The Federal government
will inject N350 billion to stimulate the economy in the next few months as
soon as the 2016 appropriation bill is signed into law.
Finance Minister Kemi Adeosun
made the disclosure on Tuesday in Abuja at a media briefing at the end of the
two-day National Economic Council retreat.
Mrs. Adeosun, Finance Minister |
``In anticipation of the
approval of the budget, we have lined up N350 billion which we would be pumping
into the Nigerian economy in the forth-coming months,’’ she said.
She said that the
ministry was already discussing with some of the contractors who would be paid
the money.
``We are specifically
looking at contractors who have laid-off staff and how many Nigerians are they
going to put back to work as a result of this money that we are planning to
release.
``We believe that this
will stimulate significant economic activities,’’ she added.
The minister said that
the retreat discussed funding of the Universal Basic Education Commission
(UBEC) and the need to get legislative approval to reduce counterpart funding
paid by state governments.
She explained that
counterpart funding was exacebating the indebtedness of state governments.
She said that the federal
government planned to reduce that requirement temporarily from 50 per cent to
10 per cent.
Accordingly Adeosun the
gesture will enable the states access an estimated N58 billion that they could
not access before due to the burden counterpart funding
The minister said that
participants at the retreat were hopeful that the money would allow state
governments rehabilitate 1,000 classrooms in the 36 states thereby creating
jobs and boosting economic activities.
Adeosun said that the
retreat deliberated extensively on drop in revenue particularly as it affected
state governments and their ability to pay salaries.
She said that the retreat
also looked at the possibility of state governments setting up efficiency unit
to rationalise expenditure and increase internally generated revenue.
The minister said that
Federal and state Inland Revenue Services would collaborate to carry out joint
audit and boost revenue collection.
``There is a need to
develop incentives for both federal and state revenue generating agencies to
ensure that there is an alignment of interest.’’
She said that state
governors were encouraged to rationalize the numbers of their commissioners and
political appointees to reduce cost of governance. (NAN)
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