Monday, 14 December 2015

KEMI ADEOSUN PROPHESIES DOOM FOR NIGERIA IN 2016

Mrs. Kemi Adeosun, Minister of Finance
The year 2016 shall be tough for Nigeria owing to the fact that the Federal Government will make extremely tough decisions. This was disclosed by a prophet of doom who doubles as the Minister of Finance, Mrs. Kemi Adeosun.


She gave this forecast while speaking at the opening of the 7th Annual Bankers Committee retreat in Lagos, a few days ago. She stressed that Nigeria was faced with some fairly significant micro-economic challenges that required some fiscal house-keeping.

Mrs. Adeosun noted that the country, fortunately, has some head-room, as the debt to GDP ratio is at 12 percent and that gives some space to run a deficit budget with the specific objective of stimulating the economy.

She said: “To do so, we need to do some fiscal housekeeping. We have to control the significant challenge we have around recurrent. If you look at recurrent at a percentage of our total budget with the just approved supplementary budget, it is about 90 percent. If we continue in that trajectory, every penny we borrow will go into recurrent.”

Even though, the minister was enthusiastic that Nigeria could overcome the challenges, she warned that she was not attempting to white-wash everything or paint a rosy picture.