The Federal Executive Council is yet to decide on the best approach to reflate the Nigerian Economy which is currently in a recession, minister of information and culture, Lai Mohammed said on Wednesday adding that the planned sale of government assets were still mere speculations.
So far issues of assets sale, asset leasing and others to shore up the country’s foreign exchange base were just mere suggestions yet to be approved by the federal government, despite the recommendations from the National Economic Council (NEC) Mohammed said while briefing journalists alongside the Minister of Water Resources Suleiman Adamu, after the Federal Executive Council meeting at the Presidential Villa, Abuja.
The NEC has during its last meeting endorsed measures presented by the Economic Management Team to revitalize the economy. The measures had included; asset sales, Advance payment of license renewal, Infrastructure concessioning, Use of recovered funds etc to reduce funding gaps, Implementation of Fiscal Stimulus/Budget Priorities, Fast-track procedures through legislation and implementation of Strategic Implementation Plan (SIP) of the budget, Meaningful diversification of the economy and cut down on importation.
The federal government is targeting to raise between $10 billion to $15 billion the sale of some national assets following the drop in the nation’s monthly foreign earnings to about $300 million.
A senior Presidency official had on Monday disclosed that though not yet approved, the government was planning to sell off 5% of its 49% shares in the Nigerian Liquefied Natural Gas (NLNG) in planned efforts to dispose of national assets across the country to raise the much needed foreign currency, but with a repurchase clause. The clause will be included in all sale agreement of national assets. The senate and the Nigerian Labour Congress have subsequently kicked against the planned the move by the government.
However, briefing newsmen Mohammed said ”Government is still working on the most comprehensive manner to reflate the economy and the government will make its position known very soon.
“What the government will do is to reflate the economy, everything
you have heard so far is just suggestion, until the government makes its position known, all these assets sale, assets leasing, whatever is being bandied about there are nothing but speculations.
The government is yet to come out with its position on how to bail out the economy and it will do that position. NEC will recommend but is the federal executive council that will decide and what we decide will be the position of government”.
Meanwhile, Council also approved a National Water Policy, National Irrigation Policy and a Draft National Water Resources Bill.
Explaining the approvals which came from three memos the water resources minister said the National Water Policy seeks to provide strategies that will improve the management and delivery of water in the country in particular reference to water supply.
The National Water Policy is followed by the enabling law, which is the National Water Resources Bill. This consolidates all the existing laws, the Water Resources Act, the River Basin Development Authority Act, National Water Resources Institute Act, National Hydrological Services Act and other Acts put together to form a national law that conforms to international standard and international best practices, the minister said.
“By so doing we have been able to streamline many of the overlapping laws, sometimes we have conflict in laws, like the one we have with Nigerian Inland Waterways Authority (NIWA), some laws relating to environment, minning.
“This bill seeks to sought out all those issues so that we have a standard national law, also so that we can set up a proper regulatory agency to regulate the water sector. With that the door is now open for the private sector to come in in a big way to invest in water supply schemes in this country” he added.
According to the minister the irrigation and drainage policy seeks to recognise and bring in water users association and generally improve not only irrigation infrastructure but irrigation management in the country.
“Nigeria has the potential of 3.4 million hectares of land for irrigation and we have only about 130,000 has been developed formally and only about 70,000 is being utilised.
“So there is a huge gap and we feel that introducing this policy will help us to work along at federal and at regional level with the states so that we will have all encompassing policy that will help our agriculture agenda for now. And also support our national irrigation policy that introduce under a roadmap that is suppose to be from this year to 2030. It won’t go well without this policy”
