GOVERNORS,
MINISTERS BACK ASSETS SALE TO FIGHT RECESSION
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here
was an insight yesterday into the Federal Government’s battle against the
recession that has hit the economy.
The
government’s plan to exit the recession which got the backing of the National
Economic Council (NEC) includes
- assets sales;
- advance payment of licence renewals;
- infrastructure concessioning; and
- implementation of fiscal stimulus.
The
NEC is the highest economic decision body chaired by the vice president. Other
members are governors and key ministers in charge of the economy and the
Central Bank of Nigeria (CBN) governor.
Some
experts and leading politicians have suggested the sale of some assets, saying
this will provide the cash to reflate the economy, reopen factories and put
money in the people’s pockets.
Pushing this view
are business giant Aliko Dangote, former Central Bank of Nigeria (CBN) Governor
Muhammad Sanusi II, the Emir of Kano and Senate President Bukola Saraki, among
others.
But Labour has
condemned the idea, saying it will make a few to amass the wealth of all and
deepen the seeming despair in the land.
Yesterday’s
meeting, which started about 11.10am, was presided over by Vice President Yemi
Osinbajo.
No fewer than 23
governors attended it. They include Governors Ayo Fayose (Ekiti),
Abubakar Atiku Bagudu (Kebbi), Ifeanyi Okowa (Delta), Abubakar Mohammed
(Bauchi), Willy Obiano (Anambra), Ifeanyi Ugwuanyi (Enugu),
Abdufatah Ahmed (Kwara), Yahaya Bello (Kogi), Nasir el-Rufai
(Kaduna), Olusegun Mimiko (Ondo), Aminu Tambuwal (Sokoto), Abiola
Ajimobi (Oyo) and Badaru Abubakar (Jigawa).
Deputy governors
of Rivers, Nasarawa, Katsina and Lagos represented their bosses.
A statement from
the media office of the Vice President on the meeting said: “Rising from
its monthly meeting today at the Presidential Villa, members of the National
Economic Council, NEC, presided over by Vice President Prof Yemi Osinbajo
(SAN), expressed support for the plans and proposals of the Federal Government
to steer the country out of recession.
“While
acknowledging the current economic challenges and difficulties, governors at
the meeting also endorsed the work of the President’s Economic Management Team
and specifically commended the Budget & Planning and Finance Ministers.”
Among the measures
for economic revitalisation, he said, are a plan to generate immediate larger
injection of fund into the economy through assets sales, advance payment of
licence renewals, infrastructure concessioning, and use of recovered funds etc
to reduce funding gaps, implementation of Fiscal Stimulus/Budget Priorities.
“Council members
in response commended the Economic Management Team and generally welcomed the
presentation and expressed support for the plan to steer the nation out of
recession.
“Under AOB,
Council members expressed confidence in and unanimously commended the EMT and
both the Budget & National Planning and Finance Ministers for the
presentations to the Council, praising their efforts, competence and
capabilities.”
The NEC also
expressed confidence in the capability of Minister of Budget and National
Planning, Udoma Udo Udoma and Minister of Finance Mrs Kemi Adeosun.
Deputy Senate
President Ike Ekweremadu and a few other senators on Wednesday pushed
for the removal of Udoma and Adeosun for their ‘poor’ handling of the economy
and the recession.
But, speaking with
reporters at the State House yesterday at the end of the NEC meeting, Kebbi
State Governor Atiku Bagudu said NEC praised the handling of the economy.
He was accompanied
to the briefing by Ajimobi and Ogun State Deputy Governor Mrs. Yetunde Onanuga.
Bagudu said: “The
National Economic Council met today at its sixth meeting of the year, which is
the 70th National Executive Council meeting and the Ministers of Budget and
National Planning and the Central Bank (of Nigeria) Governor made presentations
and the highlights of the presentations were the sad news that the economy was
in recession largely due to the dependency on single commodity which is crude
oil, which prices we do not control.
“Oil price
collapsed to less than $30 per barrel in first quarter of 2016 and market
expectation is that it will remain low for a longer period.
“However, this
crisis holds a silver lining to restructure the economy towards other areas
that we believe we have comparative advantage.
“Fast track
procedures through legislation and strategic implementation plan of the budget,
meaningful diversification of the economy which will cut down importation.
“The members of
the council responded and acknowledged with commendation the presentation by
the economic team and support the plan to steer the nation out of recession.
“And, in
particular, it was noted that our economic managers the National Economic Team
are responding in competition with economic managers elsewhere. So it is not an
easy task, it is a very difficult task and we crave the indulgence of our
nation to give them a chance for the measures to take effect.”
Ajimobi said the
Presidential Technical Committee on Land Reform (PTCLR) presented the draft
regulation on Land Use Act 2013 to NEC.
According to him,
the regulation seeks to make provisions to streamline mortgage transactions and
clearly delineate the rights, duties and obligations of a mortgage.
Ajimobi said the
Minister of Finance made a presentation on Public Private Partnership (PPP)
Initiatives on Affordable Housing.
Highlights of the
presentation, he said, included target of N1 billion fund to operate PPP (N500
billion initial) to create a blended pool of long term funds to intervene in
housing development finance and mortgage provision
He said the fund
will deliver family housing for as low as N2.5 million up to N18 million
delivered in a ready to occupy condition with essential services (water and
power connected).
Ajimobi said: “The
delivery target is 400,000 to 500,000 housing units per annum. The ultimate aim
of the programme is to channel funds from savers to borrowers, so that builders
have the required capital to construct and prospective buyers can access credit
to purchase.
“The fund will
attract low cost local and international capital, including from domestic
pension and insurance funds, Federal Government funding, as well as
contributions from state governments and other agencies.”
The states are to
designate a liaison with whom Family Homes Fund can interface, expedite
building plan approval process and security of land title, invest in enabling
infrastructure, such as Federal roads.
Other benefits,
Ajimobi said, include improved urban planning and development, employment
generation and skills enhancement, and expansion of tax base.
Mrs. Onanuga said
the NEC was briefed that the balance on Excess Crude Account (ECA) as at 20th
September, 2016 was $2.453 billion.
She said Adeosun
and CBN Governor Godwin Emefiele briefed NEC on best options for managing the
floating forex policy introduced by Emefuele.
Highlights of the
presentation, Mrs Onanuga said, included CBN -introduced cautious Monetary
Policy orientation as dictated by consumer price and exchange rate,
adoption of policy tightening measures for flexible forex rate to address
persistent pressures caused by scarcity and speculative demands, improving
market dynamics by CBN, interventions to states in the area of salaries and in
commercial agriculture.
She said that the
presentation also noted that controlling inflation is key to stabilising other
macroeconomic indices and the current stance of monetary policy is expected to
continue to help lock-in inflation expectations.
On the update on
Budget Support Loan facility, Mrs Onanuga said the minister of finance reported
to Council that N50 billion had so far been disbursed to state governments while
the facility was ongoing.Read more
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