Nigeria’s Economy Has Been Stabilized For Growth – FG
The Federal Government at the weekend said that the nation’s economy has been stabilized and placed on the path of sustainable growth.
The Minister of Information and Culture, Alhaji Lai Mohammed, who disclosed this at a press conference in Lagos, said that the present administration from inception chose the path of seeking a lasting solution to the economic crisis plaguing the nation instead of engaging in a quick fix that may attract accolades but will not endure.
According to him, available statistics, international reports and indices reveal that the present administration has surpassed its economic target.
Mohammed said, “ I am happy to inform you today that we are winning! Our well-thought-out policy, encapsulated in the Administration’s Economic Recovery and Growth Plan (ERGP), launched on April 5th, 2017, is working and the results are beginning to show.
“In September, we exited recession and returned to the path of growth, after five consecutive quarters of contraction. As we said then, taking Nigeria out of recession did not happen by accident. It was the culmination of months of hard work by the Administration and fidelity to its well-articulated economic policies.
“To show that taking Nigeria out of recession was not a fluke, less than two months later, precisely 31st Oct. 2017, Nigerians got another good news: The country moved up 24 places, to 145th, in the World Bank’s ‘Doing Business’ report. Not only that, for the first time, the country is recognized as one of the top 10 most improved economies in the world. This is phenomenal. More importantly, it is the direct result of a well-articulated policy by this Administration.”
According to him, after the establishment of Presidential Enabling Business Environment Council (PEBEC) which is chaired by the Vice President, Yemi Osinbajo, by President Muhammadu Buhari in 2016, it took a significant step towards making it easier for Micro, Small and Medium Enterprises (MSMEs) to do business in the country.
The minister explained that PEBEC approved a 60-Day National Action Plan on the Ease of Doing Business with clear deliverables and timelines for the Ministries, Departments and Agencies (MDAs) responsible for implementing each line item in the plan.
“Remember that MSMEs, which account for almost half of Nigeria’s Gross Domestic Product (GDP), play a key role in the Nigerian economy and employ over 80 percent of the country’s labour force. Therefore, we look up to these enterprises to provide the endless possibilities for Nigeria’s economic growth. We know for sure that if the MSMEs blossom, Nigeria’s economy will thrive.
“This is what PEBEC set out to do, and the result is what you are seeing. Lest I forget, we even surpassed our target. We had hoped to move up 20 places. We beat that by four more to move up 24 places.
“As part of the administration’s efforts to improve Nigeria’s tax to GDP ratio, which currently sits at a paltry 6 percent – one of the lowest in the world – the administration has launched what is called the Nigerian Voluntary Asset and Income Declaration Scheme, or VAIDS.
“This provides a time-bound opportunity for taxpayers to regularize their tax status relating to previous tax periods and pay any taxes due. In exchange for fully and honestly declaring previously undisclosed assets and income, taxpayers will benefit from forgiveness of overdue interest and penalties, and the assurance of not facing criminal prosecution for tax offences or tax investigations. As of 31st Oct. 2017, VAIDS has raked in over 200 million Naira and 55 million US dollars.”
He pointed out that, “for eight consecutive months, headline inflation has been falling, while the foreign exchange reserves are up to $34 billion, from $24 billion a year ago; oil production is at nearly two million barrels per day, a significant improvement from 2016, when it was mostly below a million.
“The value of the Naira in the parallel market has appreciated significantly in recent times against the US dollar, and at about 1.8 billion dollars, the capital inflows in the second quarter of 2017 were almost double the $908 million in the first quarter.
“The bottom line is that as things continue to improve, Nigerians will begin to feel the impact in their daily lives. With the ongoing massive infrastructural development, especially in roads, railways and power, Nigerians will begin to get a new lease on life. Food prices will tumble. Businesses will thrive. More jobs will be created.
“This Administration will not relent in its determined effort to usher in a new dawn for Nigeria. We are winning the battle to revive the economy. We are fighting corruption like never before. We are tackling insecurity with a renewed vigour. While the naysayers, who are obviously in the minority, persist in their pastime of acting as a distraction, discerning and well-meaning Nigerians will continue to appreciate and encourage the good work of our Administration.”
Also speaking, the Senior Special Assistant to the President of Nigeria on Industry, Trade and Investment, Dr. Jumoke Oduwole said that the World Bank and other economic feats recorded this year was as result of concerted efforts by the federal government and stakeholders, working in close collaboration with the National Assembly, with state governments, particularly Lagos and Kano States, and private sectors.
She said that the reforms carried out by the government to ensure ease of doing business in the country helped to get the nation back to sound economic footing, saying some procedures that were making things difficult for SMEs had been simplified by the Corporate Affairs Commission (CAC).
Oduwole said, “Talk of paying taxes, we now have a lot of payment options with many tax payment points very near to the offices and residences. We also have the ability to take e-payment, e-filling and these are parts of the things the Federal Inland Revenue Service (FIRS) have been trying to promote more this year.”