By Udeme Clement & Anthonia Onwuka

 Jonathan should focus on the National Development Plan and not on MTFF
Prof. Akpan Ekpo,  Director General, West African Institute for Financial and Economic Management (WAIFEM), owned by the Central Banks of Anglophone West Africa (Nigeria, Sierra Leone, Ghana, Gambia and Liberia)

The Federal Government has an economic blue print launched in December 2009, titled, ‘Vision 20:2020 Economic Transformation Blueprint’. The implementation of the blueprint is supposed to make Nigeria one of the 20 largest economies in the world by year 2020. The document is to be implemented by a series of four-year development plans. The first national implementation plan which covers 2010 to 2013 has been accepted by the President. The document contains development priorities of government with detailed projects and costing.

The Medium Term Expenditure Framework (MTEF) was introduced when we abandoned planning, but now we are back to planning, why do we still need MTEF. The document of 2010 to 2013 which is the first stage of the perspective plan is already in place.  MTEF is only about fiscal strategy of revenue and expenditure, so we should be taking our yearly plan from the blue print, which is the budget to parliament to avoid contradiction in our fiscal activities. We must examine the content of MTEF properly to ensure that capital expenditure does not deviate from what is in the development plan already in place. This is because the revenue projection if not well handled could create problems, especially if the price of crude oil declines beyond the projected figures in MTEF.

The Role of Data

In MTEF,
by Boniface Amobi: National Bureau of Statistics, Presidency, Abuja
Government needs credible data at its disposal to fully implement both the National Development Plan and the MTEF to enhance holistic economic growth and development in all sectors. Adequate data production is very important because government and the new economic team require credible data to help in making decisions and policies implementation at all times. For instance, government needs accurate data to determine what basic amenities are needed and appropriate locations to put public goods for the benefit of the citizens at every given time. Government should make data production a national issue with sufficient revenue allocated for it and not just a project financed by the Central Bank of Nigeria (CBN) alone.

 MTEF would create jobs but
Mr. David Adonri, CEO, Lambeth Trust and Investment
The Medium Term Expenditure Framework (MTEF) would be useful if the money is to be spent on infrastructure development and capital projects at different regions across the country. This is because it would boost economic growth and development now and in the long_run. If adequately implemented, it would create jobs to tackle the persisting unemployment problem in the economy. But if the money is for recurrent expenditure, it would not help the economy in any way. Rather, it would compel the monetary authority to increase the interest rate.

Consultations from Stakeholders Matter
Richard Tinubu, Management and Financial Consultant to Osun State government.
Government is charged with the responsibility of growing the economy and providing public good.

Therefore, the MTEF is designed to guide government carry out its responsibilities as an institution of the state.  This implies that government needs effective policy implementation strategy to continue to create wealth among the citizenry. Beyond that, government must continue to look inward with a view to satisfying the yearnings of the people in the area of welfarism geared towards infrastructure renewal.

This requires efficient banking industry capable of financing capital projects in different locations across the country. The government should continue to develop the nation’s domestic bond market in such a way that the private sector players could borrow to invest and finance projects with long term benefits. This would pave the way for sustainable growth in the economy.