The Federal Government will inject a total of N350 billion into the nation’s economy within the next few months to stimulate the economy.
This revelation was made by the Minister of Finance, Kemi Adeosun, at a press conference held at the conclusion of a two-day retreat for governors of the 36 states of the federation and members of the National Economic Council (NEC) which held at the Presidential Villa in Abuja.
Addressing journalists at the press conference, she said, “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.
She further stated:
“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 rational 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.”