The federal government of Nigeria on Tuesday, March 7, reveals its Economic Recovery and Growth Plan (ERGP).
The government disclosed its plans to privatise some public enterprises/assets.
Leadership reports that the government also disclosed that it will significantly reduce its stake in joint venture oil assets and other oil and non-oil assets with a focus to raise more funds to finance the four-year plan. The lists of assets to be privatised has not yet been released though.
Plans to revamp local refineries to reduce petroleum product imports by 60 per cent by 2018 are also detailed in the ERGP.
The federal government said it would operate a consolidated budget that will incorporate all agencies that are fully funded by the federal government by 2018.
According to the government, within the period under cover, it will restore oil production to 2.2 million barrels per day (mbpd) and reach 2.5 mbpd by 2020, to increase export earnings and government revenues by an additional N800 billion annually, reduce the fiscal deficit and debt service ratios and attract new investments.
Part of the measures to achieve that is to pass the much talked about Petroleum Industry Reform Bill and draft new regulations consistent with the Bill, “Conclude joint venture (JV) cash call arrangements and implement a new cost recovery funding mechanism for JVs,” according to the plan obtained from the website of the Ministry of Budget and National Planning.
The federal government also rolled out a plan to increase non-oil tax revenues by improving tax compliance, broadening the tax net, employing appropriate technology, and tightening the tax code; as well as introduction of tax on luxury items and other indirect taxes to capture a greater share of the non-formal economy.
It disclosed that Value Added Tax (VAT) rate for luxury items would be increased in the same period from the present 5 to 15 per cent from 2018, while improving CIT and VAT compliance to raise 350 billion annually.
Meanwhile, National Bureau of Statistics (NBS) said the value of external merchandise trade rose to N5.28 trillion in the fourth quarter of last year (Q4 2016) compared to N4.78 trillion in the previous quarter of 2016.
Total export was valued at N2.98 trillion compared to N2.43 trillion in the previous quarter. Total import, however, fell to N2.31 trillion in Q4, representing 6.1 per cent decrease from N2.46 trillion in third quarter (Q3).
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