Tag: the National Economic Council (NEC)

  • Good twin-track

    Good twin-track

    New textile policy and livestock development plan are viable paths to re-industrialisation

    From the National Economic Council (NEC) has come a double-whammy that could well drive our much-needed re-industrialisation: the Cotton, Textile and Garment Development Board and the Nigeria Livestock Growth Acceleration Strategy.

    Actually, there was also a third leg: the Green Imperative Project (GIP), which focus is food security, via mechanised farming; as the garment/livestock policy is adding value to crop and animal farming to fire re-industrialisation.  The three are excellent proposals, begging for excellent execution.

    Vice President Kashim Shettima, who chairs NEC, which has as members all the state governors, captured the exciting policies with rather apt words: “Our goal is not just regulation,” he enthused. “It is a revival.  This is our opportunity to re-industrialise, to empower communities, and to restore pride in local production.”

    Well put!  But the government must walk its talk.  Indeed, it’s “condemned” to walking its talk, if it must provide jobs for the thundering numbers of jobless youths; and avert a social time bomb from mass poverty and unrealised expectations.

    The Cotton, Textiles and Garment Board policy alone is expected to unlock some US$ 90 billion to the local economy in value, by 2035 — that’s over the next 10 years. Textiles was a great employer of labour here.  So, we await the specific policy tactics the government is putting forward to realise this goal, and return to glorious old days. 

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    This is more so when this is not the first textiles revamp policy intervention by the Federal Government.  There was one under President Olusegun Obasanjo, which really did not make much mark.  Whatever worked against that must be x-rayed and factored into this new plan.  Otherwise, 2035 might just be another mirage, after the initial excitement.

    But the funding strategy for the Cotton Textiles and Garment Board — the Textile Import Levy, which the Nigeria Customs Service (NCS) collects — is brilliant.  Let those who do free textiles imports today fund Nigeria’s future textiles self-sufficiency!  Still, the government must secure that fund by ensuring zero-sleaze by NCS collection agents.

    The government must also address the basics — mass cultivation of cotton nation-wide.  If indeed cotton can grow in 34 of Nigeria’s 36 states, then the country has no business just growing 13, 000 metric tons yearly.  The cotton board should partner the Bank of Agriculture to develop special credit packages to boost cotton production.

    The Nigeria Livestock Growth Acceleration Strategy, which NEC also endorsed, is no less critical and strategic.  This newly tweaked policy, by the new Federal Ministry of Livestock Development, is under the aegis of the old National Livestock Transformation Plan (2018-2028), which the Buhari Presidency had put in place.

    For too long, the livestock value chain had laboured under the hysteria of “Fulani herdsmen” — a media blanket that references notorious herder criminals as the entire legitimate animal husbandry trade. 

    So, it’s high time livestock, a vibrant sector in which every part of the country can invest, regained its job-creating, revenue-generating and export-focused essence.  It’s all about adding agricultural value on the livestock front. To achieve this goal, however, ranching is critical.  That should, with time, eliminate farmer-herder clashes.

    But while re-industrialisation is excellent policy goal, food security in the instant is even more pressing.  Which is why the impending formal launch of the National Agribusiness Policy Mechanism, under which GIP is anchored, makes eminent sense.

    Cleared of all policy jargons, it means a positive policy aggression to return food production, and security against hunger, to the front burner where it belongs.  High food inflation is still a sad reality; and local rice activism of the Muhammadu Buhari years appears waning, with the influx of foreign rice, with suspect nutritional value compared with local rice.

    More worrying: price of local rice is rising.  But local production of food, in vast quantity and ready quality, holds the key to food security and eventual economic development and prosperity.  GIP must tackle these rising food crises — and fast too.

    Whatever happens on this tri-agricultural policy front must be done in close attention to fixing electricity.  Again — and this is worth restating: re-industrialising, with the current power reality, remains a pipe dream.

  • NEC okays $90b agribusiness, livestock strategy

    NEC okays $90b agribusiness, livestock strategy

    The National Economic Council (NEC) yesterday approved far-reaching initiatives projected to unlock up to $90 billion in value by 2035.

    At its 149th meeting, chaired by Vice President Kashim Shettima at the Presidential Villa, NEC endorsed the establishment of a Cotton, Textile and Garment Development Board.

    It unveiled a comprehensive agribusiness and livestock development plan.

    In a statement by Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, Shettima said: “The nation is watching. Our citizens are not waiting for another speech. They are waiting for results”.

    The newly approved Cotton, Textile and Garment Development Board is aimed at reviving an industry that once formed the backbone of Nigeria’s economy.

    With representation from all six geopolitical zones, key federal ministries, and a strong private sector presence, the board will be domiciled in the Presidency and funded through the Textile Import Levy collected by the Nigeria Customs Service.

    “Our goal is not just regulation. It is a revival. This is our opportunity to re-industrialise, to empower communities, and to restore pride in local production,” Shettima said.

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    He noted that while cotton can grow in 34 states, Nigeria currently produces only 13,000 metric tons, forcing the country to rely heavily on textile imports.

    The board is expected to reverse this trend and reposition Nigeria as a textile manufacturing hub.

    Council also approved the establishment of the Green Imperative Project (GIP) national office in Abuja and six regional offices to support agricultural mechanisation and food production across the country.

    This is to be complemented by the formal launch of the National Agribusiness Policy Mechanism.

    A highlight of the meeting was the endorsement of the Nigeria Livestock Growth Acceleration Strategy, presented by the newly created Federal Ministry of Livestock Development.

    Built upon the 2018–2028 National Livestock Transformation Plan, the refined strategy sets out to transform the livestock sector into a job-creating, revenue-generating and export-driven industry.

    The strategy, developed in collaboration with sub-national governments and the private sector, will focus on five key areas between 2025 and 2026: animal health and zoonoses control, feed and fodder development, water resource management, statistics and information systems, and breed improvement.

    The Council also endorsed a proposed transfer of N100 billion to the Federal Ministry of Livestock Development and urged states to establish their ministries to drive livestock reforms.

    The goal is to transform Nigeria into a major red meat exporter to markets in the Middle East and Asia.

    Minister of Education presented a strategy to equip five million young Nigerians with income-generating and entrepreneurial skills by 2030 through the Technical and Vocational Education Training (TVET) initiative.

    The programme aims to standardise and accredit training across the country, backed by a robust governance structure and sustainable funding.

    The Council was also briefed on the nation’s financial position.

    The Accountant-General of the Federation reported the following balances as of April: Excess Crude Account (ECA) stands at $473,754.57; Stabilisation Account at N63.5 billion; and the Natural Resources Development Account at N72.9 billion.

    Shettima called for a field visit by the NEC Implementation Monitoring Committee to bridge the gap between policy and performance.

    He said: “Our people do not evaluate us by the elegance of our policies, but by the evidence of their impact.

    “Let us rise above partisan interests and regional divisions and focus on what truly matters—building a nation that delivers for all.”

  • NEC approves $90bn agribusiness, livestock strategy

    NEC approves $90bn agribusiness, livestock strategy

    To reposition the economy and address root causes of insecurity, the National Economic Council (NEC) has approved far-reaching initiatives projected to unlock up to $90 billion in value by 2035. 

    At its 149th meeting chaired by Vice President Kashim Shettima at the Presidential Villa, NEC endorsed the establishment of a Cotton, Textile and Garment Development Board with a comprehensive agribusiness and livestock development plan.

    The Council, which includes Governors, the Central Bank Governor, the Minister of Finance, and other top government officials, observed a minute of silence in honour of the victims of recent attacks in Benue and Plateau States, reaffirming its commitment to restoring peace and security nationwide.

    Shettima described NEC as “architects of a sustainable future” and not merely responders to crises. 

    He urged Council members to rise above rhetoric and focus on delivering real outcomes.

    In a statement by Senior Special Assistant to the President on Media and Communications Office of the Vice President Stanley Nkwocha, Shettima said: “The nation is watching. Our citizens are not waiting for another speech. They are waiting for results”.

    The newly approved Cotton, Textile and Garment Development Board is aimed at reviving an industry that once formed the backbone of Nigeria’s economy. 

    With representation from all six geopolitical zones, key federal ministries, and a strong private sector presence, the Board will be domiciled in the Presidency and funded through the Textile Import Levy collected by the Nigeria Customs Service.

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    “Our goal is not just regulation. It is a revival. This is our opportunity to re-industrialise, to empower communities, and to restore pride in local production,” Shettima declared. 

    He noted while cotton can grow in 34 States, Nigeria produces only 13,000 metric tons, forcing the country to rely heavily on textile imports. 

    The new Board is expected to reverse this trend and reposition Nigeria as a textile manufacturing hub.

    The Council also approved the establishment of the Green Imperative Project (GIP) national office in Abuja and six regional offices to support agricultural mechanisation and food production across the country. 

    This is to be complemented by the formal launch of the National Agribusiness Policy Mechanism.

    The Vice President emphasised the need to build “a national food economy that is inclusive, efficient and sustainable,” stressing that such efforts will address both food security and economic empowerment.

    Another major highlight of the meeting was the endorsement of the Nigeria Livestock Growth Acceleration Strategy, presented by the newly created Federal Ministry of Livestock Development. 

    Built upon the 2018–2028 National Livestock Transformation Plan, the refined strategy sets out to transform the livestock sector into a job-creating, revenue-generating and export-driven industry.

    The strategy, developed in collaboration with sub-national governments and the private sector, will focus on five key areas between 2025 and 2026: Animal Health and Zoonoses Control, Feed and Fodder Development, Water Resource Management, Statistics and Information Systems, and Breed Improvement.

    The Council also endorsed a proposed transfer of N100 billion in previously approved resources to the Federal Ministry of Livestock Development, and encouraged states to establish their own ministries to drive livestock reforms locally. 

    The goal, officials said, is to transform Nigeria into a major red meat exporter to markets in the Middle East and Asia.

    In another significant development, the Minister of Education presented a strategy to equip five million young Nigerians with income-generating and entrepreneurial skills by 2030 through the Technical and Vocational Education Training (TVET) initiative. 

    The programme aims to standardise and accredit training across the country, backed by a robust governance structure and sustainable funding.

    Council members lauded the initiative and urged state governments to fully engage with the programme, regardless of political affiliation. 

  • Five Takeaways from Tax Reform Bills

    Five Takeaways from Tax Reform Bills

    By Opeyemi Bamidele

    Nigeria is on the cusp of transiting from the archaic tax regime that has been retarding its collective prosperity to a progressive alternative that places businesses and people at the core of its general principles. But this transition has elicited highly spirited debates at the National Economic Council (NEC) and the National Assembly. Again, for me, the degree of debates the Tax Reform Bills, 2024 has generated in the last fortnight or thereabouts obviously attests to Nigeria’s democratic resilience. Its intensity also does not in any way indicate any crack or division in the Parliament or in the NEC. Rather, it clearly represents a high mark of dispassionate interests that nearly all political actors have shown in building an economy insulated from external shocks and a federation that works efficiently for all. For this reason, I sincerely appreciate all the inputs into the process of reinventing the country’s tax regime for the fiscal repositioning of Nigeria.

     But are the Tax Reform Bills truly regressive or antithetical to people’s aspirations, as some state governments have claimed? This is no doubt an indispensable question that every Nigerian – educated or uneducated, employed or unemployed, poor or rich – ought to seek an empirical answer to. However, the tax proposals should be understood from the lens of our country’s socio-economic and political standing. First, Nigeria is a 64-year old federation with an economy heavily dependent on petroleum rents, royalties and taxes. Undue reliance on oil revenue has infested her with the Dutch disease that stunted the growth of her non-extractive sector until recently. Also, despite its oil wealth, the country’s economic indicators have been bleak and disappointing since the January 1966 military takeover. As shown in diverse reports of the National Bureau of Statistics, this discontent is more evident in 33.88% inflation; escalating exchange rates; abysmal economic growth rate; 63% multidimensional poverty index and declining investment inflows. Likewise, the country’s tax revenue to gross domestic product (GDP) slid to 9.4% in 2023, and the debt-revenue ratio was as horrible as  97% when the current government came on board. However, the latter has significantly shrunk to 65% within the last 18 months.

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    Since the last democratic transition in May 2023, these are grim realities that we have been contending with or have to contend with not just as a government sworn in “to pursue the greatest amount of good for the greatest number of people,” but as a people hungrily desirous of speedy socio-economic breakthrough. We are not supposed to play politics with such issues of significant public interest or prioritise parochial interests above people’s welfare. Rather, we are under the obligation to address these stark socio-economic realities in the overall interest of our people with creative and innovative legislative proposals that can rejuvenate productive activities nationwide and take away undue burden off the shoulders of the masses and business owners.

    This is exactly the intent of the Tax Reform Bills, a set of four legislative initiatives that recently scaled the second reading and are now before the Senate Committee on Finance for wider stakeholders’ engagement. Creatively designed to empower Nigerians across all strata and boost the country’s economic growth, the bills comprise the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Tax Administration Bill, 2024 and Nigeria Tax Bill, 2024.

  • Govt gives nine-month ultimatum to deposit dollars, others in banks

    Govt gives nine-month ultimatum to deposit dollars, others in banks

    Do you have foreign currencies, especially dollars, outside the banking system?

    If yes, you have a grace period of nine months to deposit them in the bank without facing penalties, taxes or questioning.

    This measure is one of the main aspects of a new scheme to resolve the country’s long-standing foreign exchange (forex) crisis.

    The scheme was unveiled by Minister of Finance and Coordinating Minister of the Economy Wale Edun yesterday in Abuja.

    The initiative, announced under the Foreign Currency Voluntary Disclosure, Depositing, Repatriation, and Investment Scheme, became effective yesterday.

    Edun explained that the scheme was primarily designed to enhance transparency in the financial sector and boost Nigeria’s economic resilience, adding that it would also attract substantial foreign currency inflows, thus strengthening the nation’s financial stability and enabling productive investments in Nigeria’s economy.

    At the end of the 145th meeting of the National Economic Council (NEC),  Edun told reporters that with the scheme, Nigerians with legitimate foreign exchange holdings to repatriate and invest can do so without restrictions.

    He said the primary condition for participation in the scheme is that the funds must not be proceeds of crime or illicit money.

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    He added that individuals would only need to meet the standard ‘’Know Your Customer’’ (KYC) criteria of banks to qualify.

    According to him, the programme’s objectives are two folds. Firstly, it provides an opportunity for individuals to legitimise their holdings, making them safe and secure. Secondly, it enables the government to inject these funds into the financial system, thereby boosting the country’s reserves and potentially stabilising the exchange rate.

    He said: ‘’The Ministry of Finance will release the programme’s details, followed by guidelines from the Central Bank of Nigerian (CBN). This initiative is expected to encourage compliance with laws and normal business practices, ultimately contributing to Nigeria’s economic growth.

    “There is going to be a release today, details by the federal government through the Ministry of Finance, in conjunction with the Central Bank, a programme, starting today, 31st of October, and lasting nine months, that will allow people to bring in cash that is outside the banking system.

    “They will allow forbearance to bring dollars cash. Let me emphasise once again, it is to bring dollars that they are holding outside the system to be able to bring them in and credit it to their bank accounts, as long as it is not proceeds of crime or illicit money.

    ‘’There will be no penalty, there will be no taxes, there will be no questions.

    “They just meet the normal Know Your Customer criteria of banks and they have an opportunity to bring in those funds, make them safe, make them secure, and make them available through normal, economic activity.