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What Osinbajo, Governors, Ministers agreed at National Economic Council Retreat

The National Economic Council retreat which began Monday, ended Tuesday.

The meeting had as theme: Nigerian States: Multiple Centres of Prosperity, and explored ways to respond to the nation’s current economy crisis.

A statement from the office of Vice President Yemi Osinbajo provides highlights of what was discussed and agreed at the retreat attended by Mr. Osinbajo, state governors and ministers.

The following are highlights of the retreat:

Agreement reached for concerted and consistent efforts to diversify revenue sources
Expand compliance on VAT, adopting a gradual plan for rate increase
Increase expenditure through borrowing, which should be invested in infrastructure
Federal and State Governments to focus on fiscal responsibility as a critical element in macro-economic balance
Increase investment in infrastructure through public private partnership (PPP)
Develop financial inclusion strategies to cater for the poor and vulnerable population
Maintain a minimum level of capital expenditure of 30% in the budget

Thematic Areas-Agriculture

The Federal Government to re-position Bank of Agriculture to enhance its capacity to finance agriculture.
Funding for Agricultural sector is considered critical and sources of intervention funding from the Central Bank of Nigeria should be considered
A single digit interest rate for agricultural loans should be considered while duties and taxes for Agricultural products and equipment should be waived
Develop strategic partnerships between Federal and State government. Each State should make specific commitments to crops in which it has comparative advantage and request Federal Government intervention
National targets for self-sufficiency should be set for identified crops, which should be monitored. Tomato paste – 2016, Rice – 2018, Wheat – 2019
The Federal and State Governments should roll out agricultural extension services nationwide
The Commodity Exchanges should be established for price regulation and avoidance of losses due to lack of markets. The Abuja Commodity Exchange should be revitalized
The National Agricultural Land Development Authority (NALDA) should be re-established
Federal Government should develop an Agriculture Implementation plan whereby State Governments are encouraged to identify at least two crops in which they have comparative advantage
States should open up of rural/feeder roads to facilitate transportation of agricultural produce to be supported by the Federal Government
The Federal and State Governments should establish minimum price guarantee for farm produce
The Federal Government should provide immediate funding to upscale efforts of Agricultural Institutes of Research and Development across Nigeria
State Governments should also be encouraged to fund research and development in agriculture through technical colleges, universities and research institutions

Thematic Area – Solid Mineral

Ministry of Solid Minerals Development to complete and present the solid minerals development road-map. This framework should address issues of illegal miner, licenses, taxes and royalties by 31^stMarch 2016

Federal government to engage with state government on the road-map and agree any amendment that may be required by 30^thJune 2016
Initiate relevant legislative changes that maybe necessitated by the agreed road-map by 31^stJuly 2016
Conclude the re-validation/re-certification of all mining leases by 30^thSeptember 2016
Agree with states and local government on respective responsibilities for developing feeder roads and other critical infrastructure for solid minerals development
Federal Government and States to set deadlines to achieve self-sufficiency in Bitumen/Asphalt and tiles (to discourage/stop importation)
Make and communicate final decisions on operationalization of Ajaokuta steel plant by 30^thJune 2016
Establishment of joint committee to address issues of data on quantity and quality of minerals exploited and exported
Setting up of mining cadastral zonal offices for proximity to States for the purpose of issuing licenses and easy monitoring by States
Discourage use of wood for cooking by promoting use of coal briquettes
Guarantee access to finance solid minerals development via intervention funds and private sector capital
Block revenue leakages in the sector through effective monitoring of activities in the mining sector
Organize artisan/small-scale miners as a mechanism for reducing illegal mining and Establish Mines Surveillance Task-force by September 2016

Thematic Area – Investment, Industrialization and Enabling Monetary policies

1.Ministry of Industry, Trade & Investment (MITI) to develop a matrix of actions to be taken by Federal and State Governments towards achieving the targeted improvements in Ease of Doing Business ranking by 30^th April 2016

Present an incentive scheme for States taking actions towards improvement of the investment climate in their States including grants by 30^thSeptember 2016
Forge strong links between the Nigeria Investment Promotion Commission (NIPC) and the State Investment Promotion Agencies
States to collaborate more actively on regional basis on investments and industrialization.

5 States to set up one-stop shop for investors where they do not currently exist to attract investment and improve on IGR Safeguard competitive market econom

6 Promote regional cooperation on investment and industrialization.

7 Implement institutional and structural reforms as a way of improving the efficacy of monetary policy including greater consultation with the National Economic Council

8 Predictability and consistency of the Central Bank of Nigeria’s communication to key stakeholders is required to manage expectations

9 The Central Bank of Nigeria should carry the States along in some of their reforms in areas of SMEs and Agricultural funding initiatives

10. Long-term development goals should anchor policy decision

11. Effective regulation & supervision to improve confidence in the soundness and stability of the banking system

Thematic Area – Infrastructure and Services

Develop infrastructure delivery plan considering current financial capabilities driven principally by the goal of improvement of the quality of life for the populace
Develop financing model for infrastructure projects
Integrate training and job creation components in infrastructure projects
Implement empowerment and entrepreneurship policies to foster inclusive growth

Thematic Area – Investing in our people

Federal and State Governments to work collaboratively to ensure sustainability of the school feeding and other social protection programmes
Cooperation from the States’ Ministries of Education and State Universal Basic Education Board (SUBEBs) for the Teacher Corp program
Provide logistics support on the proposed upgrade of 75 existing National Directorate of Employment (NDE) facilities (across the various States) to Empowerment Centers
Cooperation and coordination with the States on their specific job creation efforts
State Government support on identified needs such as infrastructure and/or space for innovation hubs
State Government support for artisan training, scoping and support for existing artisan cultures, use of existing training facilities

Institutionalize a single register as a platform for targeting the authentic poorest and vulnerable for safety net programs; for government, donor agency, organizations or individuals
Creating a delivery mechanism that ensures efficient, consistent timely and direct payments in the remotest parts of the country
Boost productivity and financial inclusion for the poorest and most vulnerable

Thematic Area – Revenue Generation and Fiscal Stability

There is need for deliberate effort to generate relevant data on the respective economies of the states and the nation generally in order to drive revenue generation
FIRS and SIRS need to invest in relevant technology to support efforts to improve tax collection
There is a need to develop incentive schemes for federal and state revenue generating agencies
FIRS and SIRS need to actively collaborate on initiatives to improve tax collection, including joint audits of major corporate tax payers
All state governments are encouraged to establish efficiency units to review/enhance the quality of expenditure as well as plug revenue leakages
Focus on property and consumption taxes will help in improving revenues in a fair manner
Tax-payer education should be intensified to expand the tax base and avoid political back-lash from intensifying tax collection
State Government are encouraged to rationalize number of Ministers, Commissioners and Permanent Secretaries
Cost control measures should be identified and implemented on an ongoing basis; in this regard various examples from Nigeria and other countries are recommended

Thematic Area – Survival of States and Beyond

Strengthen States Peer Review Mechanism under auspices of the Governors Forum and the National Economic Council (NEC) to promote sharing of good practices between the Federal and States Governments

NEC RETREAT – IMPLEMENTATION STEERING COMMITTEE FORMED:

To oversee the work of the implementation committee
To provide appropriate steers to the Implementation Monitoring Committee to ensure that the resolutions agreed at the retreat are duly followed up

Chairman

Yemi Osinbajo, Vice President and Chairman of NEC

Members

Abdulaziz Y. Abubakar, Chairman, Nigeria Governors Forum and Governor of Zamfara State

Adams Oshiomhole, Governor of Edo State

Abdulfatah Ahmed, Governor of Kwara State

Rauf Aregbesola, Governor of Osun State

David Umahi, Governor of Ebonyi State

Badaru Abubakar, Governor of Jigawa State

Mohammed Abubakar, Governor of Bauchi State

Udoma Udo Udoma, Minister of Budget and National Planning

Kemi Adeosun, Minister of Finance

Okechukwu Enelama, Minister of Industry, Trade and Investment

Audu Ogbe, Minister of Agriculture

Kayode Fayemi, Minister of Solid Minerals

Babatunde Fashola, Minister of Works, Power and Housing

Secretary

Nana F Mede, Permanent Secretary, Ministry of Budget and National Planning

NEC RETREAT – IMPLEMENTATION MONITORING COMMITTEE FORMED

To follow up the implementation of the resolutions of the retreat
To receive steers from the Steering Committee regarding the follow up of the implementation
To provide progress reports to the Steering Committee on the implementation

Chairperson

Zainab S. Ahmed, Minister of State, Budget and National Planning

Members

Yosola Akinbi, Senior Technical Adviser to the Vice President on the National Economic Council

L.O.T. Shittu, DG, Nigeria Governors Forum

David Olofu, Commissioner for Finance and Planning, Benue State

Mohammed Kauji, Commissioner for Finance and Economic Planning, Borno State

E.A. Onwiodokif, Comm. for Economic Planning, Akwa Ibom State

Aisha M. Bello, Comm. for Budget and Planning, Kano State

Aderenle Adesina, Commissioner for Budget and Planning, Ogun State

Mark Okoye, Special Adviser, Economic Planning and Budget, Anambra State

Tunde Lawal, Director, Macroeconomic Analysis Department, Fed. Min. BNP