The Nation Newspaper

Tag: Economic Recovery and Growth Plan

  • FG to create employment, reduce poverty via maintenance culture -Fashola

    The Federal Government has revealed that it will be creating long term employment and reducing the poverty rate in the country through the maintained of its public infrastructural assets.

    Minister of Power, Works and Housing, Babatunde Fashola stated that this administration is redeveloping and maintaining road networks in the six geopolitical zones in the country.

    He added that the government is also involved in the maintenance of all bridges on federal roads, rebuilding road networks in Federal Universities and building power stations in Federal Universities.

    Speaking yesterday in Abuja, at the quarterly lecture series organised by the National Institute for Cultural Orientation (NICO), Fashola who was represented by the Deputy Director Rehabilitation in the ministry, Arc. Augustine Ocheje said that a process is ongoing to amend procurement laws.

    He added that the major focus of the current administration happens to be the development of infrastructures in pursuit of the key objectives of the Economic Recovery and Growth Plan (ERGP).

    His words, “A mayor focus of the current administration happens to be the development of infrastructures in pursuit of one of the key objectives of its Economic Recovery and Growth Plan (ERGP). Accordingly, government has invested heavily on road infrastructures, airports, water resources. power, public buildings and housing etc.

    “At the same time, the government is concerned about protecting these investments and maintaining existing public infrastructure assets which are under performing as a result of inadequate maintenance and lack of coordinated approach to maintenance of public infrastructure. I believe most of us are aware of the enormity of infrastructure deficit inherited by this Administration.

    “Redevelopment and Maintenance of Road Network in the six (6) geopolitical zones in the country targeted at connecting state capitals as well as agricultural/economic activity centres;

    “Maintenance of all bridges on Federal roads in Nigeria, Rebuilding road networks in Federal Universities, Building of Power stations in Federal Universities and a process is on-going to amend procurement laws to encourage small businesses and entrepreneurs.

    “A maior focus of the current administration happens to be the development of infrastructures in pursuit of one of the key objectives of its Economic Recovery and Growth Plan (ERGP). Accordingly, government has invested heavily on road.

    Read also: Fashola: we can’t cover every road in Nigeria

    “I would like to emphasize that there is a direct link between infrastructure development, poverty reduction and employment creation. The maintenance of public infrastructural assets will create sustainable long-term employment and poverty reduction while the life span and functionality of public assets will be elongated and improved.”

    Acting Executive Secretary of NICO, Mr. Louis Eriomala stated that the lecture themed, ‘Maintenance culture: a panacea for sustainable infrastructural development in Nigeria’, was chosen considering the poor state of our nation’s infrastructural architecture.

    He said this has been largely due to the country’s poor maintenance culture as a people.

  • ‘Digital transformation key to economic development’

    To the Nigerian Communications Commission (NCC) Executive Vice Chairman, Prof Umar Garba Danbatta, for the country to take its rightful place, digital transformation should play a key role. In this interview with LUCAS AJANAKU, he speaks about Nigeria’s participation at the ITU Telecom World conference in South Africa, and strategies to drive investment in the country.

    The Nigeria Communication Commission (NCC) has been at the forefront of wooing foreign investors, especially in the telecoms sector. What is government doing to attract these investors through tax incentives?

    The Economic Recovery and Growth Plan (ERGP) document of the Federal Government clearly shows government’s willingness to create an enabling business environment for investors to thrive in Nigeria. For example, in the ERGP document, there is a pioneer status given to investors, who are coming in to invest in any sector of the economy, including the telecoms sector. The pioneer status incentive is 30 per cent, which means a reduction of Company Income Tax by as much as 30 per cent. This is in addition to other incentives like the relaxation of monetary policy of the government, access to foreign exchange, fiscal policy, reduction and waivers on custom duties, among others like the Executive Orders 5 and 6 of the ease of doing business.

    All these are measures put in place by the government to make business in Nigeria very easy and profitable for willing investors, and we at the NCC will continue to encourage investors to come to Nigeria and invest in the telecoms sector, and our efforts are beginning to yield good results. The telecoms space is big enough to accommodate more investors and we will continue to encourage Foreign Direct investments (FDI) in Nigeria.

    Last year, the NCC gave an update on telecoms investment in Nigeria, which was put at $70 billion. What is the contribution of the telecoms sector to Nigeria’s Gross Domestic Product (GDP)?

    I must make it clear that we get statistics about telecoms contribution to GDP from the National Bureau of Statistics (NBS).  The figure we gave last year about telecoms investment in the country was $70 billion, and the figure was what the NBS released as at last year. Although the bureau has not released statistics for this year, I can confidently say that the total telecoms investment in Nigeria has surpassed $70 billion. This is true, based on reliable information we have that telecoms investments, which include FDI and portfolio investment, has currently reached 10.5 per cent, up from 9.15 per cent in the previous year. The NBS quarterly report puts the contribution of telecoms to GDP at $5 billion per quarter, which is 2 per cent rise per quarter. This, of course, is a steady quarterly growth and when you calculate the four quarters in the last one year after the $70 billion figure was released, it becomes clear that telecoms contribution to GDP has surpassed $70 billion in the last one year, and this is a significant contribution to the Nigerian economy.

    In the last one year, Nigeria recorded a steady growth in voice and data services offering, including broadband penetration and all these put together in monetary terms, clearly shows the immense contribution of the telecoms sector to the Nigerian economy.

    What are some of the opportunities for additional foreign investors that may be interested in the nation’s telecoms sector?

    There are lots of opportunities for investors in the county’s digital transmission system including microwave, satellite and optic fibre, such as submarine cable communications, as well as digital exchanges for both wired and wireless lines. We also have investment opportunities in our billing systems and data communications networks, broadband and integrated service digital network (ISDN).

    Nigeria needed 120,000km metropolitan optic fibre coverage for ubiquitous network connections nationwide, but the country has only 38,000km coverage now, which I see as an investment opportunity beckoning on both foreign and local investors to take advantage of, and invest in the country.

    The NCC is intensely focused on bringing efficient, qualitative and affordable ICT platforms within the reach of individuals and corporate bodies through the implementation of our 8-point agenda, the Federal Government’s Economic Recovery and Growth Plan (ERGP) and the ICT Roadmap to drive synergies, which would expand opportunities for disruptive technology innovation and global competitiveness in Nigeria.

    What are some of the regulatory measures taken by the NCC to deepen broadband penetration in the country?

    Several regulatory measures have been put in place by the NCC to further grow broadband penetration in the country. The Commission had earlier assigned 2.3GHz licence to Bitflux Consortium and six of the 14 slots available on 2.6GHz to MTN Nigeria and two slots to Openskys, and six slots are still available for assignment.

    Nigeria had a mere five per cent broadband penetration in 2012, but now we have attained 22 per cent and hope to hit the 30 per cent recommended by National Broadband Plan by December 2018, through various initiatives, including granting subsidies to Infrastructure Companies (InfraCos) licencees, and for spectrum trading. In line with our initiatives to encourage investment for InfraCos’ roll out, the Commission created subsidy provisions in its 2017 and 2018 budgets for the InfraCos, which is expected to be disbursed by piecemeal to the InfraCos as the deployment of their infrastructure progresses. We have, however, assured all the licencees that the subsidy is based on the implementation and milestones of their rollout obligations

    As part of the flexible approach to regulatory management and constant stakeholders’ engagement, the Commission introduced spectrum trading only a few months ago. This is to enable holders of such spectrum that is not in use to transfer, lease or share such spectrum with those who may have a need for it.  We see this as a cutting edge regulatory initiative to safeguard the use of this scarce national resource. The NCC undertook these regulatory steps in line with the National Broadband Plan (NBP) of 2013-2018, where it is anticipated that 30 per cent broadband penetration will be attained by the end of 2018.

    At the opening ceremony of the ITU Telecom World 2018, the  South African President, Mr. Cyril Ramaphosa, highlighted three pillars on which his country is driving digital transformation. What are the strategies for Nigeria in driving its digital transformation?

    Yes, I heard clearly, the South African president’s speech at the opening ceremony of ITU Telecom World 2018 conference, when he listed the three pillars on which his country is driving digital transformation, to include Women, Youths and SMEs. The truth is that every county has its own strategy and I subscribe to the position of his Excellency, President Cyril Ramaphosa of South Africa on the country’s drive in digital transformation for a digital economy. The Nigerian strategy is similar to the South African strategy as enumerated by their president, but we have additional strategies beyond that of South Africa.

    In Nigeria, we have identified about five strategies of the digital ecosystem, but to successfully achieve these strategies in Nigeria, we need government enabling polices and the right institutions that will enhance digital transformation in Nigeria, because digital transformation is key to Nigeria’s development. As part of the Nigerian strategy for digital transformation, we have considered the youths, women and SMEs in our policy. In all of these, the role of the NCC in the digital transformation of the country is key and the NCC is currently giving access to telecommunication services in the underserved and unserved areas of the country, more so in a situation where only 50 per cent of Nigerian households have access to telecommunication services. Again, we are building the critical mass adoption and use of telecommunications services in order to achieve the right broadband internet penetration. We have a National Broadband Plan which the NCC is at the forefront of pushing it to ensure that we have a deeper broadband penetration for Nigeria. We have currently achieved 22 per cent broadband penetration in the country, which is above the minimum target of achieving 30 per cent broadband penetration, with plans to achieve the maximum target by the end of this year. So, the NCC is also targeting massive capacity building in schools and colleges, including tertiary institutions and communities outside the schools. The other aspect of the digital transformation for Nigeria is in the area of telecoms infrastructure. In order to boost the rollout of telecoms infrastructure across the country, we decided to zone the country into seven zones and licensed Infrastructure Companies (InfraCos) in all the seven zones. The role of the InfraCos is to provide broadband infrastructure that will facilitate faster rollout of broadband service across the country. All these initiatives are targeted at enhancing digital transformation in the country.

    Are there incentives that will motivate the InfraCos to roll out broadband infrastructure much faster?

    To ensure rapid rollout of broadband infrastructure across the country, the NCC provided some palliatives in the form of incentives for all InfraCos that are willing to roll out in rural communities, including underserved and unserved communities. Aside the incentives, the InfraCos licence was made very cheap to encourage InfraCos. The NCC is not interested in making money out of InfraCos, but to encourage them to roll out broadband infrastructure in all nooks and crannies of the country. Beyond women, youths and SMEs, we also have plans for the physically challenged persons and we give them opportunities to belong to the country’s digital transformation process.

    What is your view about government’s position on MTN, where the telecoms company was asked to return money it repatriated from the country between 2007 and 2015 and to pay tax arrears within the same period, totaling $10.134b?

    Government is an institution whose actions are guided by law. For example, the Central Bank of Nigeria (CBN), is a government institution which regulates the financial sector of the economy, while the Federal Inland Revenue Services is another government institution that regulates the tax sector of the economy and the Nigerian Communications Commission (NCC) regulates the telecoms sector of the Nigerian economy. What is happening between MTN and the Nigerian government is based of regulatory issues in their different sectors. Although the issue is currently centred on financial and tax regulation, but there are public fears and outcry that the action taken so far by the government could cause ripple effect on other sectors of the economy because telecommunications as it were, which is the core business of MTN, cuts across all sectors of the Nigerian economy. As telecoms regulator, we are aware that there is no sector of the Nigerian economy that does not enjoy the services of telecoms sector, and we are concerned about the current MTN issue with the government because MTN Nigeria is a licensed operator under the supervision of the NCC. But I will like to say that although the alleged breach is purely on financials and taxes, but the NCC as a regulator of the telecoms sector, is doing everything possible to ensure quick and amicable resolution of the matter. We are already intervening, just the same way we intervened in the previous matters concerning MTN Nigeria. As a regulator with human face, we will always provide guidance to all our licensed operators, both big and small, during crisis of any sort. MTN has been in touch with us over the recent matter and we have mapped out strategies to address the issue, which I will not like to divulge to the media at the moment.

  • Is Nigeria sliding back into recession?

    Widespread fears over the possibility of the country suffering economic depression soon after exiting recession has set concerned Nigerians on the edge, report Ibrahim Apekhade Yusuf and Charles Okonji

    It’s exactly a year since Nigeria was technically declared out of recession with assurances by the economic managers that efforts would be expedited to set the country on a growth trajectory aided in part by clearly defined economic recovery plan.

    Expectedly, the government Economic Recovery and Growth Plan (ERGP) was introduced just in time to get the economy back on an even keel.

    As proof that things may be in the upswing, the National Bureau of Statistics (NBS) in a release said the economy had exited recession as shown in the results of the second quarter of 2017 with a Gross Domestic Product (GDP) growth rate of 0.72 per cent.

    According to the release, the GDP growth rate rose to 1.17 per cent in the third quarter of 2017, 2.11 per cent in the fourth quarter of 2017 and 1.95 per cent in the first quarter of 2018.

    Interestingly, the projection of the International Monetary Fund that the economy would grow by 2.1 per cent by the end of 2018 was also lauded by the NBS as something achievable.

    Economic measures skirting around the issue

    It however remains to be seen if such plans have actually impacted the economy positively thus far as in view of concerns raised by economic watchers.

    In the opinion of those who hold the levers of the economy they are hardly convinced that things are in the clear. As far as they are concerned, the numbers don’t add up yet.

    In the view of Mr. Olusegun Oshinowo, Director General of Nigeria Employers’ Consultative Association, the economic uncertainties occasioned by lingering recession, led to a gale of job loss in the past few year, especially in the organised private sector.

    Specifically, he said, “The unemployment situation is worrisome. We have a youthful population, which ordinarily should be a demographic blessing but unfortunately has become an economic challenge in terms of providing gainful employment.”

    The NECA boss, who also serves as a Director of Nigerian-German Chemicals PLC including boards such as the Nigeria Social Insurance Trust Fund (NSITF), Nigeria Labour Advisory Council, National Pension Commission (PenCom), National Orientation Agency, and the National Health Insurance Scheme, lamented that there is quite a lot wrong with the system.

    “We are not yet there at all. If you are talking about green initiatives, you are talking about green jobs. The stage we are now really, going by the statistics the NBS released recently, almost about 12.2million Nigerians are unemployed. I can tell you that is quite conservative, very, very conservative. In fact, I won’t believe it because if 75 per cent of our populations are youths and you apply the unemployment rate in Nigeria to that youthful hands in our demographic profile, the figure you will get, will be far more than 12.2million. Now, if you want to promote a green job initiative, the issue is that, when you look at the environment in Nigeria, what type of job is the Nigerian economy capable of producing now.

    “We have got to be really honest with ourselves; there is nothing near in the economy of green jobs. Our priority actually is to make our economy grow to a level where it can generate jobs for millions of our youths. Our youths are not looking for big jobs. They are looking for the jobs or perhaps any job for that matter, to be engaged in. I am saying in the context of Nigeria given the scale of unemployment we are in, what we are interested in really is, are good jobs for our youths. The next level of that engagement can now be whether those jobs are green or not. But let us engage them productively first,” he said matter-of-factly.

    Echoing similar sentiments, the former director general to Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr. John Isemede, stated that the country cannot be said to have exited recession with the figures being released for the economic performance of the first quarter (Q1), which recorded growth of 1.95 percent, and the second quarter (Q2) is 1.5 percent.

    Isemede said; “This is an indication that Nigeria is not fully out of recession, and would likely go into depression this time around, if right recovery policies are not put in place and properly managed.”

    The real sector, he observed, “is still wrestling with serious productivity challenges arising from the constraint of infrastructure, particularly power and logistics. It is imperative that efforts are geared towards investment and policies focusing on improving logistics and enhancing the power sector. The manufacturing sector also slowed from 3.39 percent in Q1 to 0.68 percent in Q2 as result massive of infrastructural deficit, and logistic challenges, the Apapa gridlock, access and cost of credit, weak purchasing power and multiple taxation, amongst others.”

    The Chairman, Policy Committee of MAN, who was also the former Chairman of Electrical Group of MAN, Engineer Reginald Odiah, noted that the country is not completely out of recession, but just lucky that more money is generated through the sale of crude oil.

    In the opinion of Dr. Austin Nweze, political economist and faculty member of the Pan Atlantic University, Lagos said, “Everything happening now is artificial. It’s just some kind of manipulation to pretend that all is well. All is not well politically, economically and socially in every facet of Nigerian life. Even the National Bureau of Statistics (NBS) also came out to support what myself and some other people have been saying that unless there is a change of policy the recession will linger on till 2018 unless we begin to do something that will drive domestic production. So we really need to look at that. Recession, as I said will go hopefully towards the end of 2018 or early 2019. Recession does not just happen and it’s not something that’ll just go by wishing it away. You have to make deliberate efforts.

    There’s even a global projection or prediction that by 2018, there will be another round of recession which will further compound Nigeria’s recession. So there’s a problem. If anyone tells you recession is over or simply tries to wish it away, it’s impossible to wish such things away.

    Way forward

    To many analysts, the way out is to begin to invest inwards by looking at domestic production, job creation among other measures.

    “Our focus should be on job creation and not job loss because most of the factors important for job creation will stem job loss. The supply of labour into the economy has far outstripped demand. The problems are double faced: quantity and quality. Given the scope of the problem, we require a multi- pronged approach/solution that will include promotion of sustainable enterprises through an enabling business environment, sustainable and pervasive good governance at all levels of government, effective and job-focused macro-economic policy framework, political restructuring that will lead to creation of multiple productive and economic centres, educational reform to enthrone functionality as against literacy, indigenous employment-supportive immigration policy, comparative advantage-based backward and forward integration. This is the long term solution to our unemployment malaise,” said Oshinowo.

    “As far as I’m concerned, the exchange rate crisis will still be there no matter how they try to manipulate it. The government needs to take advantage of the situation by encouraging domestic production,” Nweze said.

  • FG teams up with AfDB to tackle unemployment

    The Federal Government has partnered the Africa Development Bank (AfDB) to reduce unemployment in the country.

    The government said it plans to engage stakeholders and the AfDB in a round table discussion on youth employment and skills development.

    Minister of Labour and Employment, Dr Chris Ngige, disclosed this at the inauguration of the multi-sectoral task team on public-private roundtable on youth employment and skills development on Tuesday in Abuja.

    Dr. Ngige, who was represented by the Minister of State, Prof. Stephen Ocheni, said the round table would have a rich private sector participation due to the widely acknowledged higher potentials for job creation by the sector.

    He said: “The Federal Government, in continued efforts to respond to the unacceptable situation and reverse trend, has therefore, entered into partnership with the African Development Bank Group to engage a broad-spectrum of stakeholders in a Roundtable discussion on Youth Employment and Skills Development in Nigeria.

    “The work of the team would key into the aspiration of the Economic Recovery and Growth Plan (ERGP) of the present administration and also boost the rate of attainment of the relevant Sustainable Development Goals in the country.”

    The minister said Nigeria was yet to harness its population potential through productive engagement.

    The Senior Director for the AfDB, Ebrima Faal, said only 77.55 million of Nigeria’s 85.08 million labour force are engaged in some sort of economic activity.

    Read Also: AfDB, partners hold investment parley

    Represented by, Abdullahi Imoru, he said: “Of the 85.08 million of Nigeria’s Labour force, 77.55 million are engaged in some sort of economic activity. This leaves out 7.53 million people doing absolutely nothing (NBS report).

    “Nigeria has to realize the potential of its youths, create jobs for them or support them to create jobs for themselves; hence the critical importance of entrepreneurship. Hence the key role of the private sector.

    “In 2016, The AfDB adopted a Job for Youth in Africa Strategy, with the goal to create 25 million jobs and equip 15 million youth in Africa with employable skills in ten years.  From 2016 to date, the Bank has invested over $400 million in both public and private operations that will promote jobs for the youth in the country”

    The Permanent Secretary of the ministry, Mrs. Ibukun Odusote said: “Although the Federal Ministry of Labour has the mandate to create the enabling environment and coordinate activities on job creation and skills development in the country, we recognize the fact that employment matters are cross cutting in all the sector of the economy.”

     

  • Osinbajo, Saraki, Dogara assure Investors on Economy, Capital Market

    The international community and investors have been assured of the current regime’s commitment towards continued implementation of strategies and policies towards achieving economic development.

    The Vice President Yemi Osinbajo gave the assurance on Monday while speaking in Abuja at the 2nd capital market stakeholders’ forum organised by Senate and House of Representatives Committees on capital market and institutions in collaboration with Securities and Exchange Commission and other stakeholders.

    According to him, some of the initiatives include: Economic Recovery and Growth Plan (ERGP), unprecedented investments in capital projects in the past three years, tax incentives and the Ease of Doing Business.

    Osinbajo who was represented by Patience Oniha, Director General, Debt Management Office said the strategies and policies are aimed at attracting “investors into various sectors of the Nigerian economy with the aim of growing and diversifying the economy, creating jobs and improving the quality of life.”

    While also noting the importance of Nigerian capital market in the attainment of these objectives, he said:

    “Financial markets are known to be engines of growth because of the strategic role they play in the flow of funds to businesses and governments. There is extensive literature on the fact that there is a strong positive correlation between the level of development of the financial system and economic development, for the simple reason that financial markets act as intermediaries between lenders and borrowers.

    Read Also: Buhari, Osinbajo, Saraki, APC governors meet in Aso Villa

    “While this correlation is certainly the case for the advanced market economies, the same cannot be said for Nigerian capital market in the areas of legislations, regulations, technology and products amongst others which have attracted local and foreign investors to the market and I would like to commend the regulators and operators alike for these achievements.”

    Osinbajo further noted  “There is however, room for innovation, increased depth and efficiency of the capital market and this represents an opportune time for these to begin to occur in anticipation of increased and more sophisticated demand for capital market products,”

    He also tasked the stakeholders to come up with “creative ways for enabling small and medium businesses to access capital will also be considered as they have a great potential for growth, job creation and effective source of local resources.”

    The President of the Senate, Bukola Saraki in his speech presented by Senator Philip Aduda said the Capital market, can be a catalyst for development

    “The role of the capital market, and the institutions integral to it, must be emboldened to drive development in the private sector. This means that the fiscal, advisory and empowerment responsibility of our financial institutions will be called on now, more than ever, in entrenching economic policies that will elicit development in the Micro, Small and Medium Enterprises (MSMEs) in the country.

    “I have always maintained that the role of the National Assembly is to give the right platform for all sectors of the economy to thrive. The platform to grow businesses, to draw foreign investments into the country, to sustain meaningful and mutually beneficial investments via bilateral and multilateral instruments. This is our law making responsibility for the economy,” Saraki said.

    In his remarks, Speaker Yakubu Dogara re- echoed the commitment of the National Assembly to the development of the capital market, adding that that the parliament has so far delivered some of the legislative actions enunciated in the communique issued at the maiden capital market stakeholders’ forum held in June, 2016.

    Represented  by Majority Deputy Chief Whip, Pally Iriase, he said: “it is instructive to note that the National Assembly has recorded relevant milestones that is expected to drive the operations of Nigeria’s capital market.

    “These include: passage of demutualisation bill, ongoing amendment of CAMA Act, public hearing held on the amendment of relevant sections of Investment and Securities Act, 2007; review of the Warehouse receipts and other related bills; arbitration and conciliation bill; ports and harbour bill; Nigerian Roads Fund bill; CISI bill; Railway bill;

    He noted there were other legislative intervention through public hearings on ‘downward trend of the capital market’, bonds, securities and private placement and other related bill” currently receiving attention at the National Assembly.

  • BudgIT knocks NASS

    Says 6, 529 new projects difficult to track, monitor

     

    About 6, 529 new projects valued at N579.08 bn inserted into the 2018 budget by the National Assembly will be difficult to tract and monitor, a civic technology organisation, BudgIT, has said.

    The organisation, in a statement issued by its Communications Lead, Abiola Afolabi, in Abuja on Tuesday, said the projects may derail the Economic Recovery and Growth Plan (ERGP).

    The statement described the new projects as “opaque items with little or no bearing on the economy.”

    She said the projects could not be directly linked to the written, medium-term aspirations of the Federal Government as highlighted in the ERGP.

    Mrs. Afolabi said the organisation’s analysis showed that out of the 6529 new projects entered into the budget, 90.6 percent or 5918 items had a unit value below N200m.

    The statement reads: “An analysis of the inserted projects shows that N63.64bn or approximately 11% of the new projects added by the National Assembly will be spent on various training and capacity building programmes in 2018.

    “Given that the budget will be largely funded by borrowings (as highlighted in the 2018 fiscal plan), it is disheartening to discover that most of the identified line items therein show a significant disconnect from the developmental goals of government, as stated in its Economic Recovery and Growth Plan (ERGP).

    Read Also: BudgIT hails NNPC on plan to reduce gas flaring

    “We are alarmed at the number of micro-projects added by the National Assembly that may not fall within the core scope of the Federal Government.

    “We also noticed that the new projects inserted into the budget are fragmented, and budget line items are accompanied with vague descriptions that will prove difficult to monitor or track in physical and auditing terms.

    “It is equally essential for the National assembly to explain the rationale behind the increased allocations to itself as such cannot be justified given the abysmal distribution to the education and health sector, considering that National Assembly increased its budgetary allocation from N125bn to N139.5bn.

    “We also observed that projects valued at N13.16bn were cancelled altogether without detailed explanation by the national assembly. Some of the critical projects removed from the 2018 budget included  N200.3m meant to settle arrears under the national telephony programme, N100 million allocated for the Establishment of an ICT university and the N1.2bn allocated under the proposed budget for the construction of the  Zauro polder irrigation project.

    “Equally shocking is the fact that allocation to over 4,621 projects were reduced by approximately  N318.89 bn without citations.

    “BudgIT welcomes the addition of N55.15bn to the health sector under the  National Health Act. While the amount falls short of the 1% consolidated revenue fund ( above N70bn), we see the allocation as the critical starting point and urge Nigerians and critical stakeholders to monitor its implementation.

    “Overall, we believe that the 2018 budget will need proper interrogation from all stakeholders. It is also essential for the National Assembly and Executive to significantly reduce the administrative component of the budget and direct funds towards improving education, health and other critical infrastructure.

    “We also believe that there will be a more in-depth interrogation of the extent of the powers of the National Assembly and how such powers are exercised with great responsibility.”

  • NACCIMA restates commitment to ERGP

    The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has said it is committed to the Federal Government’s Economic Recovery and Growth Plan (ERGP).

    The chamber, which made this known at its Annual Conference in Kano, during the week, to address pertinent  issues  confronting the Organised Private Sector (OPS), also called for an inclusive growth that would positively impact on the lives of the masses.

    President Muhammadu Buhari was represented at the conference by the Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah. It was also attended by  Kano State Governor Alhaji Umar Ganduje.

    Buhari praised NACCIMA’s role on the development of the economy. He called on the OPS to take advantage of the enabling environment created by his administration for the private sector to thrive.

    The Senior Special Assistant to the President on ERGP, Dr. Effiong Essien, pointed out that the various policies under the ERGP were impacting positively on Nigerians.

    He said the government’s focus  was on attracting investments in agriculture, transportation, manufacturing and processing, as well as power and gas.

    He said the ERGP FOCUS Lab was created to help achieve the goals and advised members of the OPS to embrace the ERGP.

    In the communiqué after the conference, the association recommended that the ERGP Focus Lab be replicated in the six geo-political zones of the country to encourage better participation by businesses especially Small and Medium Enterprises (SMEs).

    The Association also reiterated the need for government to continue to create the enabling environment through the provision of infrastructure, implementing consistent monetary and fiscal policies in order to provide the real sector with an enabling environment and

    opportunities to thrive.

    The Emir of Kano, Muhammadu Sanusi 11, commended the leadership position of NACCIMA and its role in ensuring that all its affiliate chambers are actively involved in the development of the economy in their respective states and the nation as a whole.

    He said this when the NACCIMA President, Iyalode Alaba Lawson and her team visited his palace.

  • Nigeria growth plan: Idu Industrial Park ready soon

    As part of plans to revive the Nigerian economy and position it for global competition, the Federal Capital Territory Administration (FCTA) has assured investors of its determination to ensure early completion of the Industrial Park phase 2 at Idu and make it ready for use by local and foreign investors.

    The FCT Minister, Malam Muhammad Bello gave the assurance at the FCT Day of Economic Recovery and Growth Plan (ERGP) Focus Labs holding at the Abuja Sheraton Hotel.

    The FCT Administration team comprising the Permanent Secretary, Mr. Christian Ohaa, Executive Secretary FCDA Engr. Umar Gambo Jibrin, Chief of Staff Bashir Maibornu and other relevant top functionaries held direct talks with investors in order to address any inter-agency problems that could hinder investment in the Territory.

    According to a statement issued by the Minister’s Special Assistant Media, Abubakar Sani, top among the investors is Zeberced, a Turkish investment giant that is presently constructing the second phase of the Idu Industrial Park.

    The 245-hectare Park is expected to provide over 170 industrial plots of land for various categories of investors from manufacturing to retail marketing as well as create thousands of jobs.

    The discussions identified the uncompleted access road to the Park as a major hindrance to prospective investors. The FCT Minister and the State Minister for Budget and National Planning, Zainab Ahmed, agreed to work together to mobilise funding for the completion of the road.

    The collaboration and understanding achieved between Zeberced and the two Minsters also paved way for the resolution of issues concerning other investors who made presentations at the Lab.

    Major investors in World Health Organization certified Pharmaceutical manufacturing, Liquefied Petroleum Gas and footwear manufacturing, who all sought for land allocation to set up their industries, were all linked up with the industrial park developer for location of their businesses.

    The FCT Minister also directed the Abuja Investment Company to facilitate all the linkages and ensure that investors who have also expressed interest in the Abuja Technology Village (ATV) were also provided with necessary support and guidance.

    The ERGP Focus Labs being organized by the Ministry of Budget and National Planning aims at achieving three cardinal goals namely: restore growth in the economy to a positive path and sustain it to, at least, 7% by 2020; invest in the Nigerian people and improve their living standards as well as build an economy that is globally competitive.

  • Osinbajo warns board members against corruption 

    Vice President Yemi Osinbajo on Tuesday warned new board members against corrupt practices in their assignments.

    He spoke through the Secretary to the Government of the Federation (SGF), Boss Mustapha, while inaugurating boards of agencies under his office supervision.

    The boards inaugurated on Tuesday included the National Institute for Policy and Strategic Studies (NIPSS), National Boundary Commission (NBC) and Border Communities Development Agency (BCDA).

    Harping on government’s determination to win the battle against corruption, Osinbajo urged the new chairmen and members to totally eschew corruption.

    He said “Let me at this point reiterate the determination of this administration to succeed in the fight against corruption. In carrying out your responsibility as Board Members, you must therefore eschew corruption totally as Government will not hesitate to sanction all infractions.”

    He also urged the new board members to focus on economic development and revive the country from recession.

    Osinbajo also charged them to key into the Economic Recovery and Growth Plan of the Federal Government.

    He said “Nigeria has over the last 24 to 36 months, passed through a period of economic recession which necessitated the development of a home grown Economic Recovery and Growth Plan.

    “Which you are expected to key into, in view of the importance of your institutions to national economic stability.

    “I therefore expect robust policies initiatives from you as members of the board being inaugurated today,” the Vice President said.

    The management of the various organisations under the boards, he said, should be allowed to perform their duties without any interference from the board.

    The Speaker of the House of Representatives, Yakubu Dogara, who was represented by Femi Gbajabiamila observed that the board was critical to national development.

    “There is a lot of work to be done and I believe you will do a wonderful job.” he said

    The Chairman of NIPSS Board, Ignatius Longjan, who spoke on behalf of the members promised to be diligent in their studies.

    He said “In this national assignment given to yes, we will do it diligently and appropriately, we will not let you down.

    “We will carry out these assignments to the best of our ability, whatever will make Nigeria better, we will do it,” he added

    While Vice President Yemi Osinbajo is the Chairman of National Boundary Commission (NBC) and Border Community Development Agency (BCDA) Boards, Ignatius Longjan is the Chairman for NIPSS.

    Read Also: Osinbajo: Buhari administration is building a bright future for the youths

  • FG projects N141b from mining by 2020

    According to the recently launched ‘Economic Recovery and Growth Plan (2017-2020)’, the Federal Government projects a sectoral contribution of N141 billion from Minerals and Metals to the GDP.

    This will be an increased contribution to the GDP, from N103 billion in 2015 to N141 billion in 2020, at an average annual growth rate of 8.54%.

    Minister of Mines and Steel Development, Dr Kayode Fayemi made this revelation yesterday in Abuja, at the inauguration of the newly constituted Boards of agencies and parastatals.

    Fayemi also stated that other targets for the sector includes the facilitation of Coal to Power Plants to contribute to our energy mix towards bridging the energy deficits.

    His words, “The Mining sector remains crucial as one of the frontiers of the Federal Government’s recently launched ‘Economic Recovery & Growth Plan (2017-2020)’, in which the Minerals and Metals sector was duly recognised as one of those to drive Nigeria’s recovery. The strategic document projected to grow sectoral contribution to GDP from N103 billion (2015) to N141 billion in 2020, at an average annual growth rate of 8.54%.

    “Consequently, the Ministry has been selected as one of the critical players in the ERGP Focus Labs about to be launched by Mr. President this week.

    “Other targets for the sector include the facilitation of Coal to Power Plants to contribute to our energy mix towards bridging our energy deficits; the production of geological maps of the entire country by 2020 on a scale of 1:100,000; as well as the sustainable integration of artisanal miners into the formal sector.

    “Moreover, we are being guided by other far reaching prescriptions contained in our ‘Roadmap for the Growth and Development of the Mining Industry’, which was approved in August, 2016 by the Federal Executive Council, which provides a pathway for the sustainable turnaround and growth of the mining and metals sector over the short, medium, and long term. As you may well know, Institutional Strengthening and effective sector governance is one of the major themes that run through our roadmap.

    “It is therefore noteworthy that this inauguration is coming at a time we have commenced the full operationalisation of the Roadmap, as well as the implementation of the World Bank supported Mineral Diversification Project. We therefore count on the patriotic service of the new Board members to play their own part as crucial enablers in the industry, towards advancing a common vision for the revitalization of the sector.”

    Fifty three members were inaugurated into the Nigerian Geological Survey Agency (NGSA), National Steel Raw materials Exploration Agency (NSRMEA), National Metallurgical Development Center (NMDC) and Council of Nigerian Mining Engineers and Geoscientists (COMEG), including four board chairmen.