13 February 2009
Lagos — The Minister of Finance, Dr Mansur Mukhtar, on Thursday in Abuja, said that the global financial crisis had taken a toll on the revenue base of the Federal Government, forcing it to seek assistance from multilateral institutions.
He said that the assistance would, however, be concessionary and in line with the new policy of borrowing at little or no interest rates.
The minister said that the global meltdown had cut down foreign direct investments and also signaled the free fall of crude oil prices, which had always been the mainstay of the economy.
Mukhtar, who received a Japanese delegation on a visit to discuss resumption of Official Development Assistance (ODA) to Nigeria, said that government had started reaching out to bilateral and multilateral partners.
The minister said that the country had not benefited from ODA from donor countries because of the notion of being rich in natural and human resources.
"The typical impression is that Nigeria is an oil-rich country. But the resource base is low and the poverty level is very high compared to other African countries.
"We are worse off in poverty level than many African countries that receive ODA. You cannot tackle poverty in Africa, until you tackle the poverty in Nigeria," he said.
Mukhtar said that the realisation of the MDGs in Africa, especially the focus on reducing poverty, was still tied to the development efforts made in Nigeria.
"We have huge infrastructure deficit. We don't have good roads. We don't have a functioning railway system. What we have is a country with potential in terms of resources," he said.
The minister assured the delegation that the debt portfolio of the country is now stable, at less than 10 per cent of the GDP.
He said the debt ratio was about 30 per cent of the GDP before the debt cancellation in 2006.
The leader of the Japanese delegation, Takashi Miyahara, said that Japan was committed to the development of Africa and willing to extend its soft loan package to Nigeria.
He said that the delegation was in the country to see how Nigeria would benefit from the ODA as a soft loan by looking at its economic profile, especially on debt sustenance.
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