President Muhammadu Buhari has described as regrettable the continued
loss of public funds through illicit financial flows, saying it remained
an impediment to development and effort by developing countries to scale
up resource mobilisation.
The occasion was a high-level dialogue on “Financing for development”
with the theme: “Putting resources to work for more equal, sustainable
societies, including combating illicit financial flows” at the 74th
United Nations General Assembly (UNGA) in New York at the weekend.
Minister of State for Budget and National Planning, Prince Clem Ikanade
Agba, delivered the President’s speech on the occasion. The President
returned to Abuja last Saturday.
The President said that multilateral efforts at resolving the problems
of illicit financial flows should be comprehensive and holistic with the
active engagement of the origin and recipient countries.
“In this connection, my administration has demonstrated the required
political will to ensure the independence of all anti-corruption
agencies in Nigeria and reviewed enabling anti-graft laws,” he stated.
He encouraged member states to join “our efforts to strengthen the
United Nations Convention Against Corruption (UNCAC) and support the
Stolen Asset Recovery Initiatives of the United Nations and the World
Bank.”
President Buhari also said that, “Nigeria recognises the importance of
Diaspora Remittance, Foreign Direct Investment (FDI) and Official
Development Assistance (ODA) in providing further channels to fund
development projects.
“As a result, we call on our development partners to live up to their
commitment to achieve the target of 0.7 per cent of ODA/Gross National
Income (GNI) and 0.15 to 0.20 per cent of ODA/GNI to least developed
countries.”
He said the meeting provided for him a veritable platform to highlight
some of the policies and achievements of his administration in the last
couple of years.
According to him, “We have mobilised significant domestic resources to
finance critical projects aimed at addressing inequality, ensuring
social inclusion and sustainable development.”
He declared that four years after member states committed to the
adoption of the Addis Ababa Action Agenda (AAAA), and the Sustainable
Development Goals (SDGs), “the question on how to finance such an
ambitious agenda remains.”
The President said: “We believe that achieving the objectives of the
2030 Agenda is a task for all nations; however, it should be recognised
that many Developing and Least Developed Countries are in dire need of
financial assistance far and above what they can mobilise within
national boundaries.”
He told the gathering that, “As part of my Administration’s effort to
implement the SDGs by the year 2030, we have identified and implemented
several policies to diversify the revenue base.
“The Single Treasury Account (TSA), Integrated Personnel Payroll
Information System (IPPIS), Executive Orders on the Voluntary Assets and
Income Declaration Scheme (VAIDS) and Ease of Doing Business have all
been introduced. The objective is to ensure efficiency in resource
mobilisation and avoid over-reliance on revenue from crude oil.”
The President said that Nigeria had substantially scaled up its efforts
to mobilise domestic resources for development purposes, adding that “we
have broadened the formal sector of the economy and carried out major
reforms in tax administration, ushering in a progressive, modernised tax
policy and efficient tax collection system.
“Our effort in this regard could be enhanced by strengthening
international tax cooperation to minimise incidences of tax avoidance
and tax transfer.”
He noted that Nigeria “is actively involved in the work of the United
Nations Committee of Experts on International Cooperation in Tax
Matters,” pointing out that “We, therefore, support the call for the
upgrading of this Committee to an Intergovernmental body that will
represent the interest of all members and mainstream its work into the
broader development effort of the United Nations.”
He added that, “My Government is investing heavily in the social sector
through the introduction of the National Social Investment Programme
(NSIP) to achieve Sustainable and Inclusive Development.
“Through this programme, we have empowered youths; created jobs;
increased enrollment of pupils in public schools; supported the
vulnerable groups; provided Nigerians living below the poverty line with
means of subsistence; and extended material and financial support to the
Internally Displaced Persons (IDPs).
“The funding for this flagship programme is provided annually from the
Treasury with requisite budgetary appropriation.”
Explaining that debt instruments were also important tools for financing
investment critical to achieving sustainable development for many
countries, President Buhari said that Nigeria was, however, mindful of
the principles of responsible sovereign lending and borrowing and,
therefore, would continue to ensure that funds raised would be utilized
for critical national development.