The Nigeria Economic Sustainability Plan (NESP), approved by the Federal Executive Council (FEC) on June 24, 2020, was developed by the Economic Sustainability Committee (ESC), established by President Muhammadu Buhari on March 30, 2020.
Chaired by Vice President Yemi Osinbajo, the ESC comprised several Cabinet Ministers as well as the Group Managing Director of the NNPC and the Governor of the Central Bank of Nigeria (CBN).
Terms of Reference included:
– Development of a Plan that responds robustly and appropriately to the challenges posed by the COVID-19 pandemic
– Identification of fiscal measures to enhance oil and non-oil government revenues and reduce non-essential spending,
– Creation of a financial stimulus package for the Nigerian economy,
– Articulation of specific measures to support the 36 States and the FCT, and very importantly,
– Support for MSMEs and the creation of jobs.
The NESP was developed in consultation with Cabinet Ministers, Heads of Federal Agencies, the Presidential Economic Advisory Council (PEAC), State Governors and the National Assembly.
The NESP has been developed as a 12-month, 2.3 Trillion Naira ‘Transit’ Plan between the Economic Recovery and Growth Plan (ERGP) and the successor plan to the ERGP, which is currently in development.
The NESP will be funded as follows:
• 500 billion Naira from Special FGN Accounts
• 1.1 trillion Naira from the CBN in the form of structured lending
• 334 billion Naira from external bilateral/multilateral sources
• 302.9 billion from other funding sources
The design and implementation of the NESP is driven by the following principles:
LOCAL CONTENT AND SELF RELIANCE: The plan promotes local production, local services, local innovation, and the use of local materials, in line with the Mandate of Presidential Executive Order 5 of 2017, on the Promotion of Nigerian Content in Contracts and Science, Engineering and Technology, and also based on President Buhari’s mantra to “produce what we eat and consume what we produce.”
ECONOMIC STIMULATION: Ensuring liquidity, preventing business collapse, and staving off the worst impact of a potential recession.
JOB PRESERVATION AND CREATION: The NESP recommends carrying labour intensive programmes in key areas like housing, roads, agriculture, facility maintenance, and direct labour interventions – all heavily utilising local materials.
PRO-POOR/VULNERABLE FOCUS: The NESP will extend protection to vulnerable groups, including women, and persons living with disabilities. It will also cater to the sectors of the economy that have been worst hit by the pandemic.
The Plan intends to ensure the cultivation of between 20,000 and 100,000 hectares of new farmland in every State, as well as support offtake and agro-processing, with low-interest credit. This will create millions of direct and indirect job opportunities.
A minimum of 1,000 young Nigerians will be recruited per local government into what will be the largest public works programme in the history of Nigeria, amounting to 774,000 direct jobs. There will also be extensive focus on the construction and repair of major and rural roads using locally available materials like limestone, cement and granite. The roads component will include the acceleration and expansion of scope of the Road Infrastructure Tax Credit Scheme (RITCS).
MHP will deliver up to 300,000 homes every year. Young professionals and artisans will organise themselves into small and medium scale co-operative businesses within the construction industry to develop these houses, which will be based on a set of standardized designs. This programme will also prioritize the use of local labour and materials. Doors, windows and other materials will be produced, finished or assembled at mass housing construction sites.
This targets 5 million households, serving about 25 million individual Nigerians who are currently not connected to the National Grid. Solar equipment manufacturers will be required to set up production facilities in Nigeria, to provide the materials required.
This will be done through a special intervention fund, as well as by tapping into an existing World Bank facility (REDISSE Programme), to support COVID-19 interventions in the States.
This will take the form of low-interest loans, and the easing of procedures for registration, licensing, obtaining permits, etc. Mechanics, tailors, artisans, petty traders and all other informal business people will be supported to grow their businesses.
This will take the form of payroll support to designated sectors so that they can keep their employees and help maintain jobs; and also loan restructuring and moratorium for existing debt. Also, low-interest loans to boost local manufacturing and production across critical sectors, including but not limited to the pharmaceutical, aviation, hotels and the hospitality industry, private schools, road transportation, technology companies, and the creative industry, amongst others. A Guaranteed Offtake Scheme for MSMEs will function by making government a key purchaser of specific priority products made by MSMEs, like PPE, face masks, face-shields, processed food, pharmaceuticals, etc.
Underpinning the implementation of the NESP will be a focus on digital identification of every Nigerian. It is imperative that every Nigerian has a unique digital identity. The Public Works Programmes for example will, apart from the focus on providing employment, also help advance the financial inclusion and digital identification agenda. Broadband connectivity will also receive a boost, helping to create jobs and opportunities especially for young people. Also, a national programme will be launched to identify and create job opportunities in digital outsourcing.
The implementation of the NESP will see an increase in the number of cash transfer beneficiaries, N-Power volunteers and sundry traders enjoying small and micro loans through the MarketMoni and TraderMoni schemes. The pre-existing conditional cash transfer will also be extended to cover a larger number of extremely poor and vulnerable Nigerians.
The President has approved the implementation of the Report on the Rationalization of government agencies. The NESP will also target a reduction in average production costs of crude oil. Also, the Integrated Personnel and Payment Information System (IPPIS) will be expanded to cover all Federal Government MDAs. Non-critical and administrative capital spending will be eliminated, including purchase of vehicles (except for ambulances, fire-fighting vehicles and other essentials).
The NESP offers opportunities for State Governments to collaborate with the Federal Government on Affordable Mass Housing, Agriculture, Off-Grid Power Projects and other projects in the Plan. It also provides for the negotiation of suspension of ISPO payments by States, moratorium on deductions in respect of bailout loans, and encourages States to attain the conditions outlined by SIFTAS and other World Bank programmes, in order to access external support.
The ESC will also monitor implementation of the Plan while the Vice President will regularly brief the President on progress made.

Femi Adesina
Special Adviser to the President
(Media and Publicity)
June 25, 2020

What do you think?

Written by staff


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  1. These are laudable proposals and futuristic in his entirety. The plan if fully implemented will bring about the desire goals and enable the emancipation of the citizens. What we should not forget is the most important aspect of the project, that is the human capital. For it to work effectively, the people has to buy into it. Hence, the need for the government to plan mass information process with the citizenry at the core of the information process. Looking from afar, our people are not daunted by commitments, but with the issue of durability. Hence, there is a need to build endurance as a new culture of existence which links achievement to effort by minimizing the importance of riches and promoting accomplishments. That is to say, a return to the old value system with progress and national development at the helm. With these plans, we wont be talking of figures but rather achievements.
    There are many ways of achieving this, the primary being the indoctrination of core participants, hence, the minimization of external influence and above all the supervision of a lion guarded national assets in the domain of secrecy and national orientation. An embedded national directives that will prevent the altering of the trajectory as enshrined in the national development goal. And, above all, the formation of foot soldiers determinedly protective of the nation and its achievements including articulated cyber security. Our cyber space is to be crucially monitored for interference as the new warfare of social minimization ensues. As a devoted Nigerian, I want a future that will work for my children, grand children and great grand children. A future that will nurture those who will be able to raise their heads and think and work for Nigeria. Those who will believe in common destiny have confidence in their own ability and trust in their nation. Those who will believe that there will never be anywhere better for them than Nigeria, and finally those who will want to conquer their deficit and make Africa their continent. I commend the government for initiating these developmental goals, as this where our future lies. We should go all the way to ensuring that the objectives of the plans are achieved come what may. I will commit myself to it. And as said, the people has to be at its core. It is now important to find a medium to re-energizing the people towards these achievements. We have to start believing in ourselves and works only with external partners that belief in us while refusing all aspects of subordination. May the God almighty make this a new beginning for our nation and help prevent the instruments of devil and denigration from having access to our desires and dreams. God bless the federal republic of Nigeria.

  2. Greetings dear Mr femi Adesina. I want to appreciate your tenacity of purpose and resilience in the discharge of your national assignment. God bless you. There is an issue I need to bring to your notice in which you and your PRINCIPAL may need to ponder upon and take requisite action. It has to do with one of the founding fathers of modern Nigeria professor Eyo ITA. Many public institutions have been named after people who did not in any way fight for our independence from Britain at the expense of our freedom fighters like Prof Eyo ITA. This man happen to be a contemporary of the great ZIK of Africa. He was a scholar, educationist, administrator and a politician( Check out Wikipedia). He was the leader of government business (premier) of the old Eastern region of NIGERIA before being schemed out by ZIK through dirty tribal politicking. Now to the Crux of the matter. It will be good for THE UNIVERSITY OF CALABAR TO BE NAMED AFTER HIM. Thus…EYO ITA UNIVERSITY, CALABAR. I am an alumnus of Unical for more than thirty years and I am not making this request with ulterior motives. The country must needs honour this man though now late. We must always honour our heroes when they are alive. We don’t need to wait for Gowon to die before naming University of Jos after him. A word is enough for the wise. Amos Umoren

  3. Payment of contractor debt should also be integrated into NESP

    The NESP is a laudable initiative but there is a missing link which is, the payment of contractor debts. I know a particular company/contractor who the government was owing about #16.7million since 2013 for a project duly executed. Kudos to this government, he was paid #4milliion in June 2016 after the project was re-verified. This is 2020, his balance of over #16million is still outstanding.

    Now, should he go to CBN and borrow to save his business from collapse or should he be paid what he is being owed by government after 7years?

    Please, the drafters of the NESP should take note that there are businesses the government is owing and the owners of those businesses are going through tough times economically. Some of them have died because of the debts, others are on sick bed and others are facing serious hardship. It shouldn’t be an offense or death sentence for medium or small business owners to do business with government.

    The ministry of finance has the list of all these companies because verifications have been done and list compiled since 2017. Initially, the government said it will be paying those owed less than #10million. Has it finished paying them? When will it start paying those it is owing between #10million and #20million or more?

    Please let the government look into the plight of these contractors and include their payment in its economic sustainability plan because its the right thing to do.

    Thank you.

    Mfon Offiong

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