FCT faces economic instability amidst fluctuations in oil prices — Perm. Sec.
Alhaji Adamu Wanki, the Permanent Secretary, Treasury and Budget, Federal Capital Territory (FCT) administration, says Nigeria, particularly the FCT, faces significant economic volatility, occasioned by fluctuations in oil prices.
Wanki stated this at the Chartered Institute of Treasury Management (CITM) mandatory continuous training program/induction in Abuja on Thursday.
Supreme News reports that the program was entitled "Challenges of Managing the Treasury and Funding Critical Infrastructure in a Volatile Economy: The FCT Administration Experience.”
Wanki, who described oil as a major source of government revenue in Nigeria, said that others, such as inflation, currency devaluation, and external debt pressures, were main contributory factors.
He said that FCT, as the seat of the Nigerian government, was affected by revenue fluctuations, adding that a large proportion of revenue in the FCT came from the federal government’s allocation.
The permanent secretary said that this was tied to oil revenues, adding: “When oil prices fall, the federal allocation reduces, which puts pressure on the FCT’s treasury and hampers infrastructure development.”
On inflation and currency depreciation, he said that the devaluation of the naira had escalated costs of imported materials, construction projects, and maintenance of infrastructure.
This, Wanki said, could lead to delays in projects and reduced purchasing power for government initiatives, adding that critical infrastructure was needed in the FCT.
According to him, FCT is home to several essential government buildings, administrative offices, and services that require constant funding for maintenance, expansion, and modernisation.
The permanent secretary listed key infrastructure needed in the FCT to include transport, roads, railways, and airports, which, he said, required significant investments for expansion, maintenance, and modernisation.
Though he said that FCT had witnessed major road infrastructure projects like the Abuja light rail, he, however, said that they required continuous funding.
Also speaking, the Registrar of CITM, Dr. Olumide Adedoyin, said that the training was about the evolving landscape of Treasury management, sustainability, excellence, and financial probity.
Adedoyin stated that sustainability was about building management functions and its success, where there was not much success.
“Every sector of the economy does not have enough money to run the processes. So how do you manage effectively the processes? How do you manage the debt?” he queried.
The registrar stressed the need to encompass the environment, the social, and the governance (ESG) into financial planning in the country.
“How do you go green, making sure that whatever you are doing is sustainable in terms of finance and in carrying other elements in realising your goal, whether in government projects, organisations, or manufacturing?” he asked.
Adedoyin said that the Federal Government was doing its best by prioritising lots of issues, even as he urged the government to support the CITM training.
This, he said, would assist lots of processes, bring specialised knowledge, and be impactful to who needed it.
