Connect with us

News

We Want Infrastructural Development, Not iPhones and Expensive Suits – Adeosun Tells Investors

Published

 on

PIC.1. FROM LEFT: MINISTER OF FINANCE, MRS KEMI ADEOSUN; A PROFESSOR OF ECONOMICS AND PUBLIC POLICY, OXFORD UNIVERSITY, U.K., PROF. PAUL COLLIER; AND CHAIR, WORLD ECONOMIC FORUM'S GLOBAL FINANCIAL SYSTEM INITIATIVE, ANDERS BORG, DURING A PANEL DISCUSSION ORGANISED BY THE INTERNATIONAL MONETARY FUND (IMF), AT THE SIDELINE OF THE WORLD BANK/IMF GENERAL MEETINGS WITH THE THEME: “TOWARDS BETTER INFRASTRUCTURE IN DEVELOPING COUNTRIES, IN WASHINGTON DC ON WEDNESDAY (5/10/16). 7396/6/10/2016/RACHAEL ISHAYA/BJO/NAN

PIC.1. FROM LEFT: MINISTER OF FINANCE, MRS KEMI ADEOSUN; A PROFESSOR OF ECONOMICS AND PUBLIC POLICY, OXFORD UNIVERSITY, U.K., PROF. PAUL COLLIER; AND CHAIR, WORLD ECONOMIC FORUM’S GLOBAL FINANCIAL SYSTEM INITIATIVE, ANDERS BORG, DURING A PANEL DISCUSSION ORGANISED BY THE INTERNATIONAL MONETARY FUND (IMF), AT THE SIDELINE OF THE WORLD BANK/IMF GENERAL MEETINGS WITH THE THEME: “TOWARDS BETTER INFRASTRUCTURE IN DEVELOPING COUNTRIES, IN WASHINGTON DC ON WEDNESDAY (5/10/16).
7396/6/10/2016/RACHAEL ISHAYA/BJO/NAN

The Minister of Finance, Kemi Adeosun, speaking on Wednesday night at a session during the International Monetary Fund (IMF)/World Bank annual meetings in Washington D.C., told multilateral donor institutions and investors that Nigeria is hungry for infrastructure that can trigger growth, not iPhones and pricey suits that will drive consumption.

According to THISDAY, Adeosun made the remarks after the IMF announced that it would offer zero interest rate on its concessional lending facility from 2016 to 2018 to Nigeria and other low-income economies that are in dire need of financial support to boost their economies.

“It seems very simple, in terms of what needs to be done. We are quite excited about negative interest rates. We like that you’re not earning any money.

We are happy to take your money and give you very small positive interest rate. We think that the time has come, everyone is thinking out of the West, but there is nothing left in the West, everybody has to now come to Africa.

But we don’t want investors to come to Africa to sell us iPhones and many expensive suits. We want to become productive, so we want this investment to come into infrastructure that will enable us to compete and really enable Africans to stay in Africa,” Adeosun was quoted as saying.

According to the minister, Nigeria has begun a journey that will take its economy from being oil dependent to a more productive one

She also told the audience that the present administration has reduced recurrent expenditure from 90% of the budget to 70% of the budget, adding that 30% of the budget now accounts for capital expenditure as against the 10% it was before.

“From the numbers that we have done, the infrastructure gap that we face, even if we devote our budget for the next three years, it is not enough, so we’ve got to look for creative ways to mobilise additional capital.

We started of course with spending our own money (pension funds) because we think, of course, that the first thing we have to do is to re-establish some benchmarks, some ability to deliver on roads, on rails, on basic infrastructure.

We think the narrative around who pays for infrastructure is a very important one in Africa. I say that because at the moment, if you don’t have infrastructure, you are going to pay anyway. If you spend six hours on a journey that should take you an hour, you’ve paid.

So how do we convert that payment, which is currently informal and very painful, into a formal payment and therefore turn to a revenue stream that could attract investors, That is the challenge that we are working on now.

As I have said, we are leading with our own money. We are looking at a regulatory framework that would enable investors to come in. We know it’s a new market and we are going to de-risk it.

So what we are starting with are just infrastructure bonds that we guarantee, and then hopefully, when investors get an appetite for what the Nigerian infrastructure framework can provide them in terms of returns, we believe, we’d be able to remove some of the safeguards needed at the moment.

We are hungry for infrastructure. We’ve got 170 million people who don’t have power in sufficient quantities, we don’t have a rail system, we don’t have a road structure, we believe that if we solve these infrastructure challenges, the entire productivity chain — agriculture, solid minerals, manufacturing, our unemployment problems — could all be solved.

Our population is young; we have to provide a standard of living that keeps young vibrant Africans in Africa, because we think that is very important for eliminating poverty,” Adeosun added.

27 Comments

  1. madman

    October 7, 2016 at 4:28 pm

    Instead you to figure out a way out of the recession… you are attending conferences up and down. RUBBISH.

    • tunmi

      October 7, 2016 at 4:42 pm

      Yes to attract investors and network. Bruh, this is part of her job

    • good girl

      October 8, 2016 at 7:40 pm

      i can bet as many people do that mad man just read the headlines didn’t understand or didn’t read the article and just rushed to comment section..lol

    • Common sense

      October 7, 2016 at 4:42 pm

      Conferences are for networking, developing ideas and finding investor. How do you suggest she pulls the country out of recession, madman?

    • Niola

      October 7, 2016 at 5:37 pm

      ermmmm Mr madman it is one of the many ways to get us out of recession. plus aren’t you tired of these western imperialism where they pretend they want to trade with you but in all honesty want to use your country as a dumping ground ..We don’t need your products we want to develops ours thank you. grow naira grow Nigeria

    • Femi

      October 8, 2016 at 9:46 am

      Stop being a madman. Get some education. If u were not moved by her speech, then ur name is truly who u r.

    • Aa

      October 8, 2016 at 5:06 pm

      “Madman”- your user name is appropriate.

  2. Marlvina

    October 7, 2016 at 4:42 pm

    Hey madam! If I can afford to buy an iPhone and expensive wears I don’t see how that’s anyone’s business. If the economy was in the right state would you bother bout who is investing what? Or who’s buying what? Pls face front and do your job. No pour sand for my garri o! Besides, you have got yourself an iPhone and expensive suits. So kini big deal?

    • the only permanent thing is change

      October 7, 2016 at 4:56 pm

      What phone is Adeosun using?

    • Seriously

      October 8, 2016 at 9:18 am

      Who gives a s#it what you can afford, nigerians stay bragging and miss the bigger picture. That’s the reason the country is in a big mess because Nigerians lose focus of permanent, long tern solutions. .She’s simply saying majority of the companies taking interest in investing in Nigeria right now are phone, clothing, alcohol, entertainment etc but Nigeria needs more infrastural investment to take bigger interest in order to grow economically. America technology, other things grew more after they had a stronger g infrastructure. So yes, infrastructure investment is more important than iphone or buying expensive suits that only 2 percent can afford.

    • Iris

      October 8, 2016 at 1:56 pm

      I highly doubt that she’s saying there should be no iphones in Nigeria. You have missed the point very very completely. If you haven’t noticed, the kind of foreign investments in Nigeria lately have been things like electronics and alcohol – easy to consume quickly and not sustainable to have. We applaud you for being able to afford an iPhone but your iPhone is not helping the masses.

  3. Alexander Ogunshakin

    October 7, 2016 at 5:01 pm

    The lady has spoken. I certainly hope they will listen to her Clarion call.

  4. mim

    October 7, 2016 at 5:10 pm

    Gosh…..too many airheads on BN these days….or is it frustration from the recession…..

    • shield

      October 7, 2016 at 6:40 pm

      Azzin ehn? Just too much!

  5. Keeks

    October 7, 2016 at 5:17 pm

    But yet you want to sell the only few remaining assests the country has. RUBBISH!!!

  6. Las

    October 7, 2016 at 5:26 pm

    Good luck explaining that to the pepper seller who just bought her iPhone7.

  7. keke driver

    October 7, 2016 at 5:51 pm

    Madam, we want you to STFU do your dam* J O B and get us out of this mess you and your boss put us into.

  8. concerned9a

    October 7, 2016 at 6:04 pm

    Or JD..Baileys..Cognac..

  9. madman

    October 7, 2016 at 6:13 pm

    I can tell many of these commentators have NEVER met a Nigerian official at a conference. Don’t spew crap about networking. Nigerian GOVERNMENT Officals DO NOT know HOW to network.

  10. Ajala & Foodie

    October 7, 2016 at 6:13 pm

    I understand we need foreign investors in Nigeria but until we start leading by action (not by mouth only) will this foreign investors begin to believing us or taking us seriously
    if you are making a “clarion call” to others (as someone put it) and you have not heeded it yourself. Do you really expect people to run to your aid? These people see you all lining your bank accounts with millions of $$$ and that does not include the amount you pump into their economy with the shopping sprees and you want them to believe you are starting with your own money???. You can not be asking people to take panadol for your headache when you have refused taking one yourself, yet, insisting that is the only way of relieving your pain.
    Until our words and actions all align, investors will not invest.

    We need to provide concrete evidence that we are indeed doing our best to provide this infrastructures for ourselves first. Lip service ain’t going to get you or anyone else anywhere on this one. Once UAE started showing concrete evidence of investing in its own economy, they did not have to go begging for investors, the investors came in droves. Once we start truly using our money to provide infrastructure and “bettering” our enconomy no one will have to give a speech or beg anyone. Until then keeping being a consumer economy, actions, they say, speak louder than words. This investors are investors for a reason, they are smart not gullible or driven by mere lip service.

  11. Weezy

    October 7, 2016 at 9:31 pm

    Does our Minister of Finance understand the different between business and government? iPhones are not sent by the World Bank or the UK or US government. Nigerian citizens purchase iPhones because they like them. It has nothing to do with economic or financial policy. Wth?

    • Ready

      October 8, 2016 at 4:55 am

      She wasn’t saying phones are sent by any multilateral agency, and she wasn’t speaking about limiting the consumption of luxury items. She was referring to attracting a higher amount of productive investment rather than the influx of investors who come to us to take our money.

  12. Mrs chidukane

    October 7, 2016 at 9:46 pm

    This recession has really eroded people’s thought patterns. I don’t see anything wrong with what she said or her presence at the conference . You guys should chill abeg.

    • Weezy

      October 8, 2016 at 6:20 pm

      Well, as I’m doing very well financially, I have no idea what you’re on about the recession affecting my mind .

      Yes she should be at the annual meetings – its her job. but her statements make her look unintelligent and she is embarrassing out country before the world. The minister implies that there are decision makers somewhere in the West who get together and say, let us send them iPhones, and all she needs to do is to tell those people “stop sending us iPhones . Invest instead!” And that addresses the issue. She sounds like a 22 year old political science graduate. To be fair, Ngozi wasn’t particularly impressive as a speaker – when I heard her speak in was never blown away – but Ngozi had a competence, reputation and gravitas that would allow you to forgive the occasional blunder.

      Companies and governments are not going to invest in Nigeria out of charity or because the government cajoled them into doing so. They will do it because they see an ability to make profit or have impact with medium to low risk. Nigeria has become an even bigger high-risk location thanks to the economic and financial policies of Mrs Adeosun, our government and the CBN. Have you been even paying attention to the various policies and circulars that are put out only to be withdrawn or reversed months later because the government did not use brains and think things through in the beginning?

  13. Tosin

    October 8, 2016 at 8:15 am

    Somebody should offer this chic another job nah, please.
    Even if she doesn’t want to be an accountant, she can teach business studies…she can start her own business…she can work hard on her lyrics and be a phonehtic rapper…
    WHY WHY is she always off-point nitori Olorun?

  14. Fabulous B

    October 8, 2016 at 3:04 pm

    She has spoken well. Hoping for the best from this and other meaningful ways to get Nigeria to the pedestal

  15. Ace

    October 9, 2016 at 7:39 am

    People need to start reading like children so you don’t embarrass yourself on the internet.
    Stop jumping to conclusions and be educated and use google.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Star Features

css.php