The Nation Newspaper

Tag: Economic Recovery and Growth Plan (ERGP)

  • Buhari’s economic recovery plan an affront on constitution – Don

    Buhari’s economic recovery plan an affront on constitution – Don

    A university Don and member of the NLC/ASUU Think-Tank on the economy, Prof. Omotoye Olorode Saturday picked holes in the Economic Recovery and Growth Plan (ERGP) recently launched by President Muhammadu Buhari saying the policy was subversive and an affront on section II of the Nigerian constitution.

    Speaking at the 2017 Pre- May Day Lecture entitled “Labour Relations in Economic Recession: As Appraisal” jointly organised by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), Prof. Olorode said the document was an extension of the assault formally launched on the nation under military dictatorship in the mid-1980s.

    According to him, it is the same policies that have being imposed on the country by neoliberal forces that were replicated in the document which was launched with fanfare by the President, insisting that the document cannot drive the nation’s economic recovery plan.

    He said “from President Shehu Shagari’s austerity measures of the early 1980s to SAP, to vision 2010, 2020 and 20-2020 to today’s 2017 ERGP, the commitment of the ruling class has been to neoliberalism-private sector led economy characterized below and enforced overtime by the same personnel.”

    Citing part of the ERGP document, he said the document was articulated with the understanding that the role of government in the 21st century must evolve from that if being an omnibus provider of citizens’ needs into a force for eliminating the bottlenecks that impede innovations and market based solution.

    Prof, Olorode said the ERGP document was “an unequivocal re-statement of market fundamentalist assault against chapter II of the constitution of the federal republic of Nigeria, an assault formally launched under military dictatorship in the mid-1980s.

    “Nothing in the 2016 Strategic Implementation Plan to which the ERGP referred is new. Consequently, we must reiterate a segment of NLC policy document to show that the class interests of the succession of Nigeria’s ruling class regimes is antagonistic to that if the labouring people.

    “Given the continued neglect of education through underfunding and privatization, the claim of ERGP that the plan recognizes the need to leverage Science, Technology and Innovation and build a knowledge based economy is not just only sheer sloganeering, it is a cruel joke.

    “In any case, there is already a significant quantum of STI on ground in Nigeria to enable us address Nigeria’s most urgent needs in food production, safe and accessible drinking water, transpiration, energy, security, General education, housing, healthcare delivery and amelioration of environmental degradation.

    “It is this neoliberal programmes that the Nigeria ruling class is still peddling with the ERGP and the Nigeria Labour Congress and the entire Labour movement in Nigeria and at the global levels need to combatant in order to outlaw capitalist recession in Nigeria and throughout the world.”

    He insisted that the current war against corruption would not make any meaningful impact “as long as the Nigerian ruling class remains committed to private accumulation under new-liberal ideology which typically locates countries like Nigeria at the periphery of global capitalism.”

    In his remarks, President of the Nigeria Labour Congress (NLC), Comrade Ayuba Wabba lamented various government policies that has continued to impoverish the Nigerian people, adding that government policies has consistently favored employers against the workers and the Nigerian people.

    Wabba said “Today is a day of reflection and a day that we must recognize that no employer of Labour will be so generous to award us what we are demanding for. We have to get it through struggle and this is what we need to reflect on.

    “No politician seek office to actually better the lot of the people because they see politics as an investment. So is the issue of businesses around the world which is to make profit and so, we must continue as watchdog of the society continue to represent the interest of our members and the larger people.

    “No policy will be made that will serve our interest. That is why our duty has a,ways been policy contestation. Policies must be made to address our developmental challenges and address issues of inequality which has continued to be on the increase despite the fact that in the last one decade, global wealth has continue to increase. We create the wealth of every society, but what has been our bargain.

    “Poverty among working class has continued to increase. This year’s May Day calls for us to rededicate ourselves both as members and leaders to our collective struggle and continue to agitate for what is right to our society. There is no way the issue for insecurity will be addressed without addressing the twin issue from poverty and unemployment.”

    Wabba lashed out at former Vice President, Atiku Abubakar for opposing the idea of having uniform salary for workers across the country, adding that if political office holders can earn the same salaries irrespective of the resources available in their states, there was no reason why workers should not earn the same salaries across the country.

    He said: “in any case, we are not even canvassing for the same salary structure. We are talking of minimum and even in the most capitalist societies, you have minimum which is to protect the vulnerable and it cut across both public and private sector so that we don’t leave it to our respective employers to fix what they want.

    “We are saying that we must continue to maintain that minimum whereby no employer should pay below that. Today, even with the law, some employers are still paying below N10000 and that is modern slavery. They will try all means to divide us, but we should not be deterred because a people determined cannot be defeated.”

    President of the Trade Union Congress (TUC), Comrade Bobboi Kaigama said countries all over the world have always rejig their economy to make workers the priority of the state when the country is going through hard times, but lamented that the reverse has always been the case in Nigeria.

    He said: “We know that globally, countries go through tough times and that is when concerted efforts is made by the government to rejig the economy in such a way that workers are made the priority of the state. But in this country, the reverse is the case. As creators of wealth, we are seen as slaves to our slave masters.

    “During this year’s May Day, we intend to show the Nigerian government at all levels our displeasure. In the midst of recession, devaluation of the naira and the high cost of everything, the wage of the Nigerian worker is very constant.

    “We must remember that all the 36 states of the federation, except for the first generation states, all other states that followed through memos made it as their number one guarantee that they can pay workers’ salaries from their internally generated revenue. But the same states are the one reneging in the payment of salaries.

    “We will not stop calling on the governors that their states cannot pay workers’ salaries to resign because we strongly believe that no state in this country that cannot generate revenue internally to pay salaries except the governor is not serious. We are so lazy that we just sit down and wait for federal allocation while making our internally generated revenue our weekend fund.

    “If we continue that way, we will never go anywhere. So, we insist that any state governor that feels they cannot pay workers’ salaries through internally generated revenue should honorably resign because we know that we have the resources.”

     

  • Economic Recovery Plan: FG begins development of cost analysis

    Economic Recovery Plan: FG begins development of cost analysis

    The Federal Government says it has commenced a detailed cost analysis and financing plan, to achieve the Economic Recovery and Growth Plan (ERGP).

    The Minister of Budget and National Planning, Sen. Udo Udoma, said this at the 2017 Annual Public Lecture of the Nigerian Economic Society (NES) on Thursday in Abuja.

    The Theme of the Lecture is “Economic Management under an Era of Downturn’’.

    Udoma, represented by his ministry’s Director, Macroeconomic Analysis, Mr Tunde Lawal, said a team of experts had been put together to work on the plan in collaboration with the budget ministry and relevant bodies.

    “We have commenced the development of the ERPG implementation plan. The implementation roadmap will provide more detailed strategies, timelines and deliverables of the plan on a year-by-year basis.

    “The team of experts is expected to work out a more detailed cost estimate and financing plan with detailed key performance indicators for implementing the plan,’’ he said.

    Udoma said that the government was committed to providing an enabling environment for business to strive and for that reason, it would continue to prioritise spending on critical infrastructure.

    Udoma said Nigerians would soon begin to feel the impact of the Presidential Enabling Environment Council, which aimed to improve the country’s ranking on the ease of doing business.

    “Furthermore, there is a number of Public Private Partnership (PPP) projects included in the 2017 budget in the areas of critical infrastructure.

    “This is aimed at creating opportunities for the private sector to participate in the development of the country.

    “Therefore, while the government is committed to finding the resources to invest in infrastructure, the private sector and well meaning Nigerians should collectively create jobs and put our people back to work,’’ he said.

    Earlier, the President of the Nigerian Economic Society, Prof Ben Aigbokhan, tasked the Federal Government to identify and promote the development of sectors which Nigeria had a comparative advantage over others.

    An example of the sectors is the manufacturing and industrial areas.

    He said it was important for the government to implement policies that would lead to the industrialisation of the country.

    To do this, he said it was still necessary for the Central Bank of Nigeria to review its current exchange rate policy, to favour exporters and industrialists.

    Aigbokhan also called on the Federal Government to fine-tune the ERPG, which could take the country out of recession and ensure a more sustainable growth in future.

    President Mohammadu Buhari, earlier in April, launched the 2017-2020 ERGP, seeking to restore the nation’s economic status following the high rate of inflation and recession.

    It projects that Nigeria will make significant progress to achieve structural economic change with a more diversified and inclusive economy in five key areas by 2020.

    The areas are a stable macroeconomic environment, agricultural transformation, food security, sufficiency in energy and improved transportation infrastructure.

  • Buhari committed to growing Nigerian economy – Ngige

    Buhari committed to growing Nigerian economy – Ngige

    Minister of Labour and Employment, Sen. Chris Ngige has said that President Muhammadu Buhari was irrevocably committed to growing the Nigerian economy through strategic initiatives that engage the nation’s huge population as a fulcrum.

    Speaking at the on-going 2nd Ordinary Session of the Specialized Technical Committee on Social Development, Labour and Employment in Algiers, Algeria, Ngige said the recently released Medium Term Economic Recovery and Growth Plan (ERGP) is a paradigm shift in this direction.

    He said the Buhari administration has demonstrated its capacity to exploit our huge population for wealth creation and economic growth, which explains the capacity shown so far for an early exit from the current economic recession.

    He said: “Our shift is the engagement of our large population in well-articulated diversification programme which has shifted attention to agriculture and mining, in a process intended to be driven by diverse skills acquisition and subsequent job creation”.

    Presenting Nigeria’s position entitled “Investment in Employment and Social security For Harnessing Demographic Dividend” Ngige said Nigeria was resolute in exploiting the untapped potentials of huge   population to grow the economy through dynamic micro-economic policies.

    According to him, “The focus of the present administration in Nigeria is to invest in our huge population through massive job creation, youth empowerment, social inclusion and strengthening of our educational and health system so as to achieve macro-economic stability and diversification.

    “This is a pathway to building a global competitive economy that can stimulate private sector investments, infrastructural renewal, a major pathway to spend out of recession and improved business environment”.

    He disclosed that concerted efforts were being made to increase access to decent work for Nigerians through the implementation of National Policy on Employment whose document was reviewed in 2016 while creating job and skills acquisition centres which targets the 774 Local Government Areas as operational base.

    The Minister said 15 obsolete and retrogressive labour laws some of which date back to the colonial era have been sent to the National Assembly for review.

    The Minister enumerated other government efforts towards exploiting Nigeria’s huge population for jobs and skills development to include a nation-wide stop-gap jobs for unskilled persons through interventionist schemes in agriculture and mining, skills development and competency upgrade, reduction of miss-match between graduate skills and demands in modern labour market as well as the N-power programme, noting that women constitute a large percent  of the beneficiaries of these different programmes.

    On Social security, the Minister said that beyond a National Policy on Social Protection and Social Security which was conceived to drive universal human rights, inclusiveness and wealth re-distribution, the National Social Insurance Trust Fund, the National Health Insurance Scheme, Pension Commission and National Social Investment Programmes were core government agencies effectively providing social protection for vulnerable persons within their respective purviews.

     

     

  • Osinbajo inaugurates MSMEs Council

    Osinbajo inaugurates MSMEs Council

    Vice President Yemi Osinabjo on Wednesday inaugurated a streamlined and refocused National Council on Micro Small and Medium Enterprises (MSMEs).

    The Council, which is chaired by the Vice President and assisted by the Minister of Trade and Investment, Okechukwu Enelamah, has been reduced from an initial membership of 43 to 21.

    Osinbajo attributed the reduction to taking into consideration effectiveness in delivery.

    He said that the Council is expected to effectively coordinate the enterprise development efforts made by the various tiers of Government, International Development Partners (IDP) and the private sector towards job creation, wealth creation and poverty alleviation in Nigeria.

    Stressing that it was important to inaugurate the council even in the absence of some of its members, he said “There is much work to be done.”

    The council, which is the coordinating platform for the implementation of all development programmes within the sub-sector especially the National Enterprise Development Programme (NEDEP), a repackaged and strategic platform to deliver growth and sustainability within Nigeria’s micro, small, and medium enterprises sub-sector, was first launched in 2014 by the past administration.

    Osinbajo said that the MSME is the bedrock of Nigeria’s industrialization and inclusive economic development and the most important component of the industrialization drive in the country’s Economic Recovery and Growth Plan (ERGP), being the primary drivers of employment, wealth creation, and poverty alleviation.

    The Council, he said shall be the apex body on MSMEs development in the country, providing guidance and coordination on the establishment of strategies and policies for the wholesome support of MSME development in Nigeria.

    “It shall also engineer the institution of effective monitoring and evaluation strategies to ensure that MSMEs’ development targets are achieved.” he added

    The Council has membership drawn from the public and private sector institutions, and will have the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) as its secretariat.

    Osinbajo said “It is important to re-emphasize the point that this Council will have the same success delivery platform as the Presidential Enabling Business Environment Committee (PEBEC).

    “The membership of the Council has been streamlined for the purpose of achieving results without undue bureaucracy.  For instance, the existing membership has been reduced from 43 to 21 for effectiveness and purposefulness” he said.

    Terms of reference for the council include coordinating the activities of all stakeholders in both the  private and public sectors to ensure that all efforts and activities  are geared towards the priority sectors of the economy: Guiding the Federal Government on the formulation of broad policies and strategies to drive the wholesome development of the MSMEs sub-sector in Nigeria: Coordinating the roles and responsibilities of  Government  Ministries,  Departments and Agencies  (MDAs), State and Local  Governments and other  stakeholders responsible for MSME development:

    Promoting inter-agency synergy and cooperation in MSME development:

    Encouraging and strengthening Public-Private- Partnership and Public-Public-Partnership in MSME development:

    Ensuring the creation of an enabling environment to facilitate the development of MSME clusters, infrastructure upgrade, access to finance, MSME capacity building, etc:

    Fostering increased awareness and ensuring stakeholders’ buy-in on MSME development programmes, initiatives and projects:

    Ensuring the institution of an effective framework for monitoring and evaluating the impact of MSME policies, programmes, projects and initiatives:

    And ensuring that the principles of the National Policy on MSMEs are achieved and reviewed as the need arises.

    Members of the council include: The minister of Industry, Trade and Investment, Minister of state, Industry, Trade and Investment, Ministers of Finance, Mines and Steel Development, Agriculture, Communications, Budget and National Planning, Water Resources, Power,
    Works and Housing, Science and Technology, Women Affairs, Minister of state for Budget and National Planning, Central Bank Governor,  Chairman Nigeria Governors Forum, Economic Adviser to the President, Special Assistant to Vice President on MSMEs, President Manufacturers Association of Nigeria (MAN), President National Association of Small and Medium Enterprise, Director General SMEDAN and the Minister of Information.

     

  • Economic Plan: UN commends FG

    Economic Plan: UN commends FG

    The United Nations on Tuesday commended the Federal Government for its Economic Recovery and Growth Plan (ERGP) launched recently in Abuja.

    United Nations Development Programme (UNDP) Resident Representative in Nigeria, Mr Edward Kallon, made the commendation in Abuja on Tuesday at the launch of UNDP 2016 Human Development Report (HDR).

    Kallon expressed optimism that Nigeria had what was needed to surmount her challenges and pledged the support of the world body in this regard.

    He said that plans with its several medium-term policies and programmes were capable of keeping Nigeria on a positive development trajectory.

    According to him, this is because the ERGP focuses on restoring growth, investing in people and building a globally competitive economy.

    The UNDP boss also expressed satisfaction on the feat recorded by Nigeria in the Human Development Index (HDI) where it garnered 13.1 percent increase between 2005 and 2015.

    He called for tougher policies to enable the country to sustain gains made in human development.

    Kallon said that insecurity and the drop in prices of export commodities which were major earners in sub-Saharan Africa were fast eroding the gains.

    He said that Nigeria was faced with two major problems of economic recession and humanitarian crisis.

    “We are all aware of the humanitarian crisis in the North-East of the country and the looming famine in that region although efforts by humanitarian development actors, under the leadership of government, have yielded significant results.

    “Many challenges remain as an estimated 8.5 million people in that region are in urgent need of humanitarian assistance.

    “And, some 50,000 children are at ‘IPC level 5’ of food insecurity. The need for action, especially for the children, couldn’t be more urgent,” he said.

    The envoy advised the government to utilise the opportunity provided by the launch of the UN report to address the twin problems of economic recession and humanitarian crisis in the country.

    According to him, the nation should utilise the opportunity provided by the report to promote policy dialogue at national and sub-national levels.

    He called on Nigeria to as a matter of urgency find a lasting solution to the challenges in order to bring enduring development in the country.

    “The report shows that between 2005 and 2015, Nigeria’s HDI increased from 0.466 to 0.527, a 13.1 percent increase.

    “This is encouraging, but given the humanitarian challenges already alluded to, and economic recession witnessed in 2016, there is urgent need to design policies and programmes to ensure that upward trend in human development is not reversed.”

  • Nigeria ranked 152 in global human development index – UNDP report

    Nigeria ranked 152 in global human development index – UNDP report

    …says country records 13.1% improvement in last ten years

    Nigeria has been ranked 152 amongst the 193 United Nations (UN) member states in the latest Human Development Index (HDI) for 2016 released by the United Nations Development Programme (UNDP).

    The country is followed closely by Cameroon in number 153 and Zimbabwe in 154 position.

    The report places Nigeria below neighbouring Ghana which is placed 139, Gabon, 109, Zambia also in 139, Equitoria Guinea, 135.

    The report however showed a positive outlook for the country as it revealed 13.1 % increase in human development in the last ten years under review (2005-15).

    NDI indicates the number of people with access to education and other basic amenities. Human development is about enlarging freedoms so that all human beings can pursue choices that they value. HDI is a composite statistic of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development
    The global report was officially launched on 25th, March 2017 in Stocklom, while the Nigeria version was launched Tuesday.

    According to the report, Norway tops the log as the number one country in the Hunan Development Index and it’s closely followed by Switzerland and Australia which came joint second, Germany on the fourth position and Denmark number five.

    Speaking at the public presentation of the Report in Abuja yesterday, UNDP Resident Representative, Mr Edward Kallon, called for an urgent action by the government to sustain the gain.

    “The report shows that between 2005 and 2015, Nigeria’s HDI increased from 0.466 to 0.527 – a 13.1 percent increase.

    “This is encouraging, but given the humanitarian challenges already alluded to, and the economic recession witnessed in 2016, there is an urgent need to design policies and programmes to ensure that the upward trend in human development is not reversed.

    “As the 2014 HDR aptly noted success is not automatic and gains are not necessarily permanent,” he said
    He noted that the Economic Recovery and Growth Plan (ERGP) recently launched by the Federal Government outlined several medium-term policies and programmes that could keep Nigeria on a positive development trajectory.

    He said that the ERGP focused on restoring growth, investing in people and building a globally competitive economy.

    Kallon pledged the UNDP commitment to supporting both the Federal and State Governments in implementing programmes addressing the simultaneous eradication of poverty and signi ficant reduction of inequalities and exclusion in Nigeria.

    He described UNDP as the UN’s lead agency with a mandate to eradicate poverty, and promote sustainable human development everywhere in Nigeria.

    According to him UNDP has produced several National HDRs focusing on various issues defining development in Africa’s largest economy.

    He said that the reports would continue to shape policy interventions and public debate around many development issues affecting millions of people in the country.

    “The economic growth is necessary but not sufficient condition for human development; it is possible to achieve high levels of human development even with modest levels of growth.

    “What matters is the source and spread of growth; and how growth is managed and distributed for the benefit of everyone,” he said.

    He said that addressing the twin problems of economic recession and humanitarian crisis facing the country called for tough policy choices.

    “We should utilise the opportunity provided by the national launch of this report to promote policy dialogue, at both national and sub-national levels.

    “To enrich programmes aimed at implementing the ERGP and Growth Plan, the SDGs and AU’s Agenda 2063 to ensure that human development is realised for everyone and that no one is left behind,” he said.

    Minister of State, Budget and National Planning, Mrs Zainab Ahmed in her remarks said the launch of the report was timely.
    She however warned that the current humanitarian crisis in the North East is capable of reversing the gain if not properly addressed.

    She said, “The downturns in 2016 occasioned by the weak growth of investment, trade and productivity as well as the humanitarian crises are capable of infusing a reversal trend if not curtailed early.

    “​It is common knowledge today that violent extremism is the greatest threat to human improvement, especially the achievement of inclusive growth as put forward by the UNDP’s principle of Universalism. Following the Arab Spring which was initially thought of as a Mediterranean issue, violent extremism has engulfed the Lake Chad region, taking its toll on lives and property in North East Nigeria. Over 14 million people are affected with 1.8 million internally displaced persons to carter for in the three most affected States.”

    She stressed that human development could also be elusive when there is insecurity and deprivation.

    “Human Development cannot be for everyone in a situation where 14 million people are insecure and deprived,” he said.

    Mrs. Ahmed however commended President Muhammadu Buhari’ Administration for reducing the level of violence in the country.

    He noted, “the level of violence has been significantly scaled down but over 4.4 million people in the region need food, clothing and shelter. The Government of Nigeria has mobilised available resources to ameliorate the situation.

    Speaking on the report, she said it provided an independent and data-based analysis of why certain groups tend to be more disadvantaged and highlights the persistent barriers to achieving sustainable human development for all.

    She said it also came on the heels of the recently launched NERGP which she said would define the country’s economic trajectory for the next four years, by ensuring sustained, inclusive and diversified growth.

    “The Report comes as Nigeria works to actively implement programs aimed at meeting the Sustainable Development Goals, both at the Federal and State levels,” she said.

    The minister said Government was working proactively to address the current economic challenges facing the Nation, and to implement policies and programmes that promote human development.

    According to her the programmes would ensure that `no one is left behind’.

    “We will also strive to ensure that the disadvantaged communities receive the extra support they need. This includes those living in conflict affected areas, women and girls, and rural communities.

    “Government is striving to ensure that human development progress is more resilient to shocks, such as epidemics, economic challenges, conflicts.

    “This is being done through the development and implementation of sound policies and through social investment programmes,” she said

  • Statistician canvasses evaluation mechanism in FG’s economic recovery plan

    A statistician, Dr Olusanya Olubusoye, has advised the Federal Government to accompany the just inaugurated Economic Recovery and Growth Plan (ERGP) with basic monitoring and evaluation kits.

    Olubusoye, the second Vice-President, Nigerian Statistical Association (NSA), gave the advice in an interview with the News Agency of Nigeria (NAN) in Abuja on Monday.

    The ERGP’s projected that Nigeria will make significant progress to achieve structural economic change with a more diversified and inclusive economy in five key areas by 2020.

    The key areas are stable macro-economic environment, agricultural transformation, food security, sufficiency in energy and improved transportation infrastructure.

    He said that government should accompany the ERGP with basic monitoring and evaluation kits such as performance indicators, data collection framework and reporting schedule.

    “A simple illustration to use is the Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs), global plans of action.

    “Both of them were accompanied with achievable goals, quantifiable targets, performance indicators, data requirements and even reporting framework.

    “For instance, MDGs had 21 quantifiable targets and 60 indicators for tracking progress on the agenda while the current SDGs has 17 goals and 232 performance indicators.

    “So, the truth is that without practical indicators, goals remain purely aspirational and progress cannot be measured,” he said.

    Similarly, the official said reliable and timely data were needed for systematic follow-up and progress reviews.

    Olubusoye said that government should also look at the nature of the plan and review it.

    According to him, the plan is macro-centric rather than micro-centric in nature.

    “The plan emphasises more on economic aggregates, Gross Domestic Product, which hardly reflect the reality at the micro levels.

    “Individual is concerned with how the plan will translate to improved quality of life, more food on the table, affordable housing, affordable and accessible health facilities.

    “They are also looking at good water, safe and secured environment, quality education, basic infrastructure such as good roads, railway, among others.’’

    He, however, said that it was not clear how many people the plan would cater for.

    “By this, I mean the population figure used for the plan.

    “Nowhere in the plan is reference made to the current population size but quick to project 289 million by year 2050.

    “How realistic is the figure? Is the figure our own, or estimated, or ‘guesstimated’?

    “How many people are covered in the first year of implementation? How many will be covered in the second year and up to 2020?

    “What if the country is planning for more or for less people than it has now, Can such a plan be realistic?”

    The official said that the fundamental question with regards to the plan was the way it differed from the previous development plans.

    He said, “how is ERGP different from the previous plans such as the 1st – 4th National Development Plans, Structural Adjustment Programme, National Economic Empowerment And Development Strategy.

    “The other question: Is it different in concept, scope, goals, monitoring, evaluation, performance indicators, reporting schedule etc?”

    Olubusoye said that those were the important areas and gaps that the government needed to fill in the plan.

    “The solution is to fill the missing gaps in the plan and the basic thing is also to use data appropriately.

    “We don’t have regard for data in this country. How can you have good plan like this and you don’t have performance indicator?

    “You don’t have framework for collecting data that will help you to monitor progress and yet you don’t have reporting framework. How will the government be reporting to Nigerians on progress made,’’ he said. 

     

  • LCCI calls for faithful implementation of ERGP

    Mr. Muda Yusuf, the Director-General of Lagos Chamber of Commerce and Industry (LCCI), on Monday called for faithful implementation of the Economic Recovery and Growth Plan (ERGP).

    Yusuf told the News Agency of Nigeria (NAN) in Lagos that the plan would help to stop policy uncertainties.

    He said that the plan would also boost investors’ confidence in the economy as it had made clear the direction of the government.

    “You know that a number of Nigerians have complained that they did not know the economic direction of the government.

    “The Economy Recovery and Growth Plan has shown what the government policies are.

    “This will help to enhance the confidence of foreign and local investors.

    “Also the good thing about the plan is that foreign investors will be encouraged to bring in more funds into the country”.

    The LCCI boss said that the plan had a delivery unit to monitor its implementation.

    “We have had similar plans in the past, but implementation had always been the problem.

    “So, one good thing about the plan is the clear expression about its implementation,” he said.

    Yusuf advised government to ensure proper coordination of fiscal, monetary and trade policies as important elements of the plan.

    He expressed optimism that the plan would have positive effects on foreign exchange market and makes it market driven.

    “It is important and of interest to monitor how fast this can be delivered because it will bring normalcy to the foreign exchange management and also address challenges in the market”.

    Mr. Wale Adegbite, the Chairman of Ota Branch of Manufacturers Association of Nigeria (MAN), also urged that the plan should be well implemented.

    Adegbite said that nothing could be said yet about the plan until the implementation stage.

    He said that the era of non-implementation of policies had gone and called for full implementation for the success of the policy.

    “It is one thing to have a plan and another is to implement it.

    “It is only at the point of implementation that we can assess the policy.

    “At this stage, we can only urge the government to ensure that the policy achieved its target.

    “Like I said, they are all good intentions and they are all achievable once they put their minds into it,” Adegbite said.

     

  • Political risk threatens FG’s economic recovery plan – Expert

    An economist, Prof. Uche Uwaleke, on Thursday identified political risk as a major threat to the successful implementation of government Economic Recovery and Growth Plan (ERGP).

    Uwaleke, the Head of Banking and Finance, Nasarawa State University, made this known in an interview with the News Agency of Nigeria (NAN) in Abuja.

    “Indeed, numerous other vulnerabilities remain but the biggest threat to the ERGP, in my view, is the political risk that received no mention under the section.

    “Nigeria’s experience over the years has shown that implementation of development plans suffer neglect whenever there is a change in government.

    “The political will argument holds water only in the context of stability in government when the conceiver (the President) is in office throughout the Plan period.

    “This condition is necessary for the success of the National plan,’’ he said.

    According to Uwaleke, a review of key economic variables over the years indicated that the penultimate and ultimate election years affect economic performance.

    The economist said that government spending usually increased in an election year, adding that this usually fuels inflation rather than encourages growth.

    He said that in 2011 and 2015, Nigeria’s inflation rate increased due to high expenditure associated with the elections.

    The economist said that the forthcoming 2019 election posed a threat to the ERGP’s goal of subduing inflation to single digit level by 2020.

    He said that the success of the ERGP would depend not only on its implementation but also on the commitment of the succeeding administration to see it through to the terminal year.

    Uwaleke, however, suggested that the country needed an enabling law to back up the ERGP.

    He said, “The idea of setting up a Delivery Unit in the Presidency to assist the Ministry of Budget and National Planning in overseeing the ERGP implementation is good but not sufficient.

    “If the Delivery Unit is not a creation of the Law, it lacks the capacity to discharge its duties.

    “To this end, the Federal Government as a matter of urgency, should forward a Bill to be known as the ‘’Economic Recovery and Growth Bill’’ to the National Assembly.

    “The Bill should take care of all issues specific to the ERGP distinct from the current Fiscal Responsibility Act of 2007 which focuses on annual budgets and the three year Medium Term Expenditure Framework.

    “ The government has barely one more year to prove that the ERGP will not go the way of its forebears.

    “ One of the key deliverables of the Plan is to reduce petroleum product imports by 60 per cent in 2018.

    “Therefore, putting in place an enabling law and passing the Petroleum Industry Bill will safeguard the country against the major threat to the ERGP.

    NAN reports that the Federal Government recently unveiled the ERGP, which contained the road map for Nigeria’s economic development.

    The four-year plan (2017-2020) envisages that by 2020, ‘’Nigeria would have made significant progress towards achieving structural economic change with a more diversified and inclusive economy’’.

    According to the plan, real GDP would grow by 4.6 per cent on average over the plan period while inflation rate would move to single digit by 2020.

    The plan outlines initiatives such as boosting oil production to 2.5 million barrels per day by 2020, privatizing select public enterprises/assets and revamping local refineries to reduce petroleum product imports by 60 per cent by 2018.

    Following the implementation of the plan, unemployment would reduce from 13.9 per cent as of Q3 2016 to 11.23 per cent by 2020.

  • LCCI to CBN: Grant exporters free access to export proceeds

    LCCI to CBN: Grant exporters free access to export proceeds

    The Lagos Chamber of Commerce and Industry (LCCI) has called on the Central Bank of Nigeria (CBN) to review its foreign exchange policy that restricts exporters’ free access to their export proceeds.

    The Director-General, Mr Muda Yusuf, told the News Agency of Nigeria (NAN) on Tuesday in Lagos that the policy was detrimental to non-oil export and did not motivate exporters.

    “The Chamber has received several complaints from exporters about the adverse effects of current foreign exchange policy on export business.

    “The policy hurts exporters as it denies them of the natural advantage of increased profitability which a weak currency offers.

    “Indeed, many Asian economies deliberately devalue their currencies to stimulate their export sectors.

    “A major advantage of weak currency is the incentives it provides to exporters because the currency depreciation makes exports cheaper, boosts demand for exports, creates more business for exporters and improves profitability.

    “It also makes it possible for the export sector to create more jobs, contribute to recovery and growth of the economy.

    “But the foreign exchange policy has denied exporters this very important advantage as they are denied unfettered access to their export proceeds,” he said.

    According to him, the current regulation makes banks custodians of export proceed which they covert to local currency for exporters at official rate.

    “Given the free market premium of about 35 per cent, the policy represents a major disincentive to export business.

    “Yet export sector development is one of the major planks of the economic diversification programme of the present administration,” Yusuf said.

    The director-general said that the policy resulted in a decline in official declaration of export proceeds and led to sharp practices and corruption in export documentation processes.

    “This is a major shortcoming of the current foreign exchange policy of the CBN.

    “It does not augur well for the economy and not consistent with the objectives of the Economic Recovery and Growth Plan (ERGP),” he said.

    “Yusuf urged the CBN and the Economic Management Team to urgently review the policy and not impose conversion rates on exporters.

    “All forms of restrictions to foreign exchange inflows should be removed so that the supply side of the market can be positively impacted and reduce the current pressure on the Forex market.”

    Yusuf said that implementing this would complement recent efforts of CBN to ease the pressure on the foreign exchange market, strengthen the naira exchange rate, bolster foreign reserves and boost investors’ confidence.