NIGERIA’S Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala has defended the controversial ‘envelope system’ budgeting process adopted by the country’s Ministry of Finance.

Okonjo-Iweala, who appeared before the Senate Joint Committee on National Planning, Economic Affairs and Poverty Alleviation and Finance on Wednesday, maintained that envelope system was not arbitrary as perceived but was designed to give Ministries, Departments and Agencies (MDA’s opportunity to set out priorities in their sectors in line with budgetary provisions.

A two-day public hearing on National Planning and Budgeting Process resumed at the Senate on Monday as a follow up to the motion on the subject matter sponsored by Senator Olubunmi Adetumbi representing Ekiti North Senatorial District.

Okonjo-Iweala also faulted agitations in some quarters that budget functions be removed from the Finance Ministry and domiciled with the National Planning Commission (NPC).

Citing instances with Malaysia, the Minister noted that the practice was international best practice. She however called for a synergy between the National Planning Commission (NPC) and the Budget Office in the preparation of annual national budgets.

On economic downturn, Okonjo-Iweala told the lawmakers that aside poor implementation of yearly budget, Nigeria needs to diversify its economy away from crude oil related earnings.