Economic Opportunities the National Economic Sustainability Plan OFFERS!

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HARUNA Emmanuel Umoru

The National Economic Sustainability Plan intends to spend 2.3 Trillion Naira in a stimulus package that is the BIGGEST ever STIMULAS PACKAGE by any Nigerian Government. The Plan presents economic opportunities Nigerians can exploit, in this piece, panelist and NIGAC Non-resident Policy Fellow, Emmanuel Haruna breaks down the components of the NESP and areas where Nigerians should have their eyes fixated upon. He also shared his thoughts on areas the Federal Government should pay more attention to as it intends to execute these plans within the next 12 months.

 

Identified programmes in NESP:

The future of work-strategy for jobs in Technology

  • Digital economy to create 1 million jobs in outsourcing
  • Objective: launch a national programme to create jobs in digital outsourcing.
  • Implementer: Federal Ministry of Communications and Digital Economy.
  • Estimated cost: N/A
  • Timeline: 12 months

National Gas Expansion Programme (NGEP)

  • Accelerate the transition of Nigeria to a post-oil era, promote the domestic use of cleaner fuels, and prepare the CNG market for export opportunities.
  • Objective: launch a national programme to promote use of CNG and support the creation of 1 million jobs.
  • Implementer: Federal Ministry of Petroleum Resources, NNPC, and Inter-Ministerial Committee on LPG
  • Estimated cost: N4 billion
  • Timeline: 12 months

Supporting Small Businesses: Guaranteed Offtake Scheme for MSMEs; SME Survival Fund; SME Intervention Funds; MSME Regulatory Support

  • Ensure that small businesses do not fail and thus ensure that the jobs in the MSME sector are not lost to the global and national slowdown in economic activity.
  • Objective: Sustain 300,000 jobs in 100,000 MSMEs by guaranteeing off-take of priority products, such as processed food, Personal Protective Equipment, hand sanitizers, facemasks, face-shields, shoe covers, pharmaceuticals.
  • Implementer: Federal Ministry of industry, Trade and Investment, Bank of Industry, Federal Ministry of Finance, Budget & National Planning, National Agency for Food and Drug Administration and Control, and Steering Committee on the MSME Survival Fund.
  • Estimated cost: N15 billion; N50 billion (payroll support), N200 billion (loans to artisans), N10 billion (support to private transport companies and workers), and N350 billion
  • Timeline: 0-6 months

Moving people and goods: Road construction and rehabilitation

  • Road construction and rehabilitation is essential to boost economic activity by easing the transportation of goods and persons.
  • Objective: Using local materials, create 296,000 jobs in the construction and rehabilitation of roads in the 6 geo-political zones of the country.
  • Implementer: Federal Ministry of Works and Housing.
  • Estimated cost: N60 billion
  • Timeline: 12 months

Building A Resilient Health Sector

  • COVID-19 has impacted negatively on health sector. Immediate efforts are targeted at ramping up local production of materials such as Personal Protective Equipment (PPEs), hand sanitizers, face masks and other resources for infection control.
  • Objective: Develop a robust health system with the capacity to withstand shocks.
  • Implementer: Federal Ministry of Health
  • Estimated cost: N9 billion
  • Timeline: 12 months

WASH Emergency Response to COVID-19

  • Concerted efforts to increase water supply to public utilities and public places, including markets, IDP camps, isolation and testing centers.
  • Objective: Contribute to public health strategies to increase pandemic preparedness.
  • Implementer: WASH Sector COVID-19 National Response Committee
  • Estimated cost: N3 billion
  • Timeline: 12 months

Social Investment Programme

  • Cash Transfers will be expanded to cover an additional 1 million households, e.g N-Power and Government Enterprise and Empowerment Programme (GEEP).
  • Objective: Increase support to vulnerable individuals and households in the context of COVID-19.
  • Implementer: Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development
  • Estimated cost: N87 billion
  • Timeline: 12 months

Aviation

  • The Aviation industry has been hard hit by the COVID-19 pandemic as over 90% of its activities and operations have been adversely affected, resulting in losses that are valued at N21 billion on a monthly basis.
  • Objective: Save existing aviation industry organizations and jobs, through a targeted stimulus package and fast track the establishment of a private sector driven national carrier.
  • Implementer: Federal Ministry of Aviation
  • Estimated cost: N27 billion
  • Timeline: 12 months

Ensuring Continuous Learning-Education

  • COVID-19 has impacted negatively on health sector. Practical steps will be taken to minimize disruption to learning, utilizing technology as appropriate.
  • Objective: Minimize disruption to learning at all levels of education.
  • Implementer: Federal Ministry of Education, Federal Ministry of Youth and Sports
  • Estimated cost: N/A
  • Timeline: 12 months

Science and Technology

  • Integrating the use of science and technology in the agricultural, housing and roads and solar power projects. Increasing energy reliance through sustainable Research and Development (R&D) in renewable and alternative energy sources.
  • Objective: Establishment of an economically viable Science and Innovation ecosystem in Nigeria.
  • Implementer: Federal Ministry of Science and Technology
  • Estimated cost: N1 billion
  • Timeline: 12 months

Internal Security Sector

  • Border closure and travel restrictions, restrictions of business activities, cessation of issuance of pass-ports and visas, inability of some companies to promptly renew their expatriate quota positions, evacuation of foreigners and congestion in correctional centres.
  • Objective: Strengthen the national capacity to manage immigration, correctional facilities and public safety post-COVID-19.
  • Implementer: Federal Ministry of Interior
  • Estimated cost: N4 billion
  • Timeline: 12 months

Solid Minerals

  • Develop artisanal and small-scale mining for economic growth and development in Nigeria. The target area for the implementation of the project is the known ASM high density States in Nigeria, including Osun (gold mining), Zamfara (gold mining), Kaduna, Niger (gold mining), Bauchi (kaolin & coltan), Nasarawa, Gombe (gypsum) and Plateau (tin) states. A cluster in each geopolitical zone.
  • Objective: Establish a programme to organize artisanal miners and develop the mineral value-chain in 6 geo-political zones.
  • Implementer: Ministry of Mines and Steel Development
  • Estimated cost: N6 billion
  • Timeline: 12 months

Digital Switch Over Programme

  • Switching from Analogue Switch Off (ASO) to national Digital Over programme (DSO).
  • Objective: Fast-track the implementation of the National Digital Switch Over programme.
  • Implementer: Federal Ministry of Information and Culture.
  • Estimated cost: N15 billion
  • Timeline: 12 months

Where will the money come from (N 2.3 trillion)?

  • FG special account: N500 billion.
  • CBN loan: N11 trillion.
  • Multilateral institutions loan: N9 billion
  • External creditors loan: N300 billion (IMF $3.4 billion (Interest Free), World Bank $2.5 billion, African Development Bank $0.5 billion, African Export-Import Bank $0.5 billion, and Islamic Development Bank $113 million)

Delivery the plan:

  • Delivery is key to the plan.
  • The Economic Sustainability Committee (ESC) and the National Economic Council (NEC), chaired by the Vice President and report to Mr. President. They will oversee the strategic vision, policy direction and general oversight of the implementation process.
  • Ultimately, the key implementation lies with the respective Government Ministries, Departments and Agencies (MDAs). Hence, the Ministerial Implementation Committee will chair the Federal Ministries.

Key issues to look at (NIGAC Thoughts):

  • Household data to help identification in providing project interventions.
  • Interface between the public sector and private sector in terms of the plan implementation process.
  • Mindful of accountability framework and the monitoring mechanism.
  • A clear timeline for each of the project implementation.
  • A focus on activities that would create a value-chain benefits.
  • The multilateral lenders need to be involved in the activity’s development, implementation, and outcomes delivery.
  • The ESC Secretariat should involve key MDAs, to ensure effective collaboration.

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