Friday, November 22, 2024
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FG Unveils 10-Point Fiscal Roadmap to Grow Economy

Mrs. Kemi Adeosun, Minister of Finance has unveiled a 10-Point Fiscal Roadmap to grow the Nigerian economy in 2017 and beyond. The roadmap is presented below:

Fiscal Roadmap 2017

  Fiscal Policy Initiative  Expected Impact 
1. Recognise inherited debt profile after a robust audit process:

§  Introduce promissory note program 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

 

2. 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

3. 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

 

4. 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

5. 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

 

6. 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

7. 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

 

8. 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

 

9. 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
10. Catalyse Micro, Small and Medium Enterprise (MSME) growth            through specific measures to improve capacity and access to finance:

§  Development Bank of Nigeria (US$1.3bn)

§  Increase share of business awarded to MSMEs from Government contracts

§  Tax harmonisation and tax incentives

§  Accelerated depreciation

 

§  Acceleration of MSME growth

 

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