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Nigeria
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Iweala-Okonjo’s transformation agenda
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Dr Ngozi Iweala-Okonjo, Nigeria’s Minister of Finance
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he New World Nigeria investor’s summit, held in London in the UK, drew together a galaxy of Nigeria’s top cabinet ministers and State governors to present Nigeria’s case as an investment destination. On the first day of this three-day event, cosponsored by Nigeria Olympic Committee and Bank of Industry and organised by Brand Communications, Dr Ngozi Iweala-Okonjo, the Minister of Finance, made a compelling case for the significant economic achievements that have been introduced in recent years. She opened her remarks by insisting that the main thrust of her economic policies has been to transform an expansionary budget into one of fiscal consolidation. This, she told delegates would stimulate growth. “We recognise that we must manage our macroeconomy wisely,” she said before describing how the insertion of a benchmark oil price within the national budget, first introduced
by her when she previously served in formerPresident Olusegun Obasanjo’s administration, has had the effect of bearing down on volatility. The 2012 budget’s benchmark oil price was set at US$72, down from US$75 in 2011, and considerably below the actual spot oil price that has been consistently above US$100 this year. Running through the main economic indicators, Iweala-Okonjo pointed out that the State’s recurrent expenditure, as a percentage of the budget, has been falling steadily, from the 77.18 per cent of 2010 to 74.13 per cent last year and 71.47 per cent this year. Capital expenditure has, meanwhile, been rising from 22.82 per cent and 25.57 per cent to 28.53 per cent in the years 2010, 2011 and 2012 respectively. The fiscal deficit, currently standing at N1,136bn (US$7.126bn), or 2.85 per cent, has been falling from the 3.35 per cent of 2010 and 2.96 per cent in 2011.
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