Finance Minister of Nigeria: Role, Challenges, and Impact

The position of Finance Minister of Nigeria is important in determining the discourses on economic policies and financial management in the country. As the chief of the Ministry of Finance, the Finance Minister's authority encompasses nurturing state finances, devising strategies to achieve growth in the economic activities and protecting state financial resources. Oftentimes the Finance Minister of Nigeria assumes the primary position in problems inter alia inflation, unduly volatile exchange rates and national debt burden, which impact heavily on the general welfare of the society.

The Role of Minister of Finance in Nigeria

The Finance Minister supervises the economic policies that all the other government Ministries must work within and that sets the direction for example of the Nigerian economy. In this case, it implies making the national budget, budgeting for the income and expenses of state agencies, and planning policies seeking investments or economic expansion. The tasks of the Finance Minister include the supervision of public budgets and public finance management and spending control in accordance with the laws, international financial community contacts and enhancement for production factors.

The Finance Minister of the Federal Republic of Nigeria and His/Her Key Responsibilities

1. Budget Preparation and Management: The Finance Minister is responsible for the government’s budgets and estimates for the fiscal year. Extensive consultations with different ministries departments, as well as external stakeholders, are warranted in order to ensure that the budget is consistent with the government’s policy goals in relation to the International Monetary Fund (IMF).

2. Revenue Generation and Allocation: This includes activities such as taxation and other earnings by the government, which are then used for various expenditures. They also allocate such resources to other sectors like health, education, infrastructure, security among other areas.

3. Debt Management: Nigeria’s national debt is the responsibility of the Finance Minister, a role considered difficult and quite a challenge. This entails working with foreign lenders, obtaining funds and making sure the country does not accumulate levels of debt that cannot be serviced.

4. Financial Regulation: The Finance Minister appears to liaise with important financial supervisory institutions in the country such as the central bank of Nigeria on the efficiency and stability of the financial system. This involves the design of measures aimed at averting untoward occurrences in the financial system and ensuring that the economy remains healthy.

5. Economic Planning and Development: Measures are put in place by the Finance Minister to ensure that economic growth is achieved, poverty levels are minimized and job opportunities are created. Such development plans include cross sectoral integration whose goal is to achieve economic diversity and disharmony cut.

Limitations of the Nigeria Finance Minister

The position of Finance Minister in Nigeria comes with associated constraints because of the nature of the economy in the country. The following are details of these constraints.

• Management of Inflation levels: Nigeria has continued to have very high inflation levels impacting on the basic needs of the populace and the economy as a whole. Policies that the Finance minister has to contend with must incorporate inflation control within the growth and stability framework.

• Exchange rate management: These are changes in the value of the Naira, that have particularly been a challenge with regard to imports, exports and foreign direct investment. The Finance Minister works with the Central bank of Nigeria on these variations and assists in creating a stable economic system.

• Cutting down on national Debt: The national debt of Nigeria has continued to grow, which has put pressure on the office of the Finance minister. To achieve this, there has to be a scrupulous combination of borrowing and production of revenue, trimming of the wasteful expenditures and boosting of production activities.

• Economy Sensitization Diversification: Policies that the Finance minister has to contend with must promote growth and development in non-oil sectors that can be deemed as contributory to economic growth and enhancement.

Recent Initiatives by the Finance Minister of Nigeria

Under the current leadership of Finance Minister, Nigeria has taken several steps in these areas so as to enhance economic growth.

1. Economic Sustainability Plan (ESP): Given the socio-economic deploration of the nation due to the COVID-19 outbreak, the Finance Minister has played a significant role in the launching of the Economic Sustainability Plan which is primarily on wealth and job creation, affordable housing, support for SMEs and investments in certain sectors.

2. Tax Reforms: The Minister of Finance has proposed several tax reforms which include direct appealing for tax revenue to the citizens and this is inside the budget so as not to over tax the citizens. Such reforms include expansion of the tax base, taxation and collection, tax upholding etc.

3. Debt Restructuring: The Finance Minister has reached out to international creditors in relation to Nigeria’s debt services repayment, thus, negotiating more favorable terms on their repayment and placing less strain on the ‘economy.’

4. Financial Inclusion: To the Finance Minister, that does not end with financial access for the rural populations since its other focus area is financial inclusion, rural populations with limited access to MFI’s due to location are the priority.

The Outcome of the Policies of the Minister of Finance

The strategies and programs adopted and implemented by the Nigeria Finance Minister have been of effect on the economy of Nigeria:

• Enhanced Revenue from Taxation: By implementing appropriate tax reforms and revenue enhancement avenues, the Finance Minister has increased government revenues to the accruals which have changed the deficit status to a surplus allowing more focusing on national development programs.

• Macroeconomic Stability: Through controlling prices and exchange rates, the Finance Minister has played a part in ensuring better macroeconomic stability which has seen increased foreign direct investment to Nigeria.

• Encouragement and Support of SMEs and Employment Rate: Through the strategies deployed by the Finance Minister aimed at encouraging SMEs and job creation, more employment opportunities have been created reducing the unemployment rates in the country.

• Restructuring of Debt: Actions that have been taken to restructure the naional debt have reduced the monetary liabilities creating an opportunity for the government to make use of developed opportunities to implement development related projects.

Conclusion

It is noteworthy that the Finance Minister of Nigeria is a key person who navigates the nation’s economy through thickets while ensuring there are no set backs in the growth process. Ranging from the management of the country’s public finances to pushing through the reforms that will encourage the diversification of the economy, there is no doubt that the Finance Minister’s position is vital for the betterment of Nigeria’s future. There is a systematic approach in developing policies and execution so that the Minister works on projects, which reinforce the economy of the country and positively affect the life of the Nigerians.

Fueled by a search for sustainable development and aiding growth, the Finance Minister still sits as the focal point of any focus that Nigeria may put towards its development goals.