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IMF calls for spending reform by governments
The International Monetary Fund has said that member countries must embark on government spending reforms stating that in many countries, public finances remain on edge as economies struggle to return to pre-crisis levels of economic growth. At the ongoing Spring Meeting it highlighted the need for governments to embark on growth-supporting fiscal reforms that will bring social economic benefits to their citizenry.
It said that ensuring the sustainability of public finances requires difficult choices on both the taxation and spending sides of the budget. “While tax reform can help boost potential growth through the removal of distortions, spending reforms help strengthen public service delivery. Coupled with the projected increase in age-related expenditures resulting from an aging population, pressures on government spending in the future will only increase”.
According to IMF “The Fiscal Monitor sets out the main elements needed for meaningful spending reform: ensuring the sustainability of social spending and public sector wages noting that health care systems in many countries have room to improve efficiency without drastically cutting services. It said that for public pension systems, raising the retirement age and adjusting contributions and benefits are the key options. It further said that containing the growth of the public sector wage bill in a lasting way would require replacing the across-the-board wage and hiring freezes with deeper, efficiency-enhancing structural reforms supported by social dialogue.
It said that fiscal reforms by governments require achieving efficiency gains while aiming to reduce inequality and that large gains can be made in some countries by improving the efficiency of spending on education. In other countries, particularly emerging markets and low-income countries, improving the efficiency of public investment processes could make it easier to meet infrastructure needs.
It suggested the Establishment of institutions that promote spending control. Fiscal rules, such as those that define and limit spending, can impose binding commitments on the path of public spending. It said that decentralizing spending such that sub-national levels of government become more involved in delivery of services can help contain public sector growth and improve spending efficiency, provided it is well planned and implemented.
According to one of its report to members participating at the Spring Meeting, the IMF said it finds that recent policy moves have helped to broadly stabilize public debt ratios in most advanced economies, but debt in these countries remains at historic highs. The surge in public debt will take some time to unwind, and credible medium-term plans must be designed to both bring down debt ratios and at the same time enhance long-term growth prospects.
Across advanced economies, the pace of fiscal consolidation is set to slow in 2014 as focus shifts to how to best design fiscal policies supportive of both further consolidation and a still uneven recovery.
“In most countries, persistently high debt ratios continue to cast shadows over the medium term,” said Sanjeev Gupta, Acting Director of the IMF’s Fiscal Affairs Department. “Against this background, the top priority remains the design and implementation of credible medium-term consolidation plans to lower debt ratios to safer levels, while carefully balancing equity and efficiency goals.”
The IMF Fiscal Monitor is published twice a year to track public finance developments around the world. In 2013, a faster-than-expected pace of fiscal consolidation in several advanced economies helped stabilize the public debt ratio and reduce the average overall fiscal deficit among these economies to 5 per cent of GDP—almost half its peak in 2009.
Higher revenues, in part buoyed by growth, and lower spending helped both the United States and United Kingdom significantly narrow their 2013 budget deficits. In Japan, however, the deficit held steady at just under 8 percent of GDP, and the country is now stepping up its consolidation efforts. To dispel policy uncertainty and support a rebound in economic growth, formulating a longer-term, growth-friendly fiscal strategy remains a priority in Japan, as well as in the United States.
Although budget plans for 2015 have not yet been adopted, fiscal consolidation looks set to continue next year. As a result, debt-to-GDP ratios will start declining in about half of the highly indebted advanced economies by 2015—by end-2013 only a few had reached that point.
In emerging market economies, deficits remain significantly above pre-crisis levels, as most countries opted to postpone fiscal adjustment in 2014. In those emerging market economies closely integrated with international capital markets, the effects of normalizing global liquidity conditions is leading to increased borrowing costs and some financial volatility.
Even though the recent bouts of turbulence were not triggered by fiscal imbalances, less investor appetite for risk and tighter financing conditions may worsen the public debt situation in most of these countries. According to the Fiscal Monitor, well designed fiscal reform can boost investor confidence while at the same time strengthening safety nets and propping up domestic saving where it had been earlier eroded.
Fiscal deficits continued to widen in 2013 in many low-income countries as government spending persistently outpaced economic growth and revenue. Overall, debt ratios are projected to increase during the coming two years—although in most countries, at a moderate pace. Emerging evidence raises concerns on the efficiency of debt-financed spending; for example, it often does not seem to have been used to raise much needed public investment. According to the report, where fiscal adjustment is warranted in these countries, it should safeguard social safety nets and raise spending efficiency to address large remaining infrastructure gaps.
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Customs seizes multi million-naira petroleum products in Adamawa
The Nigeria Customs Service under ‘Operation Whirlwind’ has seized petroleum products worth N181.6 million in eight weeks between the Nigeria and Cameroon borders.
ACG Kolapo Oladeji, national coordinator of Operation Whirlwind, disclosed this at a news conference on Thursday in Yola. Mr Oladeji said the seizures were made across various smuggling flashpoints in Adamawa in 55 separate operations.
“This operation is geared towards energy and food security to foster economic growth in line with the core mandates of the President of the Federal Republic of Nigeria, Bola Tinubu. In line with these mandates, the Operation Whirlwind Zone ‘D’ had repositioned all its machinery across the area of its responsibilities and ensured that the border became airtight,” he said.
He warned the smugglers to stop such acts and solicited the continued support and cooperation of all stakeholders in the state’s socioeconomic development. “We will ensure that the supply chains of these economic wreckers are truncated in accordance with enabling laws. This fight has no doubt helped in transforming the nation’s economy and strengthening the security of our borders,” he said.
He further said that the seized petroleum products would be auctioned to the public. Abidemi Adewumi-Aluko, assistant legal adviser of the attorney general of the federation, described the auction as a symbol of reclaiming resources to ensure that the benefit of petroleum remained in Nigeria. She said that such offences attracted life imprisonment because they threatened national security. NAN
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Chevron to join Nigeria oil licence auction, plans rig deployment in 2026
Chevron said on Friday it will participate in Nigeria’s next oil licensing round and plans to deploy a drilling rig in late 2026 as it seeks to expand operations in Africa’s top energy producer.
Jim Swartz, chairman and managing director of Chevron Nigeria/Mid-Africa Business Unit, said the company aims to grow its footprint in Nigeria, citing improved regulatory clarity under the Petroleum Industry Act, PIA.
“We will participate in the next licensing round. Our intention is to continue to grow in Nigeria,” Swartz told reporters after meeting the upstream regulator. Nigeria’s licensing rounds are part of efforts to attract investment and boost output after years of underinvestment. The 2025 round will offer 50 fields through a digital platform, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said. TotalEnergies has also expressed interest in joining an auction.
Chevron recently agreed to acquire a 40% stake in two offshore exploration licences, PPL 2000 and PPL 2001, from TotalEnergies and is seeking regulatory approval to accelerate development.
Swartz said it plans to bring in a rig in late 2026 to drill a newly discovered resource near Agbami and extend leases on existing assets. Swartz added that Chevron had recorded no oil theft or sabotage in the past year, the longest period without disruptions in its Nigerian operations, a sign of improved security in the sector. Reuters
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Don’t patronise touts, immigration personnel available 24/7—CGIS
Comptroller General of the Nigeria Immigration Service NIS, Kemi Nandap, on Friday urged Nigerians to shun touts and middlemen when applying for passports or other immigration services, insisting that the Service operates round-the-clock channels to assist citizens directly and transparently.
Nandap made the call in Abuja while delivering the keynote address at the fourth-quarter Nationwide Sensitization Campaign against corruption and for improved service delivery.
The campaign, themed “Innovating for Transparency and Efficiency: Strengthening Service Delivery and Combating Corruption Through Reforms,” highlights the NIS’ ongoing efforts to modernize its operations and eliminate corrupt practices.
Addressing participants, the Immigration chief said the era of relying on agents or informal handlers should be over, as the Service has put in place fully digital, citizen-focused systems that allow applicants initiate and track their processes from the comfort of their homes.
She stressed that the NIS has functional 24-hour call lines, an active call centre, constantly monitored emails and social-media channels, all designed to ensure citizens are attended to promptly and without intermediaries.
“You don’t have to go to a tout, you don’t have to go to an agent. You can sit in the comfort of your home and apply for most of our facilities. Once you avoid putting yourself at the mercy of someone, you stay in control of your application and can always reach us at any time”, she stated.
Nandap noted that recent reforms, including automated passport application processes, biometric-based verification, expanded digital architecture and streamlined service-centre operations, have significantly reduced delays, improved transparency and minimised opportunities for extortion.
She explained that passport processing timelines have improved across multiple commands following the rollout of automated scheduling and digital communication platforms.
The Comptroller General also emphasized that transparency remains the foundation of effective immigration management.
She highlighted enhanced internal audits, stricter enforcement of ethical codes and redesigned workflows as key elements of the NIS’ anti-corruption strategy.
With digital payments and automated checkpoints reducing cash interactions, she said the Service is committed to stamping out malpractice at all levels.
Nandap further disclosed that the NIS has deepened collaboration with sister agencies, civil-society groups, international partners and the diplomatic community to align operations with global border-management standards.
These partnerships, she said, are helping to harmonise processes, promote accountability and support ongoing reforms.
She appealed to citizens to familiarise themselves with official procedures, follow approved channels and use the Service’s feedback platforms—including suggestion boxes, hotlines and online desks—to report challenges or offer recommendations. “We are here for Nigerians. Tell us how to serve you better,” she said.
The Immigration CG also paid tribute to officers who lost their lives in the line of duty in Mogolu, Tuga, Tula and Niger State, calling their deaths a painful reminder of the risks faced daily by immigration personnel.
She urged Nigerians and officers alike to embrace positive change, adding that sustainable reform depends on individual commitment and collective responsibility. “The change we want starts with each and every one of us,” she said.
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