Home Governance FEDERAL EXECUTIVE COUNCIL APPROVES NIGERIA’S ECONOMIC SUSTAINABILITY PLAN

FEDERAL EXECUTIVE COUNCIL APPROVES NIGERIA’S ECONOMIC SUSTAINABILITY PLAN

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STATE HOUSE PRESS RELEASE WHAT YOU NEED TO KNOW ABOUT THE NIGERIA ECONOMIC SUSTAINABILITY PLAN The Nigeria Economic Sustainability Plan (NESP), approved by the Federal Executive Council (FEC) on June 24, 2020, was developed by the Economic Sustainability Committee (ESC), established by President Muhammadu Buhari on March 30, 2020. Chaired by Vice President Yemi Osinbajo, the ESC comprised several Cabinet Ministers as well as the Group Managing Director of the NNPC and the Governor of the Central Bank of Nigeria (CBN). Terms of Reference included: Development of a Plan that responds robustly and appropriately to the challenges posed by the COVID-19 pandemic Identification of fiscal measures to enhance oil and non-oil government revenues and reduce non-essential spending, Creation of a financial stimulus package for the Nigerian economy, Articulation of specific measures to support the 36 States and the FCT, and very importantly, Support for MSMEs and the creation of jobs. The NESP was developed in consultation with Cabinet Ministers, Heads of Federal Agencies, the Presidential Economic Advisory Council (PEAC), State Governors and the National Assembly. The NESP has been developed as a 12-month, 2.3 Trillion Naira ‘Transit’ Plan between the Economic Recovery and Growth Plan (ERGP) and the successor plan to the ERGP, which is currently in development. The NESP will be funded as follows: 500 billion Naira from Special FGN Accounts 1.1 trillion Naira from the CBN in the form of structured lending 334 billion Naira from external bilateral/multilateral sources 302.9 billion from other funding sources The design and implementation of the NESP are driven by the following principles: LOCAL CONTENT AND SELF RELIANCE: The plan promotes local production, local services, local innovation, and the use of local materials, in line with the Mandate of Presidential Executive Order 5 of 2017, on the Promotion of Nigerian Content in Contracts and Science, Engineering and Technology, and also based on President Buhari’s mantra to “produce what we eat and consume what we produce.” ECONOMIC STIMULATION: Ensuring liquidity, preventing business collapse, and staving off the worst impact of a potential recession. JOB PRESERVATION AND CREATION: The NESP recommends carrying labour intensive programmes in key areas like housing, roads, agriculture, facility maintenance, and direct labour interventions – all heavily utilising local materials. PRO-POOR/VULNERABLE FOCUS: The NESP will extend protection to vulnerable groups, including women, and persons living with disabilities. It will also cater to the sectors of the economy that have been worst hit by the pandemic. HIGHLIGHTS…

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