Business - Business & Economy - News - November 11, 2021

Nigeria approves    N348.7 trn investment in  National Dev Plan (2021-2025)

Structured along six development clusters, the plan will focus on economic growth and development, infrastructure, public administration, human capital development, social development and regional development.

MEDIATRACNET

The Federal Executive Council(FEC) has approved

The National Development Plan (NDP) for implementation between 2021 and 2025 was on Wednesday approved for the country by the Executive Council of the Federation (FEC).

Minister of Finance, Budget and National Planning, Zainab Ahmed, who announced this at the end of the virtual FEC meeting presided by Vice President Yemi Osinbajo said the new plan would succeed the National Economic Recovery and Growth Plan (NERGP), which lapsed since December 2020.

Ahmed said the plan was structured along six clusters, for economic growth and development, infrastructure, public administration, human capital development, social development and regional development.

Also, the plan, the minister said, would involve an estimated investment package of over N348.7 trillion over the five-year implementation period.

Ahmed said size of investment would comprise N49.7 trillion from the public sector, or about 14.3 per cent, and N 298.3 trillion, from thd private sector, or 85.7 per cent.

The public sector expenditure component of the investment size, she said, would be accounted for by both the federal and state governments.

“While the federal government expenditure component was N29.6 trillion, or 8.5 percent of the total expenditure outplay, the sub-national government, consisting of the states and local councils, would account for N20.1 trillion, or 5.8 percent.

During the meeting, the Minister said her ministry presented a memo to members requesting the approval for the plan to take the place of the ERGP after it expired last December. 2020.

She said phe plan is underpinned by a macro-economic framework projecting an average real gross domestic product growth of five percent per annum over its implementation period.

The Minister said funding strategies for the plan have already been identified, including broadening the existing tax base to accommodate new taxpayers, enhancing the capacity of the private sector through the creation of investment opportunities, and deliberate policy engagements and incentives to encourage fresh investments

Other strategies would include exploring domestic and concessioning financing sources as well as setting up financial investment vehicles, such as growth funds and public-private partnerships and leveraging on the Nigerian Investment and Growth Fund.

“The implementation of the plan requires the establishment of a strong implementation mechanism and framework that promotes performance and accountability, which is necessary for the implementation of the plan,” the Minister said.

“There will also be a Development Plan Implementation Unit that will 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,’’ she added.

The Development Plan Implementation Unit, the Minister explained, would be the planning arm of the ministry, while the coordination of the implementation of the plan would be carried out with the strict coordination by ministries, departments and agencies, state governments, private sector operators, civil society organisations, among others.

She said the plan also has a specific targets to deliver over the five-year implementation period.

“Immediately we get this the plan launched, we will continue working on the longer term plan, which is the Nigeria Agenda 2050,” she said.

“This is to ensure we don’t have a vacuum going forward. We have medium term development plans for five years and a long term plan, which is the Nigeria Agenda 2050.

“The long-term plan would ensure that work will continue immediately we launch this medium term plan.

“ Going forward, the national annual budgets will be derived from the plan, the details already costed.

“All MDAs will be required to draw their programmes and projects from the detailed plans they themselves have submitted during this process.

“The NDP 2021 to 2025 has been approved today by the FEC for implementation as a successor plan to the elapsed EGRP 2017-2020,” the Minister said.

On his part, the Minister of State for Budget and National Planning, Clem Agba, said  the governance structure of the plan would have Atedo Peterside, as co-Chair from the private sector.

Also, the National Steering Committee of 42 members, would comprise key ministers, representatives of the Manufacturers Association of Nigeria, other organs of the private sector and six governors representing the country’s six geo-political zones.

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