EFFICIENCY UNIT IS ABOUT ACHIEVING MORE FROM GOVERNMENT SPENDING BY ELIMINATING WASTES AND INEFFICIENCIES’ -
The newly established Efficiency Unit in the Federal Ministry of Finance is a comprehensive public sector reform initiative whose mandate goes beyond merely regulating government procurement processes.
FINANCE MINISTER INAUGURATES INSURANCE (CONSOLIDATED) BILL REVIEW COMMITTEE
As part of ongoing efforts by the Federal Government to reposition the insurance industry and make it play a more critical role in the nation’s economy, the Minister of Finance, Mrs. Kemi Adeosun, recently in Abuja inaugurated a Committee to review the Insurance (Consolidated) Bill.
ADEOSUN: 2016 BUDGET WILL KICK-START OUR ECONOMIC RECOVERY
ADEOSUN: 2016 BUDGET WILL KICK-START OUR ECONOMIC RECOVERY
The federal government has restated its determination to achieve the recovery of slowing GDP growth and to forestall the remote possibility of recession through full implementation of the 2016 budget. The assurance was given by the Minister of Finance, Mrs. Kemi Adeosun in an article made available to the media on Thursday.
Noting that the focus of the current administration is to stimulate the economy and achieve a real GDP growth rate of 4.2 per cent by the implementation of the draft 2016 budget, the minister added that the administration is also determined to reduce the cost of governance, extract efficiencies in public service and enhance revenue collections. The administration plans to increase government expenditure on infrastructure i.e. Transport, Roads, Housing and Power with a view to achieving a substantial increase in gross capital formation and to fund the budget deficit and the negative trade balance in a cost effective and efficient manner, which will keep the government within the acceptable debt sustainable ratio that is expected of most emerging economies.
In the article titled, ‘Nigeria’s Economy: The Road to Recovery’, the Minister who acknowledged the impact of the sliding oil prices on the Nigeria’s economy said, “Our main macroeconomic objective is to use a government expenditure-led growth strategy in 2016, combined with a stimulant approach based on injections of more efficiently collected revenues and blocking of leakages. The combination of these fiscal injections will have a catalytic multiplier effect on the GDP growth rate.”
“The budget deficit is estimated at N2.2trn or 2.16 per cent of GDP based on an estimated benchmark oil price of $38pb. In view of present realities and the dynamics in the global oil markets, we have braced ourselves for the probability of a further decline in oil prices. Even though we believe the average price of oil in 2016 will recover, we have developed a shadow budgeting process with tactical responses to build in the flexibility in our borrowing needs. This way, we will not undermine the fundamental principle of the economic stimulus model used by countries facing a contraction in economic activities and growth.”
Adeosun pledged the resolve of the current administration to go ahead with its robust commitments on infrastructure despite the present oil price. She said, “We are firmly committed to the countercyclical budget expenditure model. Therefore we will not reduce our investment in infrastructure i.e. Transport, Roads, Housing and Power. Our deficit will expand by N0.8trn to N3trn, which will be 3per cent of GDP. This is still within the comfort zone for the international rating agencies.”
FG SET TO REVIEW INSURANCE (CONSOLIDATED) BILL
The Federal Government has concluded plans to review The Insurance (Consolidated) Bill. This move is aimed at making the Bill conform to the ideals of contemporary insurance practice and ensure an efficient insurance industry in the country. It is expected that the review will form the basis of a new draft Bill, which will be sent to the National Assembly for consideration.
The Minister of Finance, Mrs. Kemi Adeosun, disclosed that a committee has been constituted to carry out the review. The Review Committee, with members drawn from the public and private sectors, is to submit its report within three months.
The Review Committee, soon to be inaugurated by the Minister, is chaired by Dr. Omogbai – Omo Eboh, a renowned expert in Insurance Law, while Dr. Talmiz Usman (Head of Legal Department, NAICOM) is the Secretary. Members of the Committee include a Representative of Ministry of Finance; a Representative of National Insurance Commission; a Representative of Nigeria Insurers’ Association and a Representative of Nigeria Council of Registered Insurance Brokers. Other members include a Representative of Institute of Loss Adjusters of Nigeria; a Representative of Attorney General of the Federation; Kamar Raji Esq and Dr. Ladi Hamalai of the National Institute of Legal Studies.
The Minister said the activities of the Review Committee will be fully funded by the National Insurance Commission, which is the statutory agency of the Federal Government established to regulate and supervise the Nigerian Insurance Sector.
According to the Minister, the Terms of Reference of the Review Committee include a critical review of the draft Insurance (Consolidated) Bill, with a view to making it a Framework or principle-based Legislation; a comparative review of the Bill to align it with the powers of other financial regulators in the country as well as a thorough examination of current market problems and recommendation of appropriate regulatory powers to allow the Insurance Regulator act appropriately.
Furthermore, the Review Committee is to undertake a review of all other Insurance Laws and update the draft Insurance (Consolidated) Bill to align with international best practices. The Committee is also to make other recommendations as it deems fit for the overall good of the nation’s insurance industry.