—-plan to raise oil production to 2.5 mbpd by 2020
—-Expand tax base
—-to privatise selected assets
—-to present document to creditors end of Februry
Federal Government has developed 59 strategies for implementation to achieve the strategic objectives of the Economic Recovery Growth Plan that will be launched in the next few weeks. The document which has been finalised waiting for Federal Ececutive Council endorsement has twelve strategies that have been prioritised based on their importance to the success of the plan.
Those who are working on the document a copy of which Vanguard sighted said that the federal government intend to restore crude oil production to budget target of 2.2 million barrel per day and move from there to 2.5 million barrel per day by 2020. It said in the Economic Recovery Growth plan that some federal government selected assets will be privatised to raise the needed funds to implement the programme in the plan.
Nigeria, those who drew up the plan said will accelerate non-oil revenue generation through expanding the tax base blocking leakages in tax avoidance and non payment. The federal government it was learnt intend when the plan come into force to drastically cut cost and align monetary and fiscal policies. The government also during the plan period spend heavily to expand critical infrastucture especially power, roads and rail.
Another strategy in the recovery plan is government intention to revamp the four existing refineries to ensure local supply of petroleum products in order to conserve foreign exchange. It is also stated in the document government intention to expand its social investment and deliver on agricultural transformation.
Government in its strategic plan will accelarate the implementation of National Industral revolution plan using special economic zones and improving on ease of doing business in Nigeria. It is also to focus on proirity sectors in order to create jobs, promote exports, boost growth and upgrades skills.
Nigeria is putting in place this economic blue print in order to meet the conditions needed for it to borrow at least $1 billion from the World Bank to help pull the economy out of recession. Nigeria it was learnt plans to present the economic reform proposals to the World Bank and other creditors it seeking to borrow from.
The government now plans to present its economic reform proposals by the end of February, according to government officials and Western diplomats who declined to be named as they are not authorised to speak publicly. One senior government official said Nigeria would seek a loan of $1 billion from the World Bank, while a second senior official said it could seek as much as $2 billion.
The Nigerian finance ministry declined to comment on the size of the loan being sought or the timing of the submission of the reform proposals. The World Bank also declined to comment on those matters. A spokeswoman said Nigeria’s economic proposals would be the “basis of which the World Bank will determine with the government the most appropriate lending instrument to support the implementation of the reform plan”.
It had planned to apply for a World Bank loan last year but the process had ground to a halt because it failed to submit its economic recovery plans by the end of December as initially promised. The African Development Bank (AfDB), meanwhile, is holding back the second, $400 million, tranche of a $1 billion loan because it is also awaiting the reform plans.
Nigeria will present its economic proposals to the AfDB at the same time as the World Bank, according to the government officials.
