Business

FG unveils N348.7tn National Development Plan

Published

3 years ago

November 11, 2021

Vice President Yemi Osinbajo

Private sector to drive initiative with 85% contribution

Vice President Yemi Osinbajo is to lead the federal government’s National Economic Development Plan (NDP) of N348.7 trillion.

The ambitious project, which some experts tagged as a “serious stimulus package if well-coordinated and executed” would be driven by the public and private sectors.

Atedo Peterside, an entrepreneur, investment banker and founder of Stanbic IBTC Bank Plc, is to serve as co-chair.

The amount earmarked for the five-year plan almost doubled Nigeria’s Gross Domestic Product (GDP) which was estimated at $429.42 billion (N176.315tr) as of 2020.

GDP is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific period.

The approval was announced Wednesday after the Federal Executive Council (FEC) meeting presided over by Vice President Yemi Osinbajo.

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The Minister of Finance, Budget and National Planning, Zainab Ahmed, told reporters that the new initiative replaced the Economic Recovery and Growth Plan (ERGP) set to elapse in December this year.

The minister said the public sector would contribute N49.7 trillion (14.3%) to the investment size, and the private sector N298.3 trillion (85.7%).

She said the plan was structured on economic growth and development, infrastructure, public administration, human capital development, social development and regional development.

According to her, the funding strategy includes broadening the tax base and expanding the capacity of the private sector through creating investment opportunities and delivering quality engagements and incentives.

She added that the plan was underpinned by a macroeconomic framework that projects average GDP growth of 5% over the plan period.

How Osinbajo, others will drive initiative

The finance minister said there will be a Development Plan Implementation Unit that would report to the National Steering Committee, which will be headed by the vice president with the minister of finance, budget and national planning as vice-chair.

The minister said the Development Plan Implementation Unit would be in the planning arm of the ministry.

Zainab said the coordination of the implementation of the plan would be carried through to ensure that MDAs, state governments, private sector operators, civil society organisations, among others, were all working in a coordinated fashion.

Speaking further, the minister of state for Budget, Clem Agba, said the governance structure of the plan would have Mr Atedo Peterside as co-chair from the private sector.

He said the National Steering Committee had 42 members comprising key ministers, representatives of the Manufacturers Association of Nigeria, other organs of the private sector and six governors representing the geo-political zones.

Good news but…

A financial expert, Umar Mohammed, said it was cheering news from the federal government.

“Development planning is necessary for any serious government and it is not late that we have this one. I am impressed with some of the names I heard.

“All over the world, it is public-private partnership that drives the economy. I am sure that if properly managed, the resources would reduce poverty through job creation. I also hope that the federal government will expand its tax net by tracking taxable incomes and channelling them to viable ventures.

“Similarly, investors from the private sector should be assured that their investment is secured. We should also improve security to attract direct foreign investment,” he said.

An economic commentator and lecturer at the University of Nigeria (UNN), Mr David Aku, said while development plans are great, it is the follow-through that made the difference.

“We have had so many development plans in the past in Nigeria. Can we say any of them has been followed through? I guess not. None has been followed through from the beginning to the end. So I am not excited about this economic development plan by the Buhari administration,” he said.

He said it was more worrisome when you realise that Buhari’s government had less than two years to end, adding that not much of the implementation will happen in the lifetime of this government.

The “2021 to 2025 development plan for the medium term and this government’s life ends in 2023. I don’t know how much of the implementation would happen. I am not excited really,” he said.

Daily Trust

Related Topics:Devt Plan Featured FG National

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Lagos Rail Mass Transit part of FG free train ride – NRC

Published

1 day ago

December 21, 2024

Trends Admin

Lagos Rail Mass Transit part of FG free train ride – NRC

The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.

The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).

This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.

While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.

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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.

“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.

Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.

He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.

Lagos Rail Mass Transit part of FG free train ride – NRC

Business

NNPC denies claim of Port Harcourt refinery shutdown

Published

1 day ago

December 21, 2024

Trends Admin

Port Harcourt refinery

NNPC denies claim of Port Harcourt refinery shutdown

The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.

The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.

Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.

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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.

“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”

He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”

NNPC denies claim of Port Harcourt refinery shutdown

Business

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

Published

3 days ago

December 20, 2024

Trends Admin

CBN Governor, Olayemi Cardoso

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).

This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.

The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.

The arrangement will be in effect from December 19, 2024, to January 30, 2025.

Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.

Transactions to occur at the prevailing NFEM rate

The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.

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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.

The circular read in part:

“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).

This window will be open between December 19, 2024 to January 30, 2025.

“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”

The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”

These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.

This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.