CHAPTER
4
ECONOMIC
GOVERNANCE
AND
MANAGEMENT
4.0
INTRODUCTION
The
government
has
shown
commitment
to
improving
macroeconomic
governance
through
the
implementation
of
prudent
monetary,
fiscal
and
trade
policies.
However,
the
unfavourable
external
environment
continues
to
pose
tremendous
challenges
economic
management.
Inflation,
interest
rate
and
fiscal
deficits
have
all
increased
mainly
as
a
result
of
external
shock.
This
evidently
confirms
the
need
for
a
macroeconomic
model
and
consequently
the
development
of
alternative
budget.
The
GOG
has
also
taken
steps
to
manage
the
external
and
domestic
debt.
However
more
need
to
be
done
in
this
area.
The
quantum
of
both
domestic
and
external
debt
has
increased
though
the
debt-‐to-‐GDP
ratio
has
decrease.
The
decision
by
the
Government
to
enact
a
Bill
on
Fiscal
Transparency
is
welcoming
and
should
be
perused
with
all
seriousness
to
reduce
government
deficits.
5
In
the
area
of
tax
administration,
policy
measures
have
yielded
results
however,
roping
in
the
informal
sector
and
the
collection
of
arrears
still
pose
a
serious
challenge.
Implementation
of
ECOWAS
protocols
on
regional
integration
are
on
course.
However
more
need
to
be
done
by
private
stakeholders
to
educate
their
members
on
the
protocols.
Also,
the
relevant
revenue
agencies
should
pay
more
emphasis
on
gathering
accurate
data
and
on
timely
basis
to
enable
the
country
benefit
from
the
compensation
fund.
A
notable
observation
is
that
the
government
is
not
doing
well
in
the
area
of
satisfying
the
convergence
criteria.
As
at
the
end
of
2007
only
one
of
the
convergence
criteria
has
been
satisfied.
The
country
has
made
some
successes
in
the
area
of
economic
management
and
governance.
However,
the
gains
made
are
fragile
and
need
to
be
deepened.
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