Economic Confidential, December 2007

NATIONAL

NACOFED Advocates Repairs of Refineries

The National Council on Finance and Economic Development (NACOFED) at the end of its conference in Bauchi advocated for the repairs of existing refineries and building new ones through private initiatives, as well as the protection of the nation’s pipelines through air and satellite surveillance. It has also identified excessive spending and borrowing as factors responsible for low macro economic aggregates in the country and advised all the three tiers of government to engage in planned borrowing and spending that would lead to productive outcomes.

In a communiqué issued after a two-day meeting of the council, it observed that there was virtual absence of institutionalized debt management system at the other tiers of government and urged the Directorate of Debt Management to introduce units at the sub-national level to ensure prudent borrowings and utilization of public funds.

The council further advised the government to establish a Monetary Fiscal Policy Coordinating Committee to articulate and resolve possible conflicts in the implementation of domestic debt management polices. This, the communiqué observed, should be made to be functional and active.

It further commended the role of the Central Bank of Nigeria (CBN) in the support of macro-economic stability through sound monetary policies. It however recommended that the country’s peculiarities be considered by adopting best practices in line with the resolve to put Nigeria among the 20 leading economies by the year 2020.

The council lamented the country’s over-reliance on oil for national revenue, describing it as unhealthy for the economy. It says that there was urgent need to pursue policies that would lead to the diversification of the economy.

It says that current infrastructure deficit must be neutralized through investment and public private partnership (PPP).