Is President Olusegun Obasanjo's proposed National Dialogue the way forward for Nigeria?
External Reserves Now $16bn, Says Okonjo-Iweala
��Foreign investors commit N580bn into economy' From Kunle Aderinokun in Abuja, 12.17.2004
Nigeria's foreign reserve has hit a record high of $16.1 billion, Finance Minister Dr. (Mrs.) Ngozi Okonjo-Iweala has said. She also disclosed that foreign investments worth more than N577.89 billion about $4.35 has so far been attracted into the economy. Speaking in Abuja, during consultation with members of the diplomatic corps and donor community on Nigeria's economic reform programme, Okonjo-Iweala said the current reserves have the capacity to finance 11months of import. However, she said the level of foreign investment achieved was a manifestation of the positive impact of the reforms initiated by President Olusegun Obasanjo otherwise known as the National Economic Empo-werment and Development Strategy (NEEDS). According to her, $86 million was invested in Indepen-dent Power Project in Abia State by Nigerians in Diaspora; $20 million of investment in tantalite also by Nigerians in Diaspora; $500,000 anti-retroviral factory; $1 billion investment by South African firms between 2004 and 2005 and an investment of 30 million Swiss francs by Nestle. She added that other investments, which came in as a result of the implementation of NEEDS included $32 million investment in real estate; $12 million leather factory in Kano; $40 million Independent Power Project in Kano; $9.5 million pharmaceutical factory for sickle cell drugs; $2 billion commitment by World Bank over three years and $100 million investment in MTN Nigeria by the International Finance Corpora-tion. Similarly, the finance minister pointed out that Nigeria Breweries invested $80 million in sorghum malting plant, $125 million in can-making plant, $33 million investment in developing distributorships and $19 million in transportation. However, the minister revealed that the Federal Government has been able to save about N691 billion or $5.2 billion which accrued as excess crude proceeds for the year 2004. This, she noted, translated to an increase of 13.5 per cent over the projection of N609 billion for fiscal year-ended December 2004. Okonjo-Iweala also said the Federal Government saved about N132 billion (an equivalent of $1 billion) from the phased-out of subsidies in petroleum sector between 1999 and 2004, which has been paid back into the federation account. She restated that the Federal Government will provide a kerosene subsidy amounting to N2 billion per month (about $150 million) to cushion the impact of the recent increase in petroleum products in the country She enthused that inflation rate, was on the way down from a moving average of 19.1 per cent for 2004, to year on year inflation rate in September at 9.1 per cent. According to her, "the inflation rate is going down from a moving average of 19.1 per cent for 2004, to a year to year inflation for June to June 14.1 per cent, July to July 10.9 per cent, August to August 13 per cent and September to September 9.1 per cent." She added that the exchange rate of the Naira to the United States Dollar has remained largely stable, at N132 to a dollar as traded at the Dutch Auction System (DAS) of the foreign exchange market. Noting that at the fiscal deficit was 1.5 per cent of the Gross Domestic Product (GDP) at half year deficit profile, she pledged that her team would ensure that the annual deficit level will not be allowed to go beyond 2 per cent. The Federal Government had projected in this year's budget, a deficit of 2.5 per cent of GDP. On external debt, she pointed out that the country's external debt still stood at $34 billion as at June 2004. She assured that the Federal Government would maintain her debt service of $1 billion to the Paris Club in the year 2005. She lamented that the $34 billion external debt burden was clearly unsustainable, arguing that contrary to the widely but erroneously held opinion that Nigeria was rich, she was indeed poor. According to her, when the total annual oil revenue was divided by the estimated over 130 million Nigerians, the money was too little to be regarded as a significant means through which the nation could be adjudged rich, and therefore unqualified to benefit from the World Bank's Highly Indebted Poor Countries (HIPC) initiative. She therefore pleaded with the diplomats to assist Nigeria by portraying the true picture of the nation to their home governments and thereby simplify the debt services negotiations and or other forms of debt relief being sort by the federal government. She urged members of the diplomatic corps to avail their respective countries' business communities with the information about the abundant investment opportunities in the country coupled with various incentives awaiting foreign investors. Expressing delight that there has been some positive responses to the invitation for foreign investors to move into the Nigerian economy, she however said there was still much more room for others to invest in Nigeria. The finance minister restated the determination of the Federal Government to audit the nation's crude oil accounts between June 1999 to end of 2003, as part of its efforts at entrenching transparency in governance. She recalled that the federal government had advertised for international accounting firms interested in the job to apply and that the report of the auditors would be ready, latest June 2005. According to her, "we have made it abundantly clear that government business must now be conducted on the table for all to see. In doing this we have not ensure we cut wastage but prudently manage revenue. We have also advertised for international audit firms to come and audit our oil revenue from June 1999 to June 2003." She explained the audit of the NNPC which was in line the Extractive Industry Transparency Initiative (EITI) will build confidence in the nation's economy and enhance the attraction of foreign investors, get better assistance from donor agencies, amongst others. She added that the publication of the monthly Federation accounts allocation to the three tiers of government has greatly enhanced transparent utilization of the funds noting that the present administration was working towards enthroning the values of openness in public funds utilization, with a firm commitment to giving Nigerians value for their money. While noting that efforts are ongoing to better equip and train the police force and provide incentive, which strength stood at 310,000 as at September 2004 as against 240,000 in February, she added that the training in community policing is also ongoing."
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