FG to pump in N350b to check economic recession

The Federal Government is set to pump in not less than N350b in the coming months to stabilize the wobbling economy.

This was disclosed by Minister of Finance, Kemi Adeosun at the end of a two day retreat for the thirty six state governors and members of the National Economic Council.

She said that the money would help to offset debts owed local contractors most of which have laid off their workers.

She added that state governors were advised to reduce the number of political appointees and aides as a means of reducing cost of governance.

“We deliberated extensively on the drop in revenue, particularly as to how it affects the state governments and their ability to pay salaries and obligations. The general resolve of the house and consensus was that there was need to bring in more cost efficiency in their operations.

“In particular, to look at the setting up of the efficiency unit within the state governments, to rationalise expenditure and, of course, to increase IGR. To that end, there was a need to generate data because data is the basis of any revenue collecting efforts.

“The federal and state inland revenue services collaborate to do joint audits to invest in revenue, relevant technology and efforts to improve 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.

“There is a focus at state level on property and consumption taxes to help in improving revenue in a fair manner. Tax payer education must be intensified and to expand the tax base and ensure that there is a buy-in in the revenue collection agencies from the populace.

“State governors were encouraged, where possible, to rationalize numbers of commissioners and general political appointees and, in addition, cost control measures to be identified and implemented on an on-going basis and there was a sharing of best practices from a number of states that could be applied elsewhere.

“From the Federal Ministry of Finance in anticipation of the approval of the budget, we have virtually lined up about N350 billion which we would be pumping into the Nigerian economy in the forth coming months. We explained our rationale and the processes that we have put in place, safe guards to ensure that this money actually achieves the desired objective which is to stimulate the economy,” she said.