As the Vice President, Professor Yemi Osinbajo, leads Nigeria’s delegation to the United States of America for another talk show on economic rejuvenation, World Bank Group President, David Malpass, has pointed out that Nigeria’s economic challenges are more of internal than external.

Malpass noted that staggered exchange rates and over bloated fuel subsidy are key areas to be addressed by the All Progressives Congress (APC)-led government.

Professor Yemi Osinbajo met the World Bank Group President as part of efforts to seek the multilateral institution’s support to end petrol subsidy which has become a drain to Nigeria.

The meeting, which took place in Washington, was disclosed in a statement posted on the World Bank’s website.

During the meeting, Malpass emphasised the important need for a decisive move toward exchange rate unification and stabilisation by Nigeria.

“President Malpass emphasised to Vice President Osinbajo that a unified exchange rate will significantly improve the business enabling environment in Nigeria, attract foreign direct investment, and reduce inflation.

“President Malpass and Vice President Osinbajo also discussed the importance of increasing domestic revenues through broadening Nigeria’s tax base and increasing the efficiency of tax administration,” an official statement stated.

The World Bank chief also pointed out that Nigeria, for the first time since its return to democracy and as the only major oil exporter, hasn’t been able to benefit from the windfall opportunity created by higher global oil prices presently, due to its rising petrol subsidy burden.

Meanwhile, the Director-General of the Debt Management Office (DMO), Mrs. Patience Oniha, has confirmed that Nigeria’s total debt profile as at March, 2022, stood at N41.60 trillion.

Oniha said this during her appearance at the ongoing engagement on the 2023 – 2025 Medium Term Expenditure Framework (MTEF) and Fiscal Policy Paper held by the House of Representatives Committee on Finance yesterday. She attributed Nigeria’s high debt profile to shortfall in revenues and the deficit in the annual budget as approved by the National Assembly. These, according to her, increased the debt stock of the country.

She revealed that, “as at December 2020, the debt stock of Nigeria and that includes the federal, state governments and the Federal Capital Territory was N32.92 trillion. By December 2021, it was N39.556 trillion. As at March of this year, we published quarterly, it was N41.6 trillion. On the average, the federal government is owing about 85 percent of the total debt.

“We have been running deficit budget for many years and each time you approve a budget with a deficit, by the time we raise money, because when you approve it is giving us a mandate, authority to borrow, it will reflect in the debt stock, so the debt stock will increase. Also note that states are also borrowing. So we add their own. They also have laws governing their borrowings and as debt stock increases so does debt service.

“Until the issues of personnel, overhead and capital expenditure are properly addressed in the budget, borrowing would not stop.”

Speaking further, she said, “a World Bank report showed that in terms of debt-to-GDP ratio, Nigeria is low but for debt service-to-revenue ratio, we are very high. So, if you look at tax-to-GDP ratio of these other countries, they are in multiples of Nigeria.”

According to her, the World Bank survey report of about 197 countries revealed that Nigeria was 195, meaning that the country was only able to beat two countries and that was Yemen and Afghanistan, “and I don’t think we want to be at those places.”

“When the MTEF for 2021 to 2023 was being prepared, it is to say, let’s begin to look at revenues because as debt is growing, debt service is increasing. So, the language we used is for debt to be sustainable in the medium term.

“Sustainable means you can service your debt without difficulty, without it consuming all your revenues because you have very little for other projects. You must look at revenues very closely and I think the discussions you have had with the Customs is one part of it.

“There are many other revenue generating agencies. So, we must increasingly begin to look out our revenue for funding our activities as opposed to deficit.

“We talked about N11 trillion deficit and borrowing for 2023, how much is the revenue there? When we looked at the first tranche that was N10 trillion for full year of subsidy and N9 trillion for subsidy next year and the size of the borrowing was 62 per cent of the budget.

“The responsibilities, I think, are on both sides. Query the various expenditure lines and see what it is we can handle. So, if the deficit is lower, the borrowing will be lower and that’s how to grow on a slower pace,” she added.

oshozondii:
World Bank to Osinbajo: Go home, address your staggered exchange rates, over-bloated fuel subsidy


https://dailytimesng.com/world-bank-to-osinbajo-go-home-address-your-staggered-exchange-rates-over-bloated-fuel-subsidy/
Lalasticlala
Mynd44

NJV:
And what will they tell Bubu?

MyVILLAGEpeople:


Does that one even knows what Is happening at the global stage ??

That man shouldn’t have been President in the first place. It was one big colossal mistake.

Moh247:



World Bank has an agenda and it's not about Nigerians it's western agenda

Before we can remove fuel subsidy, Dangote refinery must be working and Bua refinery must be almost completed, all state must be linked by trains and super highways and state must have BRT and metro systems and subway

How many Nigerians can afford Petrol at the real price of ₦700 per liter ?

If we float Naira can we afford Naira to dollar at over ₦1500


.

MyVILLAGEpeople:


Does that one even knows what Is happening at the global stage ??

That man shouldn’t have been President in the first place. It was one big colossal mistake.

Qtrpst4:
Shame on you

Buhari used your tinubu economic policy and that's why the exchange rate is high and that's why fuel subsidy is bloated

Moh247:


Thanks for your contribution, you also spoke according to your IQ and level of understanding of the subject

Qtrpst4:
Meaning Adeosun IQ is low?

Have you ever seen anyone with high IQ supporting tinubu?

Even kayemo said it, you must be stupid to support druggie

Qtrpst4:
No, it wasn't a mistake, the first time I might agree, but the second time, No it's not.

You forgot how tinubu brought two bullion vans to buy votes for this mennaquine

OneCandleAway:


Tinubu wanted to complain the first time about how Buhari was failing. I think 2016 or so. I read it somewhere. Then they probably shut him up with the promise to support him after buharis tenure

Moh247:


Ok have heard

Thanks and good bye

Qtrpst4:
No, come I still have more for you, keno also said something do you want to know?

Moh247:


It's like you have a thing for Kemi ... Weird

Please don't post another Kemi again

Qtrpst4:
I don't care about kemi as I don't care about you. She is Yoruba and better than your tinubu

Moh247:


Ok so what do you care about so you can gedefvck outta here as I want to debate fiscal and monetary policy only

Moh247:



World Bank has an agenda and it's not about Nigerians it's western agenda

Before we can remove fuel subsidy, Dangote refinery must be working and Bua refinery must be almost completed, all state must be linked by trains and super highways and state must have BRT and metro systems and subway

How many Nigerians can afford Petrol at the real price of ₦700 per liter ?

If we float Naira can we afford Naira to dollar at over ₦1500

If APC tries such nonsense I will personally vote against them and support anyone with alternative policy..... We are not yet ready for this wonderful policies being suggested


.

Tianamen1:
Moh247,
Between 2010 and 2014, the price of a barrel of crude oil was over $100 per barrel as it has been this year, yet the price of petrol without subsidies was about N140 per liter.

Why should the price of petrol be above N300 now?

Answer: Inflation.
If inflation is the issue, then why isn’t the government fighting inflation as opposed to manipulating exchange rates and borrowing beyond its limits.

The solution to Nigeria’s economic problem is INCREASED TAXATION. this should be common knowledge to all Nigerians.

Nigeria is peculiar in that it is amongst the most unequal countries on earth, so taxing the common man will be as fruitful as trying to squeeze water out of a dry clothe.

Taxes need to be focused on the rich as the rich have a higher disposable income and spend a larger proportion of their wealth on imported consumables.

Any reduction is spending will lead to a contraction in GDP, So tax revenues need to be spend on investments (Government’s perspective) such as quality public basic education which will provide the government with more productive TAXABLE citizens in the near future.

This is all it takes. If the government were to raise taxes on the rich, the naira will start to stabilize as fewer people will be able to buy imported things. This will also push down the price to import petrol and thus enabling the government to remove subsidies. The key is Taxation.