Our Problem Is Over Dependence On Fuel As The Only Income Source — Kemi Adeosun

Kemi Adeosun, the minister of finance, has expressed assurance that Nigeria will overcome its economic challenges without taking loan from the International Monetary Fund (IMF).

The Nation reports that the minister explained why the government refused to apply for IMF loans speaking at the ongoing Spring Meetings of the IMF-World Bank in Washington DC.

According to a statement issued by Festus Akanbi, the minister’s special adviser on media, on Saturday, April 16, Adeosun revealed that Nigeria was adapting to its new realities by implementing fiscal policies to steer the country back on track.

The minister expressed optimism that the fiscal policies and investments would boost Nigeria’s economy by 2017. “Nigeria is not sick.

The real vulnerability in the Nigerian economy is over-dependence on a single source of revenue – oil. “We have resolved to build resilience into the country’s economy to hedge against future oil shocks.

This is because dependence on oil brings about vulnerability and laziness. “So, we are doing a combination of things to diversify our economy, with revenue mobilisation to enable sufficient investment in developing the non-oil sectors.

“We have great opportunities to reset the Nigerian economy and ensure that as we go forward, growth will be in a sustainable manner so that we won’t be vulnerable to oil price fluctuations,” she said.

According to Adeosun, with a diversified economy the federal government will have opportunities for wealth creation. “The compelling business case in Nigeria is that the fundamentals remain very strong, a teaming, young growing population, rich in resources and with a government determined to finally get it right.

“The great thing is that long term investors recognise this and understand the difference between short term and long term issues and the case for Nigeria persuades one to plan for the longer term opportunities,’’ the minister noted.

Meanwhile, President Muhammadu Buhari who has recently returned from China revealed that his trip yielded about $6 billion investment for Nigeria.

He expressed optimism that the trip to China would have a positively huge impact on key sectors of the Nigerian economy including power, solid minerals, agriculture, housing and rail transportation.