Business Adeosun Unveils 10-Point Agenda to Pull Nigeria Out of Recession



Nigeria's Finance Minister, Kemi Adeosun, has unveiled a document, the 2017 Fiscal Road map, which is aimed at pulling Nigeria out of recession.

Here are the propositions in the document:

1. Recognise inherited debt profile after a robust audit process:
  • Introduce promissory note programme to finance verified liabilities
  • Issue debt certificates to contractors, Ministries, Departments & Agencies (MDAs), and State overnments
  • Improve cash flow of businesses
  • Improve Banks’ Non-Performing Loans (NPLs)
  • Free up Banks’ balance sheet for lending to private sector
  • Improve government’s business interaction with the private sector

2. Mobilise private capital to complement Government spending on infrastructure:
  • Roads Trust Fund
  • Family Homes Fund
  • Extend infrastructure tax relief to a collective model to attract clusters of corporate entities
  • Expand the provision of infrastructure
  • Drive growth of non-oil sector.
  • Drive economic growth

3. Strengthen fiscal/monetary handshake:
  • Replace administrative measures on list of 41-items with fiscal measures to reduce demand pressure in parallel market
  • Encourage domestic food production through specific incentives e.g. accelerated depreciation on food manufacturing equipment and Zero (0%) duty on green houses
  • Planned revitalisation of refineries
  • Increase Diaspora remittances via participation in the buyer support scheme for the Family Homes Fund
  • Reduce demand for US Dollars
  • Increase supply of US Dollars

4. Incentivise exports:
  • Restructure the Export Expansion Grant (EEG) to a tax credit system
  • Rationalise tariffs and waivers in key export sectors
  • Encourage/incentivise non-oil exports
  • Drive import substitution

5. Encourage investment in specific sectors through fiscal incentives:
  • Accelerated depreciation on equipment in strategic sectors e.g. food processing, mining and power
  • Rationalise tariffs and waivers in priority sectors
  • Drive investment in strategic sectors

6. Continue expansion of fiscal space through revenue enhancement and cost consolidation:
  • Customs Single Window (being implemented through a Private Public Partnership (PPP) scheme)
  • Template for non-allowable expenses for government agencies.
  • Overhead cost control by the Efficiency Unit
  • Continuous risk based audit by the Presidential Initiative on Continuous Audit
  • Revenue enhancement
  • Cost containment

7. Improve fiscal discipline at Sub-National level:
  • Extension of efficiency unit at Sub-National level
  • Fast track municipal bond issues to deepen the bond market
  • Conversion to International Public Sector Accounting Standards by all State Governments.
  • Improved fiscal position at Sub-National level

8. Enable and accelerate Recoveries process:
  • Whistle-blower scheme
  • Centralised database on recovered assets
  • Asset tracing
  • Professional management of recovered assets
  • Increased efficiency of Recoveries process
  • Increased budgetary funding availability from Recoveries

9. Rebalance debt portfolio to extend maturity and optimise debt service cost:
  • Rebalance public debt portfolio with increased external borrowing (60:40 target)
  • Extend maturity profile of public debt portfolio
  • Deploy long-term debt instruments including Infrastructure and Retail Bonds
  • Maximise use of concessionary loans
  • Rebalanced debt profile withimproved debt service to revenue ratio

10. Catalyse Micro, Small and Medium Enterprise (MSME) growth through specific measures to improve capacity and access to finance:
  • Development Bank of Nigeria (US$1.3bn)
  • Increase share of business awarded to MSMEs from Government contracts
  • Tax harmonisation and tax incentives
  • Accelerated depreciation


  • adeosun buhari.jpg
    adeosun buhari.jpg
    87.9 KB · Views: 9