SUMMARY OF THE 140 PAGES OF ECONOMIC RECOVERY PLAN
- REVIEW BAN ON 41 ITEMS, FREE FOREX MARKET
- SELL NATIONAL ASSETS – Selected public enterprises/assets will be privatized to optimize their efficiency and reduce fiscal burden on the government.
- CREATE 15 MILLION JOBS BY 2020 – One major strategy is to accelerate implementation of the National Industrial Revolution Plan (NIRP) through Special Economic Zones (SEZs). The focus will be on priority sectors to generate jobs, promote exports, boost growth and upgrade skills
- DON’T IMPORT A DROP OF PETROL BY 2020 – Boost local refining for self-sufficiency. Reduce petroleum product imports by 60 per cent by 2018, become a net exporter by 2020, save foreign exchange and prevent reversion to the fuel subsidy regime.
- HIT 10,000 MEGAWATTS BY 2020 – BUT NO SELLING TCN: With regard to the power value chain, efforts will be concentrated on overcoming the current challenges which relate to governance, funding, legal, regulatory, and pricing issues across the three main power segments of generation, transmission and distribution, and ensuring stricter contract and regulatory compliance. “The Plan also aims to increase power generation by optimizing operational capacity, to improve the energy mix including through greater use of renewable energy, encouraging small-scale projects, and building more capacity over the long term. Government will also invest in transmission infrastructure.”
- RAISE VAT TO 15% — ONLY ON LUXURY ITEMS: The plan is to increase the tax base by raising the VAT rate for luxury items from 5 to 15 per cent from 2018, while improving CIT and VAT compliance to raise 350 billion annually.
- RAISE OIL PRODUCTION TO 2.5MBPD
- TAKE INFLATION BACK TO SINGLE DIGIT – The recovery plan seeks to cut inflation from 15.7 percent in 2017, and down to 9.9 percent by 2020, based on sound macro-economic policies.
- ACHIEVE TOMATO, RICE, WHEAT SELF-SUFFICIENCY: Nigeria is projected to become a net exporter of key agricultural products, such as rice, cashew nuts, groundnuts, cassava and vegetable oil. The government also plans to “open up a minimum of 100,000 hectares of irrigable land through the 12 River Basin Development Authorities by 2020,” and “expand the use of dams for commercial farming and aquaculture”.
- PROVIDE TWO MILLION HOUSES BY 2020 – improve access to finance for the construction industry, e.g., by fast-tracking implementation of the proposed Family Homes Fund, to build 2 million housing units by 2020″. “Reposition the Federal Mortgage Bank of Nigeria by recapitalizing it from N2.5 billion to N500 billion to meet the housing needs across Nigeria.
Source: The Cable