THE Minister of Finance, Mrs. Kemi Adeosun, on Tuesday said the Federal Government would tailor its spending to critical sectors of the economy that would create the needed impact on the well-being of the people.
The minister stated this during a panel discussion on the economy at the Ogun State Investment Forum in Abeokuta.
She said that the spending, which would be done in an effective manner, would be used to reset the economy by repositioning it on the path of growth.
Adeosun claimed that government’s spending in previous years had been ineffective and not directed at the right areas, noting that the current administration was determined to ensure that going forward, all government spending would achieve maximum impact.
While highlighting the fact that Nigeria was not an oil economy, the minister said by fully harnessing the potential of the non-oil sector, the country could create a resilient revenue base.
She said, “Although oil accounts for 70 per cent of revenue, it constitutes only 13 per cent of our Gross Domestic Product.
“By fully harnessing the potential of our non-oil sector, we can create a more diversified and resilient revenue base, which will provide the necessary fiscal buffers to insulate the economy against the impact of external shocks in the future.”
Adeosun said there was a need for the Federal Government to play its role so that the states could focus on their core functions.
According to her, the Federal Government will ensure that it removes rent-seeking opportunities in order to unleash entrepreneurial activities and create jobs for the people.
“We must engage in economic patriotism to support local job growth,” she added.
The minister explained that the Federal Government was fully aware of the current economic challenges facing individuals and businesses, and was working very hard to address them.