distinguished colleagues, a house divided against itself will not stand. More than ever before, we need to stand for the unity and indivisibility of our country. We must condemn in the strongest possible terms all forms of violence as a form of engagement. The Constitution and laws have laid down tools and procedures for us to push through our interest as all democratic nations do. Our nation is blessed with exceptionally talented and beautiful people, we are collectively strong and indomitable and it is time for all of us to stand up for our nation. Our dream of a virile nation must keep us motivated and this dream is already at the horizon.”

    The Senate President noted that they have in the last two sessions of their term devoted enormous time, working hard on critical legislation, some with historical essence and others with relatively high-level implications for enhancing the welfare of Nigerians and putting food on their tables.

    He expressed happiness that some of the bills which has since become law have already started yielding expected gains.

    “This is especially so with the Secure Transactions in Movable Assets Act, with increased lending to private sector. We expect more to come. Our ultimate aim will be, inclusive growth, full employment for our people and frameworks that enable our young people to run viable startups,” he said.

    Saraki continued: “Distinguished colleagues, as a firm believer that economic security is first and most important security we can offer our people, it is the apparent inadequacy of this security that is at the heart of the general disaffection of our people towards government. We have done this with the belief that with less hunger on the street; with more of our people gainfully engaged; insecurity will be significantly reduced and our economy revamped. In this period, I expect us to conclude work on the National Transport Commission Bill, and the National Road Funds Bill, the Petroleum Industry Fiscal and Host Community Bill which are pending. It is my hope that we shall conclude work quickly on the Bank lending rate reduction initiative and the National Payment Systems Bill.

    “As we continue to take action to strengthen our economy, let me use this opportunity to congratulate all Nigerians for working together to get us out of recession. While we congratulate ourselves for exiting the recession, it is important that we don’t rest on our oars as this is not an end in itself. There is a lot of work ahead. Our aim is to see our economy create millions of new jobs and see growth rates of 7% or more. This is why the implementation of the 2017 budget is crucial.

    “Distinguished colleagues, as leaders, closest to our people, we must rededicate ourselves to the values we have institutionalized in this chamber. In this chamber, we are first and foremost, Nigerians. Yes, we are Igbos, Yorubas, Hausas, Fulanis. Yes, we are Muslims, Christians and traditional worshipers. But we must in all our conversations and decisions continue to be first and foremost Nigerians and as Nigerian citizens be our brothers’ keepers. Too many of our youths, too many of our families from the South to the North need a lifting. Our job is to help government give them a hand and ones again make them feel great again being Nigerians. This is our mission.

    “As we work to even make our Constitution better, it must be remembered that Constitution review is a continuous process which we must undertake with the vision of the future in our minds. The process we have already will continue in earnest with the meeting of the speakers of the various state Houses of Assembly and the National Assembly with a view to moving forward with the process. As promised, we will revisit and consider areas of the Constitution we believe will further strengthen our federation and enable our collective dream for a more prosperous Nigeria.

    “In the fight against corruption, aside the bills we have passed, it is important that we also sharpen up our oversight tools to ensure that government remains accountable always. However, I urge us all to more than ever, operate above board ourselves. In the last two years, we have successfully exposed numerous cases of corruption in our agencies and officers of government and as a result saved government enormous amount of public resources. This is what Nigerian people expect of us and we must continue to deliver on this. We must not make the mistake of resting on our oars. I say this to encourage you to keep up with the good works of exposing corruption as you have been doing so far. Yes, like Senator Isah Hamma Misau who had the courage to expose deep rooted institutional corruption, you will be attacked, blackmailed and insulted but, unlike any former Senate before this, we will not bow or be intimidated.

    “Distinguished colleagues, our focus on interventions critical to our national development will continue in this session. We will be interacting with stakeholders with the aim of repositioning our education sector and the health sector especially with the health insurance subsector as key primers of the economy. The major direction will be to expand access to basic education and health, incentivize investment in these critical sectors and find lasting solutions to issues of strikes and interruption in these sectors.

    “Dear colleagues, we are all witness to the revolutionary growth of innovative works and remarkable fits Nigerians both in the entertainment industry and software development are making across the globe. However, their ability to fully harness and reap the fruits of their effort continues to be hampered by our intellectual property regime which is yet to be reformed to meet with today’s digital realities and opportunities. We are determined to contribute our quota to make their lives easier and better by initiating and paying close attention to our intellectual property (IP) rights frameworks.

    “Distinguished colleagues, a lot has happened in our nation within the last few weeks especially with the floods. Let me take a moment to commiserate with all Nigerians who may have been affected by the recent floods. Our hearts and prayers are with you at this period.

    “On a salutary note, I am happy to report to you distinguished colleagues that while we were away, we also took note of some of the strides Nigerians have been making. We congratulate our women on the wining of the African Basket Ball Championship. We also congratulate our Super Eagles on their journey so far for the world cup qualifiers and we will continue to support and encourage them.

    “Before, I conclude this speech, let me on another winning note and on your behalf welcome Mr. President who has acknowledged his return to office through an executive communication earlier within the period of our vacation back to the saddle. We pray that the almighty Allah will continue to grant him full restoration.”

  • Adeosun confirms release of N350bn for capital projects

    The Minister of Finance, Mrs. Kemi Adeosun, on Monday confirmed the release of the sum of N350bn to Ministries, Departments and Agencies of the Federal Government for the implementation of capital projects contained in the 2017 budget.

    TheNewsGuru.com reports that Adeosun had on June 6, during the public presentation of the budget, stated that the Finance ministry was ready to release the sum of N350bn for capital projects once the budget was loaded.

    Adeosun confirmed to The Punch on Monday that the funds had been released to the various agencies of government.

    She said the release of the funds was done in tranches with the Ministry of Power, Works and Housing getting the highest amount of capital releases.

    This, according to her, is followed by the ministries of transport, defence, and agriculture and rural development.

    She said water resources, interior and health were among the ministries with huge sums of capital releases made to them by the Federal Government.

    “Yes, we did it (N350bn capital release) in tranches. Largest allocations were for the PWH (power, works and housing), transport, defence, agric, water resources, interior and health,” Adeosun said.

    The 2017 budget, with capital allocation of N2.36tn, is targeted at projects that are aligned with the core execution priorities of the Economic Recovery and Growth Plan

    The capital allocations have been crafted to stimulate activities in critical sectors of the economy that have quick transformative potential such as infrastructure, agriculture, manufacturing, solid minerals, services, and social development.

    For instance, under the 2017 budget, the Federal Government will be embarking on a rail modernisation programme to which N148bn has been allocated as counterpart funds for projects to be financed by China.

    They are the Lagos-Kano, Calabar-Lagos, Kano-Kaduna, Ajaokuta-Itakpe-Warri, Kaduna-Idu and other rail projects.

    In the area of electricity, the sum of N40bn for service-wide provision has been made to settle reconciled outstanding bills of government agencies as part of a strategy to revamp the ailing power sector.

    For the housing sector, the sum of N28bn was allocated in the budget for the Federal Government’s National Housing Programme nationwide.

    The Minister of Budget and National Planning, Udo Udoma, had during the budget presentation shortly after it was assented to by Osinbajo, had said the government was concerned about the number of abandoned projects scattered across the federation.

    He added that more targeted releases would be done to agencies of government for projects that were critical to the achievement of the ERGP.

    Udoma noted that in this year’s budget alone, funds had been allocated to over 65 roads and bridges and rehabilitation projects across the six geo-political zones of the country.

    Some of them are N10bn for the rehabilitation/reconstruction and expansion of the Lagos-Ibadan Expressway sections I and II in Lagos and Oyo states; N13.19bn for dualisation of the Kano-Maiduguri road, sections I-V; N10.63bn for the rehabilitation of Enugu-Port Harcourt dual carriageway, sections I–IV; and N7bn for the construction of the Second Niger Bridge, phases 2A and 2B, including access roads.

    There are also budgetary provisions of N7.12bn for the dualisation of the Abuja-Abaji-Lokoja road; N9.25bn for the dualisation of the Obajana junction to Benin road, phase two, sections I–IV; N7.5bn for the rehabilitation of the Onitsha-Enugu dual carriageway; N7bn for the construction of the Bodo-Bonny road, with a bridge across the Opobo Channel.

    Similarly, the sum of N3.3bn was budgeted for the rehabilitation of the Ilorin-Jebba-Mokwa-Bokani road; N3.5bn for the dualisation of the Odukpani-Itu-Ikot Ekpene Federal highway lot 1, Odukpani-Itu bridgehead; N1.5bn for the dualisation of the Kano-Katsina road phase one; and N2.24bn for the dualisation of the Suleja-Minna road, sections I and II, among others.

    Udoma had said, “We can’t be doing the same thing and expect different results. We have to do targeted releases by looking at the projects we can easily complete and which are important.

    “We are working on that to make sure that over time, we concentrate our resources so that we have maximum impact.”

  • Adeosun, Udoma, Emefiele meet Buhari, brief him on state of economy

    President Muhammadu Buhari on Monday received almost a two-hour briefing from the Minister of Finance, Mrs. Kemi Adeosun, her Budget and National Planning counterpart, Senator Udoma Udo Udoma and Governor of the Central Bank of Nigeria, CBN, Mr. Godwin Emefiele.

    The Ministers and CBN Governor updated the President on the improving economy, implementation of the 2017 Budget, preparation for the 2018 Budget, revenue strategies, combined cost reduction and debt management.

    Also discussed were monetary policy strategies and their economic impact, among others.

    President Buhari, while reminding the Ministers and CBN Governor that reviving the economy was one of the major planks on which the campaign of his party – the All Progressives Congress – was based, expressed gladness that things were looking up after two years of yeoman’s job.

    Urging them to keep at it, the President noted that the main aim of government was to bring succour to Nigerians across all walks of life.

    President Buhari also declared that he was pleased with the progress being made on different fronts.

     

    NAN

  • FG’s economic reforms will end recession soon – Adeosun

    The Minister of Finance, Mrs. Kemi Adeosun, has stated that the ongoing economic reforms by the federal government is aimed at tackling recession to its end.

    The minister who spoke on Thursday also said the reforms will enhance fiscal discipline, improve revenue generation, and promote allocation and efficient use of resources by the three tiers of government.

    Adeosun noted further that the reforms were geared towards wealth creation, employment generation, poverty reduction, development of the non-oil sector and value re-orientation.

    The minister spoke through the permanent secretary, Federal Ministry of Finance, Mahmoud Isa-Dutse, in a keynote address she sent to a retreat in Uyo organised by the ministry in collaboration with the Federation Account Allocation Committee, FAAC on the theme “Enhancing the Effectiveness of FAAC.”

    Adeosun underlined the need to refocus attention on quality investments in sectors including agriculture, manufacturing, mines and steel as well as the promotion of micro, small and medium enterprises, MSMEs as the critical contributors to the growth of the Gross Domestic Product, GDP.

    “The promotion of MSMES, initiation of N-Power and a number of other programmes were designed to empower the citizenry, encourage private enterprises and change the way government does business,” she said.

    “It is my firm belief that the pursuit of economic diversification through the promotion of private enterprises is one of the ways we can unlock the untapped socio-economic potentials for social progress, economic growth and national development,” Adeosun said.

    She said she was glad the present administration was intensifying efforts to diversify the economy, assuring that the multiplier effect would soon become obvious.

    The retreat, which was attended by all the commissioners of finance and accountants-general from the 36 states of the federation, is coming at a time the country is combating recession in the face of dwindling revenues.

    This retreat, she further explained, was predicated on the need to provide participants with the platform to contribute to the ongoing efforts to mitigate the shocks the economy was experiencing as a result of the revenue shortfalls.

    Adeosun urged participants to collectively come up with constructive ideas that would facilitate the implementation of the present government’s Economic Recovery and Growth Plan, ERGP, aimed at achieving sustained inclusive growth through structural transformation and diversification of the economy.

    The three tiers of government, she noted, should apply the best international best practice in public financial management by blocking all loopholes and strengthen financial management.

    Adeosun also said there was a need to reposition FAAC for enhanced performance through efficient management of accrued scarce resources for national development.

    The Akwa Ibom State governor, Udom Emmanuel, who was represented by his deputy, Moses Ekpo, reiterated the call for the review of the current revenue allocation formula by the National Assembly.

    “Given our common experience about development in our country, our revenue sharing formula should be weighted more towards the states and local government councils than the practice today,” Mr. Emmanuel said inter alia.

    The governor used the occasion to announce that Akwa Ibom has successfully launched itself as a major producer of tomatoes, onions and cassava in commercial quantity as a result of efforts by his administration to diversify the economic base of the state.

    “Our state has joined the league of others in the production of cocoa, rice and other cash crops in commercial quantities,” he added.

     

  • Whistleblower policy a successful initiative– Adeosun

    Whistleblower policy a successful initiative– Adeosun

    The Minister of Finance, Mrs Kemi Adeosun, says the whistleblower policy of the Federal Government is one of the current administration’s successful initiatives.

    She said this on Tuesday in Abuja at a seminar organised by the Bureau of Public Service Reforms (BPSR) on “The Whistleblower Policy and its Implication for Public Servants’’.

    The Whistleblower Policy was introduced in December 2016 by the Federal Government as part of the initiatives to wage war against corruption.

    According to Adeosun, as at July, over 5,000 reports have been made through various reporting channels, 365 actionable tips are received out of the 5000 reports.

    She said that over half of the reports came from public servants.

    The minister said the tips related to issues of contract inflation, ghost workers, illegal recruitment and misappropriation of funds.

    Others according to her, include illegal sale of government assets, diversion of revenues and violation of Treasury Single Account (TSA) regulations.

    The minister also said that the information received showed that certain types of tips were recurring.

    “Thirty-nine per cent (144) of the actionable tips relate to misappropriation and diversion of funds/revenue, 16 per cent (60) relate to ghost workers, illegal recruitment and embezzlement of funds meant for personnel emolument.

    “Fifteen per cent (56) relate to violation of TSA regulation, 13 per cent (49) relate to contract inflation/violation of the Procurement Act.

    “Others include failure to carry out projects for which funds have been released and nine per cent (34) relate to non-remittance of pension and National Health Insurance Scheme (NHIS) deductions.’’

    According to the minister, others include concealed bail-out funds and embezzlement of funds from donor agencies.’’

    She also said the whistleblower was entitled to between 2.5 per cent and five per cent of the amount recovered as an incentive.

    This, she said, only applied to whistleblowers that provided information that were original and directly led to the recovery of stolen or concealed funds or assets.

    “Of course, balance is necessary in every policy.

    “You will note that as keen as we are for officers to provide information, there are serious consequences for providing false or malicious information, including the possibility of prosecution.

    “We must ensure that people are not victims of personal grudges or private misunderstandings.

    She said in the first batch payment, N325 million had been paid as reward for whistleblowers, while payment for the next batch would soon be made.

    Adeosun said it was wrong to recruit staff without appropriate authorisation, adding that the Federal Government was working on measures to address the situation.

  • First class, business class air tickets will be taxed – Kemi Adeosun

    First class, business class air tickets will be taxed – Kemi Adeosun

    The Minister of Finance, Kemi Adeosun, on Thursday, said the Federal Government has signed a policy to tax first class and business class air tickets alongside other luxury goods.

    Adeosun made the remarks while answering live questions from Nigerians on Facebook.

    When asked her thoughts on taxing first class tickets and luxury coaches, the minister said, “I think yes”.

    “We signed something yesterday on luxury goods; champagne, brandy, whiskey, wine, jewelry, high-end jewelry,” Adeosun said.

    “We’ve signed something that will bill access charge on first class and business class tickets, we are just doing the final parts of the implementation and we also want to try and amend the tax payer book on high-end cars, luxury cars”

    Adeosun goes on to assure Nigerians that the taxes will be funneled into turning Nigeria into what it used to be and even better, adding that it will help in remodeling the country’s public social infrastructure.

    “If we move our tax-to-GDP ratio up, it means two things: One, we will be able to provide more services to our people. Many of the things we are not able to do are a function of the fact that we don’t have enough money.

    “We need to build more schools, we need to build more hospitals, we need to build more roads. This is not rocket science. Every country has challenges, there is nothing we are facing that other countries haven’t faced.

    “Every poor nation has very poor tax compliance rate and every rich nation has high compliance rate. So we want to be a prosperous nation. So what is in it for the citizens? If everybody pays, there will be far more money in the pool to be spent on the services that we need.

    “These things are what we call public goods, and they are funded from taxes. If you have been all around the country, you’ve seen the need, you’ve seen the number of people that are living in poverty, we can lift people from poverty if we have the right money.

    “We could do so much more in the economy if we had the money. If our public school system improves, many people who are currently paying school fees will move their children back into the public schools.

    “A lot of people that are very successful today were educated in public schools because the public schools were good; we can recreate that. Same with the health system. A lot of people die needlessly because we don’t have the right health facilities.”

    The minister says Nigerians living and working abroad, and paying taxes in those countries do not have to pay taxes in Nigeria.

  • Nigeria is out of recession – Adeosun

    Nigeria is out of recession – Adeosun

    The Minister of Finance, Mrs. Kemi Adeosun, has said the country is already out of recession “to an extent.”

    “We are out, we’re out to an extent and we hope that the figures will reflect the fact that we’re out. We shouldn’t focus too much on when, what we should focus on is growth. Getting out of recession is not enough, we have to grow and grow aggressively.

    “The ERGP has plans that will have us seeing seven or eight percent growth and that is the kind of growth we need for our population growth and I’d like to focus less on when we’ll get out of recession,” Adeosun said in an interview on AIT.

    The Minister also added that President Muhammadu Buhari’s administration recovers loot daily.

    “It’s a process that we are reconciling and I’m sure that very soon, we will put out some data; I think Lai Mohammed put out some figures and since then we have improved our reconciliation methods and we have an asset tracking team.

    “I’m confident that very soon we’ll put out updated figures of course recovery changes day to day because on a daily basis, money is being recovered from various places but soon we’ll put out comprehensive figures on that.

    “The recovered funds are still with me, part of it is to be used for budget. The acting president has insisted that we identify projects in the budgets that will have national impact so we are going through the budget to identify and release funds for that especially in the area of health. Stolen funds will be used for capital projects, not paying of salaries,” Adeosun remarked.