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#MP2013 Presentation by the Minister of Finance, Dr. Ngozi Okonjo-Iweala
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DR. NGOZI OKONJO-IWEALA
Coordinating Minister for the Economy &
Hon. Minister of Finance
And
Dr. Yerima Ngama
Hon. Minister of State of Finance
June 10, 2013
MINISTERIAL
PLATFORM:
FEDERAL MINISTRY OF FINANCE
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Mission Statement
To manage the Nationâs finances in an
open, transparent, accountable and
efficient manner that delivers on the
countryâs development priorities
Mission Statement
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Ministry of Finance: Key Objectives
2
Support
for Job
Creation
Macro
Economic
Management
Mobilizing
Finances
for Real
Sector
Activities
Supporting
Enabling
Reforms
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âą Dollar exchange rate has been between âŠ155 and âŠ160 over the last
two years
Exchange Rate is Stable
âą Inflation rate has slowed to 9.1% from 12.4% in May 2011
Rate of Inflation is Coming Down
âą From $32.08 billion in May 2011 to $48.4 billion as of May 2013
âą Excess Crude Account (ECA) - (Component of External Reserves)
- Rise from about $4 Billion in May 2011 to around $9 billion at the
end of 2012, but now about $6 billion in May 2013
- ECA now helping us since oil production has fallen from the
projected 2.53 million bpd to between 2.1 â 2.2 million bpd
External Reserves are Rising
7
MACRO ECONOMIC MANAGEMENT
The Economy is Strong but Faces Challenges of
Inequality & Inclusion
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MACRO ECONOMIC MANAGEMENT
Projected GDP Growth (%) 2013
Sub Saharan Africa 5.6
Emerging Markets 4.2
Major Economies (G7) 1.2
South Africa 2.8
Brazil 3.0
China 8.0
Russia 3.4
India 5.7
âą GDP growth in 2013 projected at 6.75% (NBS) and 7.2% (IMF)
GDP Growth is one of the fastest in the World
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1 Footnote
SOURCE: Nigeria Sovereign Wealth Investment Authority; Federal Ministry of Finance
US$1 billion
earmarked for
investment in the
3 arms i.e.
Stability Fund,
Infrastructure
Fund and Future
Generation Fund
Management
team has
developed a
comprehensive
strategy
document which
was presented at
its inaugural
board meeting on
13th November
2012
The NSIA to
commence core
investing activities
from Q2 2013 and
currently evaluating
potential
infrastructure
investment
opportunities
1
The Board of the
Nigeria Sovereign
Investment
Authority was
Inaugurated on
9th October, 2012
2
3 4
Sovereign Wealth Fund is in PlaceâŠ
President Jonathanâs Administration believes that putting aside
some money for emergencies is important just as we all do for
our families. So this administration has supported a policy of
savings
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MACRO ECONOMIC MANAGEMENT
The 2013 budget prepared in record time and
passed on 20th December 2012
This provides the Government 12 months
expenditure program and time to spend the
funds
This also provides a boost to domestic and
international confidence in the countryâs fiscal
management
Breaking the Budget Jinx
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âą Policy is to reduce recurrent expenditure and complete unfinished capital
projects
- Recurrent expenditure has dropped from 74.4% of total budget in 2011 to
68.7% in 2013
âą Envelop system developed to enable Ministers prioritize uncompleted capital
projects
Cost of Government is Reducing
âą Government focusing on sectoral waivers rather than individual. e.g.
agricultural, power, aircraft spare parts, solid minerals at zero duty
Waiver and Tariff Policies have Changed
âą Imports are down (textiles, plastic & rubber, paper & paper making material),
and exports are up (plastic & rubber, vegetable products, prepared food stuff
and beverages).
- Non-oil exports have increased from 9% of total exports in 2008 to 31% in
2012
- Oil exports are now 69% of total exports, compared to 91% in 2008
Trade has Improved
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MACRO ECONOMIC MANAGEMENT
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Government Borrowing is Declining:
Total
Debt
Stock
Flow of
Domestic
Borrowing
Note: Domestic and External Debt Stock figures for 2013 are as at end of March 2013)
SOURCE: Debt Management Office
DomesticExternal
200
524
852 744 588
1,360
155107
1,753 2,170 2,320 3,239
4,552
5,623 6,346 6,493427
585
488
450
683
978
888
Debt/GDP
Ratio (%)
Our National Debt is Low
1041
11.9% 12.6% 11.6% 15.4% 17.3% 18.2%15.4%
2006 2007 2008 2009 2010 2011 2012 2013
21%
South
Africa 42.7%
Sub-Saharan
Africa 34.2% USA 106% Japan 225% UK 90%
MACRO ECONOMIC MANAGEMENT
Total Debt is âŠ7.5 trillion
External Debt is US$6.6bn (âŠ1.04 trillion)
NGN, Billions
Slowed Down Growth of Debt Stock:
YEAR
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Tax Type
Petroleum
Profit Tax
% increase
in non-oil
Taxes
- 39.2% 27.5%
SOURCE: Federal Inland Revenue Service
Non-Oil
Taxes
Total
Taxes
1,866 1,847 2,972
38.1% 14.6%8.0%
2,198 4,628 5,0072,839
939
3,2013,071
1,480
2,061
1,1321,353
514
715
911
1,806
1,558
1,3591,258
16.0%
NGN, Billions
2006 2007 2008 2009 2010 2011 2012
Increasing Revenue Receipts
MACRO ECONOMIC MANAGEMENT
YEAR
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Measures Taken
Next steps: Intensify drive to improve non-oil tax revenues
Compliance &
Enforcement
âȘ Recovery of tax arrears in the sum on âŠ704.8 million
âȘ Tax investigation and enforcement activities led to the recovery of
over âŠ10.65 billion
Tax Policies &
Legislative
Issues
B âȘ National Tax policy formally launched by Mr. President in April 2012
âȘ Nigeria /Mauritius Double Taxation Agreement (DTA) signed in
August 2012
Modernization
of Tax
Administration
& Operation
C âȘ Commenced implementation of the Integrated Tax Administration
System (ITAS) project
âȘ Registered 227,140 new taxpayers in 2012
âȘ Implemented full taxpayer segmentation
âȘ Full restructuring of Tax offices nationwide
âȘ Roll-out nationwide Tax Identification Number
A
Increasing Non-oil Revenues (Measures taken to Improve Non-oil Revenues)
MACRO ECONOMIC MANAGEMENT
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1 Total collections between Jan and Oct 2012, compared to the same period in 2011
SOURCE: Nigerian Customs Service
Federal
Collections
Total
Collections
345 413 470
Non-
Federal
Collections
Annual
increase
(%)
â 19.8% 13.9%
514 742547
9.2% 35.7% 9%6.4%
190
239
275 304 318
431 436
155 175 196 210 229
311 297
7321
2006 2007 2008 2009 2010 2011 2012
NGN, Billions
Increasing Revenue Receipts: Improvement in Customs Revenue
MACRO ECONOMIC MANAGEMENT
YEAR
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Measures Taken
âȘ Upgrade of the ASYCUDA system to version 3.0
âȘ Integration of Customs Operation (Platform) through a
portal named Nigeria Integrated Customs Information
Systems (NICIS) thus eliminating multiple submission
of cargo and goods documentation to several
stakeholders e.g. Bank, CBN, Freight Companies, etc
Deployment
of ICT
âȘ Online real-time processing of Customâs
documents/manifest by shipping/airlines
âȘ Simplification and harmonization of Customs clearance
procedures, in line with international best practice
âȘ Electronic tracking and auditing of Customs operations
and transaction
Trade
Facilitation
âȘ Disbanded hinterland Customs Check points and
outlawed duplicity in cargo examination by Agencies at
the ports
âȘ Anti-smuggling efforts
âȘ Training, Training school etc
Stepping up
Anti-Smuggling
Activities
C
B
A
Measures Taken to Improve Customs Performance
MACRO ECONOMIC MANAGEMENT
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Expenditure Side Measures Taken
Introduction of the Government Integrated Financial Management and
Information System (GIFMIS) in April 2012.
âą GIFMIS is aimed at improving the acquisition, allocation, utilization and
conservation of public financial resources using automated and integrated,
effective, efficient and economic information systems.
âą 58% of the budget now executed through GIFMIS. Will rise to 79% by end of
third quarter 2013.
Treasury Single Account (TSA) is a unified structure of government
bank accounts that gives a consolidated view of the cash position.
âą 93 MDAs are currently on TSA
âą Governmentâs overdrawn position has dropped from âŠ102 billion in 2011
to âŠ19 billion in 2012
The Integrated Payroll and Personnel Information System (IPPIS):
âą Enhances efficient personnel cost planning and budgeting as personnel cost
will be based on actual verified numbers and not estimates
âą 215 MDAs (153,019 staff) are on IPPIS as at Jan 2013
âą Savings on Payroll cost to date is âŠ118.9 billion
âą Work ongoing to bring in other 321 MDAs not yet on IPPIS
âą About 46,821 ghost workers identified
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Government Has Put In Place Systems To Increase Efficiency In
Public Financial Management
IPPIS
GIFMIS
TSA
MACRO ECONOMIC MANAGEMENT
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A New Petroleum Subsidy Payment Regime Is In Place
To Help Stem Leakages
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âŠRevised Process (2-step audit process)Old ProcessâŠ
Marketer Paid
Auditor: Witnesses
physical discharge
Physical verification
ï§ Quantity discharged
ï§ Claim to be paid
Auditor #1: Witnesses
physical discharge
Physical verification
ï§ Quantity discharged
Auditor #2:
Fiscal verification
âą We audited âŠ1 trillion in subsidy and found âŠ232 billion questionable. So
far, we have recovered about âŠ14 billion. We have tightened the payment
process
âą PPPRA reduced the number of oil marketers from 143 to 32
Marketer Paid
MACRO ECONOMIC MANAGEMENT
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Contributory Pension Scheme Is Sound But Defined Benefits
Scheme Is Being Reformed To Prevent Fraud
Background
Objectives
âą The Federal Government Defined Pension Scheme is decentralized and managed
by several pension offices/department and is inconsistent with the intention of
the Pensions Reform Act (2007)
âą The Pensions Reform Act (2007) establishes a pension department known as
Pensions Transitional Arrangement Department (PTAD) to oversee the
management of pensions under the Defined Benefits Scheme for pensioners not
transiting to the Contributory Pensions Scheme
âą Following Mr. Presidentâs directive to ensure strict compliance with the
provisions of the Pensions Reform Act (2007), the CME/HMF inaugurated
an Inter-Ministerial Committee in August 2012 headed by the Director-General
Pensions Commission (PenCom) to carry out Mr. Presidentâs instruction
âą The Inter-Ministerial task was structured into two phases:
o Phase One: Design the governance and operating framework for the
PTAD
o Phase Two: Data validation and authentication of the existing pensioners
database and the development of an authentic database
Key
Achievements
âą Phase one completed and Phase Two is underway
âą Result: All Defined Benefit Pension Systems for Civil Service, Police,
Prisons, Immigration, Customs etc. will be managed in one
department reporting to Ministry of Finance with direct payment to
beneficiaries based on biometrics
Defined Benefits Scheme:
MACRO ECONOMIC MANAGEMENT
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âą Ratings by international agencies like Fitch, Standard & Poorâs, and
Moodyâs have improved to BB- (or equivalent)
âą As a result, Nigerian corporates are able to borrow at cheaper rates on the
international credit markets
âą A number of our banks have gone to raise funds abroad e.g. Access Bank
($350 million Euro Bond), GTB ($350 million Euro Bond), Fidelity Bank
($300 million Euro Bond)
Nigeriaâs Credit Ratings Have Improved
âą Domestic bonds included in JP Morgan and Barclays emerging market
Index
âą About $7 Billion invested in Nigeria by foreign investors in 2012
âą Nigeria has become the highest investment destination in Africa
International Investors are More Interested in Nigeria
Strong Economic Performance Has Received International Validation
MACRO ECONOMIC MANAGEMENT
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Of the FGâs âŠ180 billion budgeted for the 2012 SURE-P, âŠ86.5 billion was spent. The remaining
balance of âŠ93.5 billion was carried over into the 2013 SURE-P budget bringing its sum to about
âŠ273.5 billion in projected expenditure.
Subsidy Reinvestment Program (SURE-P)
S/N Classification/Projects
2012
(Annual Budget,
Nâ Bns)
2013
(Annual Budget
Nâ Bns)
A SOCIAL SAFETY NETS (e.g. Maternal & Child Health,
Mass Transit, Community Services, Graduate
Internship Scheme)
38.44 40.83
B NIGER DELTA Augmentation for East-West Road
(Sections 1-4)
21.70 42.27
C WORKS (ROADS & BRIDGES) (e.g. Abuja-Lokoja
Road, Kano-Maiduguri, Oweto Bridge)
85.50 111.50
D TRANSPORT (RAIL) (e.g. Lagos-Kano, Port-Harcourt
- Maiduguri)
33.36 77.42
E OTHER EXPENSES (e.g. SURE-P Board, M&E) 1 1.5
180.00 273.52
Breakdown of FGN SURE-P Budget
Subsidy Savings 2012 2013 (Jan â May)
Federal Government âŠ180 Billion âŠ75 Billion
States Government âŠ154.6 Billion âŠ64.4 Billion
Local Government Councils âŠ76.4 Billion âŠ31.8 billion
MACRO ECONOMIC MANAGEMENT
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Developing the Nigerian Financial Systems
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MACRO ECONOMIC MANAGEMENT
FAAC
B
Clean-up of the
Banking system
& Reforming DFIs
Exports
Expansion
Grants (EEG)
A
D
E
Reviving the
Nigerian Capital
Market
C
Boosting the
Insurance
Sector
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Government Has Been Reforming The Financial SectorâŠ
Cleanup of the Banking
System CompleteâŠ
Government Policies have
Supported Capital
Markets (e.g.
Forbearance, Elimination
of VAT & Stamp Duties,
etc.)
âą As a result, capital markets
has now reboundedâŠ
âą Stock market index has risen
by 71% since May 2012
âą Stock market capitalization
(value of listed companies)
has increase by 66.2% since
May 2012 to âŠ11.8 trillion
âą Through government policies
(e.g. introduction of micro-
insurance, compliance with
compulsory insurance, etc.)
more Nigerians are now aware
of Insurance Policies
âą Number of policy holders has
also increased from 700,000 in
2010 to 1.5 million in 2012
âą Claims paid increased from
âŠ37 billion in 2010 to âŠ52
billion in 2012
âą All 22 banks are now fully
stable and capitalized
âą Non-Performing Loans have
fallen to about 5%
âą But not enough lending is
going on at affordable interest
rates so the government is:
ïŒRestructuring existing DFIs to
get in private sector capital
ïŒCreating a new wholesale DFI
for 10-15 year money at
affordable rates
Insurance Sector is
Doing BetterâŠ..
MACRO ECONOMIC MANAGEMENT
A B C
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Federation Accounts Allocation Committee (FAAC)D
MACRO ECONOMIC MANAGEMENT
ï§ FAAC meeting for the past 4 months held
before the 14th of each month
ï§ All tiers of Government get their account
credited latest on 17th day of the month.
ï§ Salaries are paid to Federal Government
staff on time
ï§ This has brought some relative measure of
employee satisfaction and industrial
harmony
FAAC has served as an avenue for:
ï§ Correcting misconceptions and the
resolution of long standing problems
ï§ Peer review amongst States
ï§ Adopting best practices and learning from
the experiences of one another
Improved flow of revenues ⊠Problem Solving.
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Exports Expansion Grant (EEG): Summary of
Performance of Exporters
Eligibility Criteria Threshold % Better than
Threshold 2006
% Better than
Threshold 2011
Value Addition 20% 40.88% 48.50%
Export Growth 10% 31.36% 71.82%
Capital Investment
Growth
10% 46.37% 68.90%
Employment 500 32.04% 38.56%
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MACRO ECONOMIC MANAGEMENT
E
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Agriculture
Federal Ministry of Finance
âȘ âŠ30 billion credit risk guarantee to Nigeriaâs commercial banks to support
the supply of fertilizers and seed by the private sector
World Bank
âȘ US$ 200 million to support the ATA for staple crop processing in the six
geo-political zones
âȘ US$ 300 million support to Fadama and commercial agriculture
China Exim Bank
âȘ US$ 500 million importing 18 cassava processing mills and 40 rice
processing units (under discussions)
âȘ US$ 75 million Rural Access and Mobility project
Environment World Bank
âȘ US$450 million â Erosion & Watershed Management in Abia,
Anambra, Cross River, Ebonyi, Enugu, Imo and Edo states
âȘ US$120 million â Flood and Waste management, Oyo state
MOBILIZING FINANCES FOR REAL SECTOR ACTIVITIES
The Ministry negotiated the following financing agreements
totalling ~US$12 billion to support the real sector â (1)
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Transport
Federal Ministry of Finance
âȘ US$4 billion â Letter of comfort to support
investment in the Lekki Deep Sea port
Water
World Bank
âȘ US$200 million â Water Reform Phase III Nationwide
âȘ US$120 million â Urban Water Supply in Cross River
Islamic Development Bank
âȘ US$136.34 million â Zaria Regional Water Supply
âȘ US$50 million Dam project for water Supply & Irrigation in
Osun state
African Development Bank
âȘ US$81.32 million â Zaria Regional Water Supply
âȘ US$200 million Rivers State Water Supply Project
MOBILIZING FINANCES FOR REAL SECTOR ACTIVITIES
The Ministry negotiated the following financing agreements
totalling ~US$12 billion to support the real sector â (2)
African Development Bank
âȘ âŠ50 billion (~US$ 330 million) for the construction of
the East-West Highway
Niger Delta
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The Ministry negotiated the following financing agreements totalling
~US$12 billion to support the real sector â (3)
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MOBILIZING FINANCES FOR REAL SECTOR ACTIVITIES
World Bank
âȘ US$50 million â State Health Program Investment Credit
(Ondo, Nasarawa & Adamawa)
âȘ US$95 million â Polio Eradication Project Nationwide
Islamic Development Bank
âȘ US$44.69 million â Upgrading of Hospital Facilities in
Kaduna
Health
Federal Ministry of Finance
âȘ US$ 1 billion Eurobond (including US$600 million for Gas to
Power) to be launched
World Bank
âȘ US$ 1 billion IBRD Partial Risk Guarantee (under
discussion)
China Exim Bank
âȘ US$765 million Zungeru Hydroelectric Power Project
Islamic Development Bank
âȘ US$54.5 million Zungeru Hydroelectric Power Project
Power
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The Ministry negotiated the following financing agreements
totalling ~US$12 billion to support the real sector â (4)
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MOBILIZING FINANCES FOR REAL SECTOR ACTIVITIES
World Bank
âȘ US$150 million â State Education Program Investment
Project (Bauchi, Ekiti & Anambra)
Islamic Development Bank
âȘ US$17.32 million for science secondary schools in
Kaduna State
âȘ US$70 million to improve and enhance Bilingual
Educational Support
Education
China Exim Bank
âȘ US$100 million â National Information and
Communication Infrastructure Backbone (Galaxy
Backbone)
ICT
World Bank
âȘ US$250 million â Youth Employment and Social
Support Operation (YESSO)
âȘ US$140 million â Growth and Employment Support
Project
âȘ US$200 million â State Employment and
Expenditure For Result Project
Job
creation
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The Ministry negotiated the following financing agreements
totalling ~US$12 billion to support the real sector â (5)
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MOBILIZING FINANCES FOR REAL SECTOR ACTIVITIES
Federal Ministry of Finance
âȘ Working with CBN on use of intervention fund for purchase
of new aircraft to be passed to private sector and repaid
China Exim Bank
âȘ US$500 million 5 new airport terminals in Abuja, Kano,
Lagos, Enugu and Port-Harcourt
Aviation
World Bank
âȘ US$300 million Housing Liquidity Facility
China Exim Bank
âȘ US$500 million for the Abuja Light Rail ProjectFCT
Housing
China Exim Bank
âȘ US$200 million for various roads (under construction)
World Bank
âȘ US$80 million for second Niger bridge
Works
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ï§ To address two key issues:
ï§ Mainstreaming government efforts to improve the lives of girls and
women in Nigeria into the budgeting process
ï§ Linking funding release to concrete results delivery for these girls
and women, with the 2013 budgeting process as pilot.
ï§ Three Technical Working Sessions and a program design workshop with the
focal points in the pilot MDAs and civil society partners have been held -
develop work plans, budgets and implementation modalities at the state, local
government, community and ward levels.
ï§ Ministry of Agriculture has since March trained 350 in fishery farming - 70
from each five geo-political zones.
ï§ Ministry of Communications Technology made the initiative the focus of its ICT
Day in April and provided 35 students and seven teachers with laptops.
ï§ The Ministry of Health for its VVF target has initiated the acquisition and
upgrading of existing fistula centres in Ebonyi and Katina states as a key step
to scaling up the numbers of girls to receive the corrective surgery.
ï§ Ministry of Works has signed MoUs with three private contractor firms who
have pledged to support women subcontractors in their road contracts.
.
Support to Women Empowerment
Background
Progress to
Date
MOBILIZING FINANCES FOR REAL SECTOR ACTIVITIES
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MOBILIZING FINANCES FOR REAL SECTOR ACTIVITIES
âȘ NEXIM being retooled to enhance support to the non-oil export sector
âȘ Reforming the Export Expansion Grant (EEG) Scheme to better target critical
priority sectors and reduce cost of running scheme
âȘ Total disbursement of âŠ7.3 billion in 2012 in support of non-oil exporters,
leading to creation of 4,911 direct jobs and foreign exchange generation of
about US$58 million annually on full implementation of the projects
Support to
the Non-oil
Sector
Regional
Integration
âȘ The ECOWAS Trade Support Facility has been introduced to enhance export
credit to small traders, formalize trade and deepen payment system in the
West African sub-region. NEXIM dedicated a seed fund of âŠ500 million, with
âŠ268m approvals granted and âŠ170m already disbursed.
âȘ Financing Regional Sealink Project to establish a dedicated regional shipping
company which will mitigate the issue of high transportation cost and
excessive transit time in West and Central Africa. The project is expected to
cost between US$60 â 100 million.
Fostering
Partnerships
âȘ Strengthening relationships with other EXIM Banks to attract investment
capital. NEXIM has credit lines with the Export-Import Bank of India and the
Africa Export Import Bank, while discussion have reached advanced stage
with EXIM Bank of Turkey
Financing International Trade and Regional Integration
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Port Reforms in conjunction with the Ministry of Transport,
Works, Presidency and the Lagos state Government
I
2,080 TEU
overtime
containers
transferred to
Ikorodu Lighter
Terminal.
Ports operating
a 24-hour
regime for the
first-time since
1970..
Disbanded NCS
task force that
harass cargo on
the highway
Apapa-Oshodi
Expressway
cleared with FMW
rehabilitating the
roads
Reduced the
number of
agencies
operating in the
ports from 14 to
7.
II III IV V
Clearing time reduced from 39 days to 7 days for trouble-free cargo, but target is 48 hours!
A
SUPPORTING ENABLING REFORMS
We had achieved the following âŠ
BUT !
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B Support to Other Sectors: Power
SUPPORTING ENABLING REFORMS
Key Measures
Chair of the board of the National Bulk Electricity Trader
(NBET) and National Electricity Liability Management
Company (NELMCO)
Signing of letters of comfort, PPAs etc
Negotiated Guarantees
Solving financial problems and paying
off PHCN
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C Support to Other Sectors: Housing
SUPPORTING ENABLING REFORMS
Mortgage Refinance Company (MRC) has
been proposed to assist in resolving
financing gapHousing Finance: the challenges
âȘ Nigeria needs to add 23 million homes
by 2020 to meet supply gap i.e. 2.6
million homes per year
âȘ The MRC will be a Public-Private Partnership
(PPP) arrangement with shareholders that
will include: Government, International DFIs
9IFC, Shelter Afrique etc), Nigerian Banks,
Primary Mortgage Institutions (PMIs),
Insurance Companies and Private Equity
investors
âȘ Capital Structure of the MRC will comprise of:
âȘ Take off capital of NGN5 billion, 10% of
which would be invested by
Government via Preference Shares
âȘ Initial debt financing of US$300 million
from FGN via a concessional long term,
non-interest credit from the World Bank
âȘ Upon establishing a track record, the
MRC will access the capital market to
raise funds via bond issues
âȘ FGN credit to be disbursed to MRC in
Naira; CBN to bear FX risk
âȘ Currently there are 20,000 mortgages
in Nigeria â Target of 200,000 mortgages
in the next 5 years
âȘ Challenges faced by the housing
industry are multi-sectoral:
âȘ Financing hurdle to be tackled with
Mortgage Refinance Company
âȘ Additional challenges also being
tacked concurrently
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D Support to Other Sectors: Sports and Manufacturing
SUPPORTING ENABLING REFORMS
Sports
ï§ Examining innovative
ways of financing
sector through
lotteries and private
sector franchising
Manufacturing
ï§ Stoppage of multiple taxation
ï§ Fast track the completion of CET
book
ï§ Facilitate easier access to long
term financing
ï§ Tackling trade malpractices
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E Support to Other Sectors: Agriculture
SUPPORTING ENABLING REFORMS
Specific Measures
Introduced
Fiscal
incentives
to support
Rice and
Cassava
value chains
ï§ Zero duty on machinery and equipment to
process high-quality cassava flour
ï§ Corporate tax rebate of 12% for bakeries
attaining 40% substitution of wheat for
cassava
ï§ Effective duty of 50% (to be raised to
100% by December 2012) on imported
polished rice to encourage domestic
production
ï§ 100 percent duty on wheat flour from July
1, 2012
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SUPPORTING ENABLING REFORMS
Special Initiatives
Mr. President announced a âŠ3 billion grant program - Project
Advancing Creativity and Technology (ACT) Nollywood, to
encourage growth and stimulate job creation in Nigeriaâs
movie industry
The program aims to improve and promote key components
of the movie value chain through the provision of grants
schemes designed to support existing or aspiring practitioners
within the industry
Support to Other Sectors: Creative IndustriesG
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Youth Enterprise with Innovation in Nigeria
(YouWiN!) Program
YouWiN! Results
âą Trained 12,000 aspiring or existing young entrepreneurs.
âą Presently funding 1,200 entrepreneurs identified in the first round of the three round
competition
âą Identified 1,200 women in May 2013 across the six geopolitical zones to receive funding
in the second round
âą As at May, 2013, a total of 14,025 jobs have been created across the country in the early
stages of the first round. At least 80,000 jobs expected by the end of the third round in
2015.
REGION NO. OF JOBS
North-Central 2,552
North-East 1,616
North-West 2,159
South-East 2,280
South-South 2,119
South-West 3,299
Total 14,025
SECTOR NO. OF JOBS
Agriculture 4,113
ICT & Media 1,893
Manufacturing 3,698
Retail 698
Others 3,623
Total 14,025
Breakdown of Job Creation by Geo-Political Zone and Sector (as at May 2013)
SUPPORT FOR JOB CREATION
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COMMUNITY SERVICES SCHEME (CSS) &
GRADUATE INTERNSHIP SCHEME (GIS)
Community Services Scheme
âą 370,000 youth to be employed annually.
âą 178,000 Youth already employed.
Graduate Internship Scheme
âą Providing 50,000 graduates with internship in established
privates sector organizations
âą 1,306 graduates placed so far
SUPPORT FOR JOB CREATION