Nigeria has attracted investment worth $10 billion, following the import prohibition policy imposed on 41 items, according to Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN).
Emefiele disclosed this during an interactive session on the 2018 budget estimates and 2018-2020 Medium Term Expenditure Framework/Fiscal Strategy Paper between the members of the National Economic Committee and joint House of Representatives Committee on Finance, Appropriation; Aid, Loans & Debt Management and Budget Research.
Emefiele who was represented by Adebayo Adelabu, CBN Deputy Governor for Operations, noted that the key fiscal policies introduced by the present administration, aimed at stabilising the economy, have resulted into reduction in inflation rate from 18.9% to a little above 15%; increased local production and GDP growth, as well as foreign reserve from $28 billion to about $35 billion.
According to him, some companies established across the country have commenced local manufacturing of some of the prohibited items in the country, including building materials such as granite, marble, among others. He said they have also generated employment for Nigerians across the country.
He further expressed optimism that the N305/$ official exchange rate and N360/$ at the parallel market have been stable over the past few months, adding that the intervention of the CBN in key sectors of the economy, including agriculture, solid minerals, manufacturing and petroleum has yielded positive results.
He added that the CBN and Federal Account Allocation Committee (FAAC) agreed to remit the proceeds from foreign exchange transaction into the Federation Account for the three tiers of government to share, and reduce budget deficit.
He disclosed that the CBN does not give bailout facilities to subnational government, as stipulated in the CBN Act, 2007, adding that the intervention fund given to critical sectors of the economy at single rate, was channeled through development financial institutions, since they cannot afford the high interest rate from commercial banks.
In his presentation, Ben Akabueze, Director-General of the Budget Office of the Federation, said some of the public assets to be privatised in 2018 are the Tafawa Balewa Square; National Parks; National Theater; and other non-core assets, including estates in the solid mineral sector; industry and services, among others.
Mahmud Dutse, Permanent Secretary, Federal Ministry of Finance, also solicited the cooperation of the Legislature towards boosting the 20% independent revenue from government owned enterprises, adding that plans were underway to sanction chief executives of agencies who failed to comply with the policy.
Dutse, who respresented Kemi Adeosun, Minister of Finance, also stressed the need for the review of Nigeria’s tax regime, which he observed is one of the lowest in the world.
He added that the only proposal for tax review applies to excise duties on alcohol and cigarettes, in line with the ECOWAS tariff policy.
Tunde Fowler, Executive Chairman, Federal Inland Revenue Service (FIRS) disclosed that a total sum of N3.233 trillion was realised over the past ten months, representing 79.35 percent of its collection target for 2017 fiscal year.
Fowler explained that FIRS justification for 2018-2020 revenue framework was based on the Federal Government’s Economic Recovery and Growth Plan (ERGP).
He explained that the Service has deployed technology to ramp-up additional revenue, especially as its tax assessment between 2013 and 2015 revealed N1 trillion after its tax audit exercise.
Fowler further said the exercise had already yielded over N3.7 billion in collection of taxes into the Federal Government’s coffers.
These successes, he noted, were as a result of the various measures which have been adopted by the service to ensure increased collection of Federal Government dues in corporate and individual taxes.
The measure, he said, will continue to be relevant in achieving better collections in 2018.
