Fresh measures to check meltdown coming , says VP
From Simeon Nwakaudu, Makurdi
VICE President Goodluck Jonathan yesterday assured that the Federal Government was putting in place fresh measures to cushion the impact of the global economic crisis.
While declaring open the 2009 National Council on Finance and Economic Development in Makurdi with the theme "Global Recession and Nigeria's Economy," he noted that the Central Bank of Nigeria (CBN) had adopted new measures to check the negative effects of the global economic crisis, adding that the Federal Government was also adopting other strategies in the interest of the nation
The Vice President, who was represented by the Enugu State Governor, Sullivan Chime, regretted that the excess crude account had become a source of contention among the three tiers of government. He traced the origin of the excess crude account to the first eight years of the current democratic era, when the price of petroleum products far exceeded the budgetary benchmark set by the Federal Government.
According to him, in the last few months, especially in January 2009, the price of petroleum fell far below the budgetary benchmark of $45 per barrel, with the Organisation of Petroleum Exporting Countries (OPEC) reducing the production quota of the nation below the expected quota at the time of preparing the 2009 budget.
"It is sad to note that the Excess Crude Account, which was opened during the first eight years of democracy, when the price of petroleum product exceeded the budgetary benchmark and was meant for the rainy day, is now a source of contention between the different tiers of government," he said.
He said the N350 billion approved by the Federal Government for the increase of electricity generation from 3,000 mega watts to 6,000 mega watts by December 2009 and the N70 billion bailout plan for the textile industry would have a combined effect of improving the nation's economy during the economic meltdown.
In his keynote address, Finance Minister, Dr. Mansur Muhktar, said the Federal Government would adopt all possible measures to ensure that the nation moved away from the economic crisis in a better condition than expected.
He said despite the problems associated with the economic meltdown, there was light at the end of the tunnel, as the economic crises of the 1930s and the 1970s only aided the western nations to become economically stronger at the end of the day.
He appealed to the Finance Commissioners of the 36 states of the federation to cooperate with the Federal Government in tackling the problems associated with the economic crisis, as the nation has only one economy.
Muhktar said the effects of the global economic crisis descended on the African economy suddenly, as the International Monetary Fund (IMF), as at September 2008 adjudged the economies of eight African nations, Nigeria's inclusive, as frontier economies.
Benue State Governor, Gabriel Suswam, advised the Federation Accounts Allocation Committee (FAAC) not to deviate from what was agreed at the recent Abuja meeting on the funds to be allocated to different tiers of government.
Suswam noted that the effects of the global economic crisis were hitting hard on the states, as many of them were finding it hard to pay salaries. He advised the conference to suggest ways of weathering the storm, rather than concentrating on the issue of merely sharing allocations for the month.
The meeting also had in attendance the Minister of State for Finance, Remi Babalola, the Accountant General of the Federation, Ibrahim Dankwambo along with the Commissioners of Finance from the 36 states and their Accountants general.
