FG launches Economic Recovery Plan; targets food security, improved electricity supply

The Federal Government of Nigeria has launched the Economic Recovery and Growth Plan (ERGP), a medium-term plan for 2017-2020.
The plan is broadly targeting restoration of growth, human development, globally competitive economy, tackling the current economic recession confronting the nation as well as ensuring economic diversification and inclusiveness.
According to the ERGP document released on Tuesday by the Ministry of Budget and National Planning, the policy and reform framework, demanded locally and internationally, to haul the economy out of recession and chalk out path to national development.
“This is aimed at increasing national productivity and achieving sustainable diversification of production, to significantly grow the economy and achieve maximum welfare for the citizens, beginning with food and energy security. This Plan is a pointer to the type of Nigeria that the people desire in the short to medium-term, and encourages the use of science, technology and innovation to drive growth.
“It also provides a blueprint for the type of foundation that needs to be laid for future generations, and focuses on building the capabilities of the youth of Nigeria to be able to take the country into the future.”
Broad Objectives
The ERGP has three main objectives of restoration of growth; investment in the people; and becoming a globally competitive economy.
To restore growth, the ERGP promises to focus on macroeconomic stability through fiscal stimulus, monetary stability and improved external balance of trade; and economic diversification by giving attention to agriculture, MSMEs, among others.
“The revival of these sectors, increased investment in other sectors, less reliance on foreign exchange for intermediate goods and raw materials and greater export orientation will improve macroeconomic conditions, restore growth in the short term and help to create jobs and bring about structural change,” ERGP stated.
To drive investment, the government said it would focus on social inclusion through targeted programmes that will enhance access and ensure support for the vulnerable adding that it would reduce regional inequalities, especially in the Niger Delta and the North East.
Further, the government also expressed commitment to job creation and human capital by investing in healthcare and education to fill the skills gap in the economy.
“The ERGP aims to tackle the obstacles hindering the competitiveness of Nigerian businesses, notably poor or non-existent infrastructural facilities and the difficult business environment,” stated the ERGP. “It will increase competitiveness by investing in infrastructure and improving the business.”
Outlook by 2020
The ERGP, the government said, is designed to achieve agricultural transformation and food security and make Nigeria become a net exporter of rice, cashew nuts, groundnuts, cassava and vegetable oil by 2020.
For tomato paste, rice and wheat, the government said it targeted self-sufficiency by 2017, 2018 and 2020 respectively.
It also aimed at achieving improved foreign exchange inflow, achieving 10 GW of power generation, becoming exporter of refined petroleum products, stable macroeconomic environment, infrastructural development and industrialised economy are other parts of the outlook Nigeria envisions come 2020.
Successive administrations have been coming out with growth plans, non has achieved the target objective, but the government said it would ensure implementation of the ERGP by tackling growth constraints like poor business environment; involving the private sector and allowing market function; promoting national cohesion, social inclusion and core values “that define the Nigerian society as enshrined in the 1999 Constitution, notably discipline, integrity, dignity of labour, social justice, religious tolerance, self-reliance and patriotism.”
According to Budget Ministry, “The vision of the ERGP is one of sustained inclusive growth. There is an urgent need as a nation to drive a structural economic transformation with an emphasis on improving both public and private sector efficiency”.
It was reported recently that inability of Nigeria to submit recovery and reform plan stalled the country’s bid for loan. The President of the African Development Bank (AfDB), Dr. Akinwunmi Adeshina was reportedly said the bank held back the last tranche of $1 billion loan for Nigeria because of that.
“We are waiting for the economic policy recovery programme and the policy framework for that,” Adeshina was quoted as saying, while explaining the reason for holding back last tranche of loan for Nigeria. This underscores the importance of the policy plan.