FG Reveals 10-Point Roadmap To Save Economy

**To Return Toll Gates

Return of Toll Gates Shameful—SERG

FG Plans Return of Toll Gates Across Nigeria

By Modupe Gbadeyanka

Federal Government has revealed steps it hopes to take to salvage the country’s economy, which has been battling with recession for months.

Minister of Finance, Mrs Kemi Adeosun, who spoke at an event in Lagos, disclosed that the FG would focus on 10 points to help Nigeria out of the economic downturn.

Mrs Adeosun, who represented the Vice President, Mr Yemi Osinbajo, at the annual dinner of the Lagos Business School, noted that the 10-point roadmap would address the major problems dragging the economy backward.

According to her, the Federal Government’s Fiscal Roadmap will tackle obstructions to growth that will drive productivity, generate jobs and broaden wealth creating opportunities to achieve inclusive growth.

She said further that much attention would be focused on infrastructure deficit to unlock productivity, improve business competitiveness and create employment.

“Government would actively partner with the private sector to achieve this by use of a number of new funding platforms. These include the Road Trust Fund, which will develop potentially ‘tollable’ roads, and the Family Homes Fund which is an ongoing PPP initiative for funding of affordable housing,” she said at the event.

She added that the tax system would be reviewed to ensure companies get tax relief for investment in roads on a collective basis, subject to approval by FIRS and the Ministry of Works.

According to the Minister, only two firms, Dangote and Lafarge have only been able to get such.

Mrs Adeosun listed the government’s 10-point roadmap as follows:

The fiscal roadmap is detailed in the attached 10-point plan:

Fiscal Roadmap 2017

Fiscal Policy Initiative

Expected Impact

Recognise inherited debt profile after a robust audit process:

Introduce promissory note programme to finance verified liabilities
Issue debt certificates to contractors, Ministries, Departments & Agencies (MDAs), and State Governments
Improve cash flow of businesses
Improve Banks’ Non-Performing Loans (NPLs)
Free up Banks’ balance sheet for lending to private sector
Improve government’s business interaction with the private sector

Mobilise private capital to complement Government spending on infrastructure:

Roads Trust Fund
Family Homes Fund
Extend infrastructure tax relief to a collective model to attract clusters of corporate entities
Expand the provision of infrastructure
Drive growth of non-oil sector.
Drive economic growth

Strengthen fiscal/monetary handshake:

Replace administrative measures on list of 41-items with fiscal measures to reduce demand pressure in parallel market
Encourage domestic food production through specific incentives e.g. accelerated depreciation on food manufacturing equipment and Zero (0%) duty on green houses
Planned revitalisation of refineries
Increase Diaspora remittances via participation in the buyer support scheme for the Family Homes Fund
Reduce demand for US Dollars
Increase supply of US Dollars

Incentivise exports:

Restructure the Export Expansion Grant (EEG) to a tax credit system
Rationalise tariffs and waivers in key export sectors
Encourage/incentivise non-oil exports
Drive import substitution

Encourage investment in specific sectors through fiscal incentives:

Accelerated depreciation on equipment in strategic sectors e.g. food processing, mining and power
Rationalise tariffs and waivers in priority sectors
Drive investment in strategic sectors

Continue expansion of fiscal space through revenue enhancement and cost consolidation:

Customs Single Window (being implemented through a Private Public Partnership (PPP) scheme)
Template for non-allowable expenses for government agencies.
Overhead cost control by the Efficiency Unit
Continuous risk based audit by the Presidential Initiative on Continuous Audit
Revenue enhancement
Cost containment

Improve fiscal discipline at Sub-National level:

Extension of efficiency unit at Sub-National level
Fast track municipal bond issues to deepen the bond market
Conversion to International Public Sector Accounting Standards by all State Governments.
Improved fiscal position at Sub-National level

Enable and accelerate Recoveries process:

Whistle-blower scheme
Centralised database on recovered assets
Asset tracing
Professional management of recovered assets
Increased efficiency of Recoveries process
Increased budgetary funding availability from Recoveries

Rebalance debt portfolio to extend maturity and optimise debt service cost:

Rebalance public debt portfolio with increased external borrowing (60:40 target)
Extend maturity profile of public debt portfolio
Deploy long-term debt instruments including Infrastructure and Retail Bonds
Maximise use of concessionary loans
Rebalanced debt profile withimproved debt service to revenue ratio