IMF commends Nigeria's fiscal responsibility act

17:19, July 13, 2010      

Email | Print | Subscribe | Comments | Forum 

The International Monetary Fund (IMF) said in Abuja on Monday that the Fiscal Responsibility Act in Nigeria was working and doing fine in accordance with international standards.

Mark Horton, who led a delegation of IMF officials to Nigeria, said they were in the country to study its economy and fiscal responsibility.

Horton told reporters after visiting the Chairman of Nigeria's Fiscal Responsibility Commission Aliyu Yelwa, that they were undertaking the study toward establishing a Sovereign Wealth Fund.

He added that their interest was also in studying the Federal Allocation Account (FAC) as it related to the countries three tiers of government.

"We are, however, encouraged with the operations of the FRC and mostly delighted that developmental progress is being made in the country," the IMF official told reporters.

"We are also very happy that the Fiscal Responsibility Act in Nigeria is working in line with international standards," he said.

"However, some of the operational aspects of the FRC need to be strengthened while stronger enforcement provision should be made for it to enable it to function maximally," Horton added.

According to him, the Sovereign Wealth Fund when established would provide insurance when oil prices go down as funds could be drawn from it to prevent possible debt crisis.

Horton added that the fund would bring about improved management of public finance as it will allow spending to proceed more smoothly such that it will not fluctuate with oil prices.

He said the advantage of having such fund in place was to guarantee the continuation of government projects in an event of a decline in oil price.

Earlier, Yelwa said alternative ways of managing Nigeria's Excess (extra-budgetary) Crude Account was being proposed to ensure better distribution and investment of the fund.

He told the delegation that the commission was responsible for explaining the country's oil price rule and fiscal outlook.

He said the commission was also working on enthroning a fiscal responsibility that would ensure transparency and accountability in public expenditure management in the country.

He added that the country's economy prior to 2004 was characterized by a high degree macroeconomic volatility driven by over dependence on oil export earnings, weak fiscal discipline and oil earning fluctuations directly into the domestic economy.

"To address the situation, the government had separated public expenditure from oil revenue earning by introducing an oil price- based fiscal rule," he added.

Source: Xinhua

(Editor:李牧(实习))

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
  • Photo taken on Sept. 29, 2011 shows strong wind blows trees in Sanya, south China's Hainan Province. Typhoon Nesat heads towards south China and is moving at an average wind speed of 20 km per hour toward the west coast of China's Guangdong Province. (Xinhua/Hou Jiansen)
  • A fallen tree is seen on a road in Qionghai, south China's Hainan Province, Sept. 29, 2011. Typhoon Nesat was predicted to land in Hainan later Thursday, bringing heavy rainfalls to the island. (Xinhua/Meng Zhongde)
  • Arash Kamalvand (L) of Iran spikes the ball during the semifinal against South Korea at the 16th Asian Men's Volleyball Championship in Tehran, Iran, Sept. 28, 2011. Iran won 3-1 to advance to the final. (Xinhua/Ahmad Halabisaz)
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
Hot Forum Discussion