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Sunday, 19 October 2014
Nigeria: Declining Revenue: FG Appoints Consultants On Cost Reduction Measures
The dwindling government revenue occasioned by lower price of Nigeria’s crude oil in the international market has made the federal government to embark on cost reduction measures.
One of such measures is the appointment of consultants to look into how to reduce the cost of governance and, thereby, ensure judicious use of the available resources.
The director of banking of supervision at the Central Bank of Nigeria (CBN), Mrs Tokunbo Martins, disclosed this yesterday in Abuja while briefing the press on the outcome of the Banker’s Committee meeting held at the apex bank headquarter.
In attendance at the briefing were Mr Sani Yinka of IBTC Bank, and Mr Peter Amangbo of Zenith Bank Plc.
Martins, who disclosed that the state of the Nigerian economy is sound in view of the positive and encouraging macroeconomic indicators, stated, however, that because Nigeria is part of the global economy, any unpalatable happenings within the global economy is bound to affect Nigeria.
One of the unpalatable happenings, according to her was the dwindling price of oil in the international market which she said had greatly affected Nigeria revenue. To manage the crisis situation, she said the government had to hire consultants to come out with ways of reducing the cost of governance.
Martins said the apex bank had also keyed into the cost reduction mesures by facilitating import substitution, a policy, which she said would make Nigeria to produce locally some of those things that are hitherto being imported, and thus conserve government revenue.