Nigerian authorities confirmed on Monday that the economic recovery plan expected to facilitate the nation’s growth rebound is still not ready, several months after it was announced.
The growth strategy, many say, is stalling critical policy pronouncements, including government’s final resolve on the 41 items excluded by the Central Bank of Nigeria (CBN) from accessing foreign exchange for import.
Also, government’s ability to borrow more from the international lenders also hinges on how soon that plan can be finalised and launched.
The plan was announced in November last year and the government had targeted to begin its implementation by December, it was moved to January and later to February.
Udoma Udo Udoma, minister of budget and national planning, said on Monday that the government was still holding consultations before putting finishing touches to the plan.
Speaking at a consultative forum of the Economic Recovery and Growth Plan (ERGP) between the Economic Management Team and the Organised Private Sector on the Economic Recovery Growth Plan chaired by acting President Yemi Osinbajo, the budget minister, said: “This meeting with you forms part of the consultations we are holding before finalising the plan.”
The EPRG is a medium-term plan, expected to drive Nigeria to a minimum GDP growth rate of 7 percent for the timeline, 2017 – 2020, and all subsequent budgets under the Buhari administration with a goal to have an economy with low inflation, stable exchange rates and a diversified and inclusive growth.
Udoma said in December last year while publicly presenting the proposed 2017 budget breakdown that Nigeria’s Medium Term Economic Recovery and Growth Plan (ERGP 2017 – 2020) was being finalised.
The plan, which addresses the current economic challenges, is aimed at restoring growth and builds on the existing Strategic Implementation Plan (SIP), and contains strategic objectives and enablers required to revive the economy.
Officials have continuously announced that President Muhammadu Buhari, who is on vacation in London, will launch the document later this month even though his stay has been extended indefinitely.
The document also focuses on tackling growth constraints like fuel, power, foreign exchange and even unfriendly business regulations. It will also leverage on the power of the private sector, as the government alone cannot achieve the economic recovery growth. The government says it will harness the entrepreneurial nature of Nigerians from MSMEs to large domestic and multinational corporations.
It also focuses on 5 broad areas namely: Macroeconomic Stability, Competitiveness, Growth and Diversification Social Inclusion and Governance & Enablers.
Strategic objectives of the NERGP include; Pulling the economy out of recession; Investing in the Nigerian people; Laying the foundation of diversified, inclusive and sustainable growth.
The budget minister said the government is more concerned about the execution and had mapped out immediate priorities through agriculture and food security; energy including power and petroleum; small businesses and industrialisation and stabilise macroeconomic environment.
Despite reiterating that the plan will be launched within this month, there are concerns work on the document may not be completed before the end of the month as promised or it may be rushed.
Delaying the launch of the plan will not only stagnate the country’s plan to immediately get out of recession, it will also affect the 2017 budget as officials say the government plans to borrow $1 billion form the World Bank to support the appropriations.
International lenders who Nigerian authorities have been engaging with for budget support last month confirmed that they were still awaiting the country’s Economic Recovery and Growth Plan to enable appropriate position on the request.
World Bank and Africa Development Bank officials had confirmed ongoing discussions on the funding support to the country but said further actions would depend on the country’s reform agenda intended to revive from recession.
Nigerian authorities proposed to source N900 billion foreign borrowing in the 2016 budget to partly plunge the N2.22 trillion deficit of the N6.07 trillion budget hardly implemented due largely to funding constraints.
For 2017, there has been a proposal to source N1.067 trillion externally to partly finance projected N2.32 trillion budget deficit in the record N7.298 trillion budget, which is about to be debated by the parliament.
In his remarks the acting President said the fundamentals of the ERGP is basically to work with the private sector and ensure that business thrives.
