ECONOMY
AGRICULTURE
The Anchor Borrowers Programme (ABP)of the Central Bank of Nigeria, launched by President Muhammadu Buhari on November 17, 2015, has made available more than 200 billion Naira in funding to more than 1.5 million smallholder farmers of 16 different commodities (Rice, Wheat, Maize, Cotton, Cassava, Poultry, Soy Beans, Groundnut, Fish), cultivating over 1.4 million hectares of farmland.
The ABP has substantially raised local production of rice, doubling the production of paddy as well as milled rice between 2015 and 2019.
Between 2016 and 2019, more than 10 new rice mills came on-stream in Nigeria. Many of the existing Mills have expanded their capacity; several new ones are under construction.
More than a billion dollars of private sector investments in the production of Rice, Wheat, Sugar, Poultry, Animal Feed, Fertilizers, etc, since 2015.
Federal Executive Council approval (2020) for a National Agriculture Mechanization Programme, the Green Imperative, in partnership with the Government of Brazil and multilateral financing institutions.
The Presidential Fertilizer Initiative:
Launched in January 2017, as a Government-to-Government agreement with the Kingdom of Morocco
More than a million metric tonnes of fertilizer produced since 2017. This translated to distribution of more than 18 million 50kg bags of NPK fertilizer in the first three years of the PFI)
22 blending plants resuscitated (combined installed capacity of more than 2.5m MT)
Price reduction from 9,000-11,000 per bag, to 5,500
FX savings of m annually through the substitution of imported components with locally manufactured ones
Subsidy savings of 50 billion Naira annually
Making Business Work
Support for Micro, Small and Medium Enterprises: The Administration has launched a series of funding and capacity development initiatives designed to support MSMEs:
The new Development Bank of Nigeria (DBN) has finally taken off, with initial funding of US.3 billion (N396.5 billion); to provide medium and long-term loans to MSMEs.
Since 2017, the DBN has disbursed a total of N100 billion through the banks 27 Participating Financial Institutions (PFIs) impacting more than 100,000 MSMEs.
52% of loans disbursed in 2019 were to youths and women owned businesses.
Bank of Industry has disbursed more than N400 billion in loans to large, medium, small and micro enterprises since 2016.
It has also established a N5 Billion Fund for Artisanal Miners, as part of the Federal Ministry of Mines and Solid Minerals Developments Programme to boost Mining activities in Nigeria; as well as a million Fund to support young technology entrepreneurs in Nigeria
The MSME Clinics, which bring relevant Government Agencies together with small businesses operating in various cities across the country, to enable the Agencies provide direct support to these businesses. The interactions allow the Agencies better understand the issues facing small businesses, and provide a platform for speedy resolution.
The Ease of Doing Business Reform Programme (see below)
The Government Enterprise and Empowerment component (GEEP) of the Social Intervention Programme (SIP)
Ease of Doing Business Reform Successes:
The work of the Presidential Enabling Business Environment Council (inaugurated by President Buhari in August 2016) and the Enabling Business Environment Secretariat (EBES) has resulted in Nigeria moving up 39 places on the World Banks Ease of Doing Business rankings since 2016. In the last 3 years Nigeria has twice been adjudged one of 10 Most Improved Economies in the Rankings.
The Nigerian Investment Promotion Council (NIPC) in 2017 completed a long-overdue revision of the list of activities that can benefit from Nigerias Pioneer Status Incentive, which grants beneficiary companies a 3 to 5-year tax holiday. The revision, done more than 10 ten years after the last one, has modernized the List, expanding the tax holiday incentives to qualifying companies in E-commerce, Software Development, Animation, Music, Film and TV.
NIPC published a Compendium of all Investment incentives in Nigeria, making it easier for existing and potential investors to have equal access to the information.
Some of the specific Ease of Doing Business Reform achievements are as follows:
Assent by President Buhari to the Finance Bill, 2019. The Finance Act, 2019 is the first time Nigeria is accompanying the passage of a Budget with complementary fiscal and business environment reforms legislation. The 2020 Budget is also the first time in 12 years that a Federal Budget has been restored to the January-December cycle.
Creation of a National Collateral Registry (NCR). A NCR or Movable Assets Registry was established by the Central Bank of Nigeria, in May 2016. The NCR allows small businesses to get access to loans using movable assets machinery, livestock, inventory as collateral. As of the end of June 2018, the NCR online portal had registered 630 financial institutions. Between inception in 2016 and April 2020, these financial institutions had recorded a total of 65,370 moveable assets on the portal, belonging to 165,456 borrowers, and valued at 1.26 Trillion Naira
Automation of business name reservation, submission of registration documents, payment of registration fees, generation of Tax Identification Numbers (TIN), and filing of federal Taxes.
Implementation of functioning Visa-on-Arrival system for Business Visitors and AU nationals.
PENSIONS
In January 2019, President Buhari launched Nigerias Micro Pension Scheme which allows self-employed persons and persons working in organisations with less than 3 employees to save for the provision of pension at retirement or incapacitation.
The Buhari Administration is prioritizing the payment of pension arrears owed staff of current and privatized/defunct Federal agencies:
N54 billion released to settle outstanding 33% pension arrears (the 33% pension arrears date back to 2010 when the minimum wage was increased to N18,000).
Delta Steel Company (liquidated in 2005): 3,542 pensioners have now been placed on the payroll, ending a 13-year wait for their entitlements.
NITEL: 9,216 pensioners payrolled, after more than a decade of neglect
Retired Biafran Police Officers (dismissed by the Federal Government in 1971, after the Civil War ended, and pardoned by President Obasanjo in 2000): President Buhari approved the payment of the pensions, unpaid since their pardon in 2000. N571.56 million was paid to a total of 174 beneficiaries in October 2017
Nigeria Airways: President Buhari approved the release of N24 billion in September 2018, for the settlement of 50% of workers disengaged when the airline was liquidated in 2003/4.
Recoveries: The Pension Transitional Arrangement Directorate (PTAD) has recovered cash and non-cash assets totaling N16 billion previously trapped in various insurance companies and underwriters managing the pension funds of Federal Parastatals and Universities.
MONETARY, FISCAL, TRADE, IMMIGRATION, CONSUMER PROTECTION REFORMS
Tax
Launch of a new Tax Identification Number (TIN) Registration System in 2019. For the first time Nigeria has a consolidated, unified database of all taxpayers (individual and corporate), across all States.
This new System is the product of increased collaboration between FIRS and States Inland Revenue Services (through improved sharing of information, and an integration of databases, among others)
The new TIN Registration system leverages on existing taxpayer data available from databases of multiple organizations like Corporate Affairs Commission (CAC), Banks through Bank Verification Number (BVN), National Identity Card Management Commission (NIMC) and others.
The improved collaboration between FIRS and the various SIRS has resulted in an increase in Nigerias Tax Net (number of paying and non-paying individuals and companies in the Tax Database) from 13 million as at December 2015 to 35 million at the end of 2018, and a projected 45 million by the end of 2019.
Trade
Establishment of the Nigerian Office for Trade Negotiations by the Economic Management Team (EMT). The NOTN has produced Nigerias first Annual National Trade Report, and is compiling, for the first time in Nigerias history, a comprehensive database of Nigerian Trade Deals and Agreements.
The Renminbi-Naira Swap Agreement between the Peoples Bank of China and the Central Bank of Nigeria: On April 27, 2018, the CBN signed a 3-year bilateral currency swap agreement with the Peoples Bank of China (PBoC), worth Chinese Yuan (CNY) 15 billon equivalent to N720.00 billon or US.5 billion.
Budget:
Budget proposal submission, which used to be done manually (submissions in hard copy and flash drives) has moved to an online platform, the Government Integrated Financial Management Information System (GIFMIS), since 2018. The new Budget Submission System significantly improves the transparency and efficiency of the budgeting system.
Restoration of Federal Budget to January-December cycle, with the 2020 Budget, for the first time in 12 years.
Immigration:
Installation of the Migration Information and Data Analysis System (MIDAS) a global travel security standard in 5 Nigerian International Airports, commencing in late 2019, with the support and collaboration of the International Organization for Migration (IOM).
MIDAS is linked to Local and International Criminal Dabatases / Watchlists (INTERPOL etc), and achieves real-time synchronization of data between all of Nigerias International Airports and the NIS Headquarters in Abuja. It ultimately creates a faster and more efficient airport experience, while also ensuring that persons crossing Nigerias borders through the Airports do not pose any threats to national and international security.
Accompanying the installation of MIDAS, is the launch of a New Visa Policy, 2020 by the Nigeria Immigration Service (NIS), as part of a broader 5-year Border Strategy Reform (2019 2023).
The new Visa Policy incorporates the following reforms:
Expansion of Visa Categories from 6 to 79, to reflect and cater to the full range of realities and scenarios for intending travelers to Nigeria.
Introduction of eVisas, which carry biometric information of visa holders. The eVisa issuance system is linked to MIDAS.
Automation of Visa Issuance and Payment to reduce human contact and associated corruption.
The Visa on Arrival Policy expanded to all holders of African Passports starting January 2020.
Consumer Protection:
President Buhari in 2019 assented to the Federal Competition and Consumer Protection Commission (FCCPC) Bill, the first legislation in Nigerias history focused on curbing anti-competition practices; and the establishment of the Federal Competition and Consumer Protection Commission.
Debt Management:
Between 2017 and now, Nigeria has issued its first ever:
Diaspora Bond, in the International Capital Market. The Diaspora Bond was US million with a tenor of 5-years. The proceeds were used to partfinance the 2017 Budget.
Sukuk Bond (1st Tranche 100 billion Naira in 2017; 2nd Tranche of 100 billion Naira in 2018 and 3rd Tranche of 150 billion Naira has just gone on sale in May 2020). The Sukuk Bond proceeds are being used to fund major road projects across the six geopolitical zones of Nigeria.
The Buhari Administration has issued Nigerias first ever Sovereign Green Bonds.
Domestic Borrowing Costs:
Through the CBNs policies and directives, Treasury Bill rates which represent domestic borrowing costs for the Government have fallen from 16-18 percent per annum in 2017 to 2-6 percent per annum in 2019/2020.
FISCAL SUPPORT TO STATES
The Buhari Administration has extended more than N2 Trillion Naira in bailout packages to State Governments, to enable them meet their salary and pension obligations, especially in the face of dwindling oil revenues in the first 3 years of the Administration. The support has come in the form of the following:
Budget Support Facility (Total of N614 billion extended to the States.
Paris Club Refunds (.4 billion)
Infrastructure Loans
Loan Restructuring for Facilities with Commercial Banks: In 2015, the DMO restructured Commercial Bank loans with a total value of N575.516 billion for 23 States to reduce the debt service burden on the states. In exchange for their loans to State Governments, the banks were issued 20-year FGN Bonds at a yield of 14.83% per annum. The Restructuring Exercise benefited the States through:
Reduction in the monthly debt service burden of States from between 55% to 97% for various States;
Interest rate savings for the States ranging from 3% to 9% per annum;
Longer repayment period for the loans now converted into Bonds; and,
Freeing up of needed cash to run the machinery of Government.
EXECUTIVE ORDERS
The Buhari Administration has, since 2017, issued a number of landmark Executive Orders:
Executive Order (001) on Improving Efficiency in the Business Environment
Executive Order (002) on Promoting Local Procurement by Government Agencies
Executive Order (005) on planning and execution of projects, promotion of Nigerian content in contracts and science, engineering and technology
Executive Order (008) on the Voluntary Offshore Assets Regularization Scheme (VOARS)
Executive Order (007) on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme
Executive Order (010) Implementing Financial Autonomy of State Legislature and State Judiciary
INFRASTRUCTURE
The Buhari Administration has demonstrated a single-minded commitment to upgrading and developing Nigerias Transport, Power and Health Infrastructure.
Three major rail projects inherited from previous administrations have been completed and commissioned: Abuja Metro Rail and the Abuja-Kaduna Rail, and the 327km Itakpe-Ajaokuta-Warri Rail, started in 1987, have been completed in 2020.
A fourth Rail Project, the Lagos-Ibadan Rail Project, kicked off in 2017, and is due to be completed in 2020. The tracklaying for the main component of the project was completed in March 2020.
In May 2018, the Federal Government launched the Presidential Infrastructure Development Fund (PIDF), under the management of the Nigerian Sovereign Investment Authority. The PIDF kicked off with seed funding of US million, and has already disbursed funds for three critical road projects: Second Niger Bridge, Lagos-Ibadan Expressway, and the Abuja-Kaduna-Zaria-Kano Expressway.
Nigeria Sovereign Investment Authority (NSIA) in March 2018 invested USm to establish a world-class Cancer Treatment Center at the Lagos University Teaching Hospital (LUTH), which commenced operations in 2019.
Work is ongoing on two USm Diagnostic Centers in the Aminu Kano University Teaching Hospital and the Federal Medical Centre, Umuahia.
Abujas Light Rail system has been completed; it connects the city center with the Airport, and the Abuja-Kaduna Railway Line.
New Abuja and Port Harcourt International Airport Terminals completed, in Q4 2018. New Lagos and Kano International Airport Terminals scheduled for completion in 2020. All were inherited from the previous administration at various stages of completion, and in some cases required project redesign and revision.
The Buhari Administration successfully completed the reconstruction of the Abuja Airport runway within the scheduled six-week period (March April 2017), and will complete the reconstruction of the Enugu International Airport Runway in 2020.
The following Water Supply Projects and Dam/Irrigation Projects have been completed by the Buhari Administration:
Central Ogbia Regional Water Project, in Bayelsa
Sabke/Dutsi/Mashi Water Supply Project, in Katsina
Northern Ishan Regional Water Supply Project, serving Ugboha and Uromi communities of Edo State.
Kashimbila Dam, Taraba State
Ogwashi-Uku Dam, Delta State (Actual Dam completed and reservoir impounded in 2016; also spillway discharge channel completed).
Shagari Dam Irrigation Project, Sokoto State
Mangu Dam and Regional Water Supply Scheme in Plateau State
Completion of Phase 1 of Galma Dam, Kaduna
Rehabilitation of Ojirami Dam Water Supply Project, Edo State
The 25 Road Projects being funded by the Sukuk Bonds:
Construction of Oju/LokoOweto bridge over River Benue to link Loko (Nasarawa state) and Oweto (Benue state) along route F2384
Dualisation of AbujaAbajiLokoja Road section I (International Airport link road junctionSheda Village)
Dualisation of SulejaMinna Road in Niger State Phase II (km 40 000-km101 000)
Dualisation of AbujaAbajiLokoja Road: Section IV Koton KarfeLokoja in Kogi State
Dualisation of Lokoja-Benin Road: ObajanaOkene in Kogi State
Dualisation of KanoMaiduguri Road linking KanoJigawaBauchiYobe
Dualisation of KanoMaiduguri Road linking KanoJigawaBauchiYobeBorno States. Section III (AzarePotiskum) in Bauchi
Dualisation of KanoMaiduguri Road linking KanoJigawaBauchiYobeBorno States. Section IV (PotiskumDamaturu road) in Yobe
Dualisation of KanoMaiduguri Road linking KanoJigawaBauchiYobeBorno States. Section V (DamaturuMaiduguri)
Dualisation of KanoMaiduguri Road linking KanoJigawaBauchiYobeBorno States. Section I (KanoWudilShuari) in Kano
Dualisation of KanoKatsina Road Phase I, Kano Town at Dawanau roundabout to Katsina border in Kano
Construction of Kano Western Bypass as an extension of dualisation of KanoMaiduguri Road Section I
Construction of Kaduna Eastern Bypass
Rehabilitation of outstanding section of OnitshaEnugu Expressway: AmanseaEnugu border
Rehabilitation of EnuguPort Harcourt dual-carriage Section I: LokpantaUmuahia in Abia
Rehabilitation of EnuguPort Harcourt dual-carriage Section II Umuahia towerAba Township Rail
Rehabilitation of EnuguPort Harcourt Road Section III: EnuguLokpanta
Rehabilitation of EnuguPort Harcourt Road Section IV: AbaPort Harcourt in Rivers
Dualisation of Yenegwe Road JunctionKoloOtuokeBayelsa Palm in Bayelsa
Dualisation of LokojaBenin Road: Obajana JunctionBenin Section II Phase I: OkeneAuchi, Kogi/Edo states
Dualisation of LokojaBenin Road: Obajana JunctionBenin Section III Phase I: AuchiEhor in Edo
Dualisation of Lokoja-Benin Road: Obajana junctionBenin Section IV Phase I: EhorBenin City, Edo state
Reconstruction and asphalt overlay of BeninOfosuOreAjebandeleShagamu dual-carriage Phase IV
Reconstruction of outstanding section of sections of BeninOfusuOreAjebandeleShagamu dual-carriage Phase III
Dualisation of IbadanIlorin Road. Section II: OyoOgbomosho Road in Oyo
Power Sector:
The Federal Governments Energizing Economies Programme is a public-private partnership led by the Rural Electrification Agency (REA), to deliver stable power supply to markets and economic clusters across the country. The initial phase is ongoing in Ariaria Market in Aba, Abia State (32,000 shops), Sura Shopping Complex in Lagos (1,000 shops), Shomolu Printing Community in Lagos (4,000 shops) and the Sabon Gari Market in Kano (12,000 shops). The Sura Shopping Complex project was completed in August 2018, and commissioned by Vice President Yemi Osinbajo in October 2018.
Launch of a 1.3 Trillion Naira Payment Assurance Programmedesigned to resolve the liquidity challenges in the Power Sector by guaranteeing payments to Generating Companies and Gas Suppliers.
Implementation of a Willing Buyer, Willing Seller Policy for the power sector, which has opened up opportunities for increased delivery of electricity to homes and industries. The Nigerian Electricity Regulatory Commission (NERC) has also recently issued an Order capping estimated billing by DisCos.
More than 90 Transmission Projects completed or ongoing since 2016.
Oil and Gas:
NNPC is set to commence construction of the 614km Ajaokuta-Kaduna-Kano (AKK) natural gas pipeline, which will traverse Kogi, Niger, FCT, Kaduna and Kano, and feed power plants and industries along the corridor. NNPC has paid the 15 percent counterpart funding for the .9 billion project, while the Federal Executive Council (FEC) has approved the issuance of a sovereign guarantee to cover the rest of the funding, coming from the China Export and Credit Insurance Corporation.
Nigeria LNG Limited concluded Final Investment Decision (FID) on its Train 7 project at the end of 2019, and signed an EPC contract for the project in May 2020. A financing arrangement worth 3 billion US dollars was also concluded, the largest financing deal in Africa so far in 2020. NNPC owns a 49 percent stake in NLNG, on behalf of the Nigerian Government.
Controversial Offshore Processing Arrangement (OPA) has been cancelled and replaced with a Direct Sales and Direct Purchase (DSDP) scheme with reputable offshore refineries.
The Passage of the long overdue Deep Offshore and Inland Basin PSC (Amendment) Act, 2019, which will deliver increased revenues to the Federation.
Negotiation of the billions of dollars in arrears of Cash Calls we inherited when we assumed office, resulting in an agreement for a significant discount of .7 billion. Since 2017 the NNPC has commenced payment of the arrears to the Oil Companies, with a view to clearing the backlog. As at Q4 2018, about billion of the .5 billion arrears had been cleared.
Removal of the fuel subsidy regime and replacement by a market-led price modulation mechanism.
The Modular Refinery Initiative of the Buhari Administration has delivered 3 completed private sector-led projects, in Rivers, Imo and Delta States, and several others are in progress. Eminent persons like former President Olusegun Obasanjo have publicly commended the success recorded in that sector by the Buhari Administration.
INVESTING IN PEOPLE
The SIP is the largest and most ambitious social safety net programme in the history of Nigeria, with 12 million direct beneficiaries so far:
500,000 N-Power beneficiaries currently enrolled and have been deployed and are receiving N30,000 in monthly stipends. Additional 40,000 are at various stages of enrolment.
Government Enterprise and Empowerment Programme (GEEP):
36.9 billion so far disbursed in interest-free loans ranging from N50,000 to N350,000 to more than 2.3 million market women, traders, artisans, farmers across all 36 States of the country and the FCT, under GEEP, using locally developed and implemented technology solutions (More than half of the loans have gone to women).
In terms of advancing the financial inclusion goals of the Buhari Administration, GEEP has led to the opening of 2,023,145 new mobile wallets for beneficiaries.
In November 2017, GEEP was chosen as the pilot programme for the Bill