Friday, 8 January 2016

The Gospel Of Change According To IMF Boss, Lagarde.

Christine Lagarde the well respected Managing Director of International Monetary Fund(IMF) stepped her feet on the Nigerian soil again for the second time on Monday, 4th January, 2016. Her first visit to Nigeria was in 2011. 
Since her arrival, she has remained the major headline topic of most notable news platform and blogs, giving one solution or the other to Nigeria's myriad of problems, one would think a messiah have arrived with a gospel of change and a trailer load of solution to our problems. Amongst many things, Lagarde outlined four hard economy decisions that must be taken.

Trust miss Patriotic, i read her words carefully and came up with "Gospel of Change according to IMF boss, Lagarde." This is a simple writeup, outlining four major hard economy decisions Nigerian leaders have to make in order to move the country forward. Continue.......

l. Removal of Fuel Subsidy - “The move by the government to remove the fuel subsidy is good. Those people who need the subsidy can receive cash transfer. Fuel subsidies are hard to defend. Subsidies are no longer good. But I hear that it will hurt the poor. Forty per cent of fuel subsidies in rich countries go to rich families. The people do not really need the subsidy. Look at the number of people who stay at stations trying to buy fuel.” 
2. Increment of VAT payment - ‎”The new reality of low oil prices and low oil revenues means that the fiscal challenge facing government is no longer about how to divide the proceeds of Nigeria’s oil wealth, but what needs to be done so that Nigeria can deliver to its people the public services they deserve in education, health or infrastructure. This means that hard decisions will need to be taken on revenue, expenditure, debt, and investment going forward. My policy refrain is this: ‎By stepping up revenue mobilisation. The first step is to broaden the tax base and reduce leakages by improving compliance and enhancing collection efficiency."
3. Increased anti-corruption drive - “Corruption not only corrodes public trust, but it also destroys confidence and diminishes the potential for strong economic growth. At the global level, it is estimated that the cost of corruption is equivalent to more than 5 percent of world GDP1, with over US$ 1 trillion paid in bribes each year.
4. Controlled borrowing-“Nigeria’s debt is relatively low at about 12 per cent of GDP, but it weighs heavily on the public purse. Already, about 35 kobo of every naira collected by the Federal Government is used to service outstanding public debt.”

Will leave the points to experts to dissert. My aim is to highlight them, call on all stake holders to roll up their sleeves and get to work on solving our economy issues. Hard as they seem, heeding to the IMF boss advice could play a major role in re-building the nation's economy. Will our leaders engage any of her proffered solutions? What do Nigerian economy experts think about her gospel of change? What do you think as a Nigerian?

I see a light at the end of the tunnel, but we must keep moving to get to the end of the tunnel. I think we need to make a move in the light of Lagarde's advice. 
She has left us with some strong words in which to build with. Nigerian leaders and indeed all Nigerians must not treat it lightly.

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