President
Buhari declaring open a 2-day National Economic Council (NEC) Retreat
at the Statehouse Conference Centre on 21st March 2016.
The National Economic Council (NEC) ended their 2-day retreat on
Tuesday in Abuja with federal authorities and the country’s 36 states
agreeing on at least 71 proposals they believe will reinvigorate
Nigeria’s wobbling economy.
Vice President, Yemi Osinbajo, chaired the NEC, and its membership
include the 36 state governors, some Ministers and heads of relevant
government agencies.
At the end of the meeting, with the theme: "Nigerian States: Multiple Centres of Prosperity", participants took far-reaching decisions to urgently rescue the economy from collapse.
It was learnt that the decisions were taken in the areas of
agriculture, solid minerals, revenue generation and fiscal stability,
infrastructure and services, investment, industrialisation and enabling
monetary policies. Proposal were also made on survival of the states and
on how to invest in the Nigerian people.
A steering committee to implement the proposals was formed at the
meeting. It is to be headed by Vice President Osinbajo, while
implementation monitoring committee was headed by Zainab Ahmed, Minister
of State for Budget and National Planning.
President Muhammadu Buhari delivered an address at the opening of
the retreat, saying there is unanimity of opinion in Nigeria that the
nation’s economy is in bad shape, adding that four key areas, namely
agriculture, power, manufacturing and housing, require urgent attention
to revive the economy.
Below are the proposals agreed at the meeting.
NATIONAL ECONOMIC COUNCIL RETREAT HIGHLIGHTS
Theme: Nigerian States: Multiple Centres of Prosperity
The following are highlights of the just concluded NEC Retreat:
1. Agreement reached for concerted and consistent efforts to diversify revenue sources
2. Expand compliance on VAT, adopting a gradual plan for rate increase
3. Increase expenditure through borrowing, which should be invested in infrastructure
4. Federal and State Governments to focus on fiscal responsibility as a critical element in macro-economic balance
5. Increase investment in infrastructure through public private partnership (PPP)
6.Develop financial inclusion strategies to cater for the poor and vulnerable population
7. Maintain a minimum level of capital expenditure of 30% in the budget
Thematic Areas – Agriculture
1. The Federal Government to re-position Bank of Agriculture to enhance its capacity to finance agriculture.
2. Funding for Agricultural sector is considered critical and
sources of intervention funding from the Central Bank of Nigeria should
be considered
3. A single digit interest rate for agricultural loans should be
considered while duties and taxes for Agricultural products and
equipment should be waived
4. Develop strategic partnerships between Federal and State
government. Each State should make specific commitments to crops in
which it has comparative advantage and request Federal Government
intervention
5. National targets for self-sufficiency should be set for
identified crops, which should be monitored. Tomato paste – 2016, Rice –
2018, Wheat – 2019
6. The Federal and State Governments should roll out agricultural extension services nationwide
7. The Commodity Exchanges should be established for price
regulation and avoidance of losses due to lack of markets. The Abuja
Commodity Exchange should be revitalised
8. The National Agricultural Land Development Authority (NALDA) should be re-established
9. Federal Government should develop an Agriculture Implementation
plan whereby State Governments are encouraged to identify at least two
crops in which they have comparative advantage
10. States should open up of rural/feeder roads to facilitate
transportation of agricultural produce to be supported by the Federal
Government
11.The Federal and State Governments should establish minimum price guarantee for farm produce
12.The Federal Government should provide immediate funding to
upscale efforts of Agricultural Institutes of Research and Development
across Nigeria
13. State Governments should also be encouraged to fund research
and development in agriculture through technical colleges, universities
and research institutions
Thematic Area – Solid Minerals
1. Ministry of Solid Minerals Development to complete and present
the solid minerals development roadmap. This framework should address
issues of illegal miner, licenses, taxes and royalties by 31st March
2016
2. Federal government to engage with state government on the
roadmap and agree any amendment that may be required by 30th June 2016
3. Initiate relevant legislative changes that maybe necessitated by the agreed roadmap by 31stJuly 2016
4. Conclude the revalidation/recertification of all mining leases by 30th September 2016
5. Agree with states and local government on respective
responsibilities for developing feeder roads and other critical
infrastructure for solid minerals development
6. Federal Government and States to set deadlines to achieve
self-sufficiency in Bitumen/Asphalt and tiles (to discourage/stop
importation)
7. Make and communicate final decisions on operationalization of Ajaokuta steel plant by 30th June 2016
8. Establishment of joint committee to address issues of data on quantity and quality of minerals exploited and exported
9. Setting up of mining cadastral zonal offices for proximity to
States for the purpose of issuing licenses and easy monitoring by States
10. Discourage use of wood for cooking by promoting use of coal briquettes
11. Guarantee access to finance solid minerals development via intervention funds and private sector capital
12. Block revenue leakages in the sector through effective monitoring of activities in the mining sector
13. Organise artisanal/small-scale miners as a mechanism for
reducing illegal mining and Establish Mines Surveillance Taskforce by
September 2016
Thematic Area – Investment, Industrialisation and Enabling Monetary policies
1.Ministry of Industry, Trade & Investment (MITI) to develop a
matrix of actions to be taken by Federal and State Governments towards
achieving the targeted improvements in Ease of Doing Business ranking by
30th April 2016
2. Present an incentive scheme for States taking actions towards
improvement of the investment climate in their States including grants
by 30th September 2016
3. Forge strong links between the Nigeria Investment Promotion Commission (NIPC) and the State Investment Promotion Agencies
4. States to collaborate more actively on regional basis on investments and industrialization
5. The Federal Government should work with the States and other
stakeholders to create an enabling environment for trade and investment
through the implementation of the Nigerian Industrial Revolution Plan
(NIRP) to encourage industrialization
6. Make environment conducive for the Micro, Small & Medium
Enterprises to create jobs for the unemployed and undertake deliberate
policies to create access to funds
7. State and Federal Governments must emphasize the patronage of
“Made in Nigeria” products. “Import competition” rather than “import
substitution” should be emphasized
8. Governors to set up task forces to monitor implementation of
trade/ investment policies and strengthen planning institutions by
linking federal and sub-national planning; in this regard, a monthly
meeting between the Minister of Budget & National Planning and State
Commissioners for planning will be institutionalised
9. States to set up one-stop shop for investors where they do not
currently exist to attract investment and improve on IGR Safeguard
competitive market economy
10. Promote regional cooperation on investment and industrialisation
11. Implement institutional and structural reforms as a way of
improving the efficacy of monetary policy including greater consultation
with the National Economic Council
12. Predictability and consistency of the Central Bank of Nigeria’s
communication to key stakeholders is required to manage expectations
13. The Central Bank of Nigeria should carry the States along in
some of their reforms in areas of SMEs and Agricultural funding
initiatives
14. Long-term development goals should anchor policy decisions
15. Effective regulation & supervision to improve confidence in the soundness and stability of the banking system
Thematic Area – Infrastructure and Services
1. Develop infrastructure delivery plan considering current
financial capabilities driven principally by the goal of improvement of
the quality of life for the populace
2. Develop financing model for infrastructure projects
3. Integrate training and job creation components in infrastructure projects
4. Implement empowerment and entrepreneurship policies to foster inclusive growth
Thematic Area – Investing in our people
1. Federal and State Governments to work collaboratively to ensure
sustainability of the school feeding and other social protection
programmes
2. Cooperation from the States’ Ministries of Education and State
Universal Basic Education Board (SUBEBs) for the Teacher Corp program
3. Provide logistics support on the proposed upgrade of 75 existing
National Directorate of Employment (NDE) facilities (across the various
States) to Empowerment Centers
4. Cooperation and coordination with the States on their specific job creation efforts
5. State Government support on identified needs such as infrastructure and/or space for innovation hubs
6. State Government support for artisan training, scoping and
support for existing artisan cultures, use of existing training
facilities
7. Institutionalize a single register as a platform for targeting
the authentic poorest and vulnerable for safety net programs; for
government, donor agency, organizations or individuals
8. Creating a delivery mechanism that ensures efficient, consistent
timely and direct payments in the remotest parts of the country
9. Boost productivity and financial inclusion for the poorest and most vulnerable
Thematic Area – Revenue Generation and Fiscal Stability
1. There is need for deliberate effort to generate relevant data on
the respective economies of the states and the nation generally in
order to drive revenue generation
2. FIRS and SIRS need to invest in relevant technology to support efforts to improve tax collection
3. There is a need to develop incentive schemes for federal and state revenue generating agencies
4. FIRS and SIRS need to actively collaborate on initiatives to
improve tax collection, including joint audits of major corporate tax
payers
5. All state governments are encouraged to establish efficiency
units to review/enhance the quality of expenditure as well as plug
revenue leakages
6. Focus on property and consumption taxes will help in improving revenues in a fair manner
7. Tax-payer education should be intensified to expand the tax base
and avoid political back-lash from intensifying tax collection
8. State Government are encouraged to rationalise number of Ministers, Commissioners and Permanent Secretaries
9. Cost control measures should be identified and implemented on an
ongoing basis; in this regard various examples from Nigeria and other
countries are recommended
Thematic Area – Survival of States and Beyond
1. Strengthen States Peer Review Mechanism under auspices of the
Governors Forum and the National Economic Council (NEC) to promote
sharing of good practices between the Federal and States Governments
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