To raise oil production to 2.5 mbpd by 2020
•Expand tax base
•Privatise selected assets
•Present document to creditors by end of February 2017
THE Federal Government is to pursue implementation of a 59-point strategy to achieve the objectives of its Economic Recovery Growth Plan that will be launched in the next few weeks.
The document which has been finalised waiting for Federal Executive Council’s endorsement has twelve strategies that have been prioritised based on their importance to the success of the government recovery plan.
Those who are working on the document, said that the federal government intends to restore crude oil production to budget target of 2.2 million barrel per day and move from there to 2.5 million barrels per day by 2020. The Economic Recovery Growth plan also include privatisation of some federal government selected assets to raise the needed funds to implement the plan.
Those who drew up the plan said that Nigeria will accelerate non-oil revenue generation through expanding the tax base blocking leakages in tax avoidance and non-payment. The federal government plan comes into force to drastically cut cost and align monetary and fiscal policies. The government also during the plan period, will spend heavily to expand critical infrastructure especially power, roads and rail.
Another strategy in the recovery plan is government intention to revamp the four existing refineries to ensure local supply of petroleum products in order to conserve foreign exchange. It is also stated in the document that government intends to expand its social investment and deliver on agricultural transformation.
Government in its strategic plan will accelerate the implementation of National Industrial revolution plan using special economic zones and improving on ease of doing business in Nigeria. It will also focus on priority sectors in order to create jobs, promote exports, boost growth and upgrade skills.
Economic reform proposals
The federal government is putting in place the economic blue print in order to meet the conditions needed for it to borrow at least $1 billion from the World Bank to help pull the economy out of recession. It was learnt that the government plans to present the economic reform proposals to the World Bank and other creditors it seeks to borrow from.
The government now plans to present its econmic reform proposals by the end of February, according to government officials and Western diplomats who declined to be named as they are not authorised to speak publicly. One senior government official said Nigeria would seek a loan of $1 billion from the World Bank, while a second senior official said it could seek as much as $2 billion.
The Nigerian finance ministry declined to comment on the size of the loan being sought or the timing of the submission of the reform proposals. The World Bank also declined to comment on those matters. A spokeswoman said Nigeria’s economic proposals would be the “basis of which the World Bank will determine with the government the most appropriate lending instrument to support the implementation of the reform plan.
Nigeria will present its economic proposals to the AfDB at the same time as the World Bank, according to the government officials.