The Federal Government of Nigeria (FGN) has disclosed that the country’s foreign reserve is expected to increase by $150 billion in the next 10 years through the ‘Zero oil plan’ initiative.
This is contained in the report presented to the National Economic Council (NEC), chaired by the Vice President, Prof. Yemi Osinbajo, on Friday.
The details: The latest announcement by NEC to build reserves by $150 billion in ten years, represents a review against an earlier statement credited to the Executive Director of the Nigerian Export Promotion Council, Olusegun Awolowo, that Nigeria has 22 products that will attract $150 billion into the country in 20 years.
At the NEC meeting, the Governor of Jiagawa State Alhaji Mohammed Badaru Abubakar, speaking on behalf of the Committee on export promotion, disclosed that the Zero Oil Plan envisioned in the Economic Recovery and Growth Plan (ERGP) will add at least extra $150 billion to Nigeria’s foreign reserves cumulatively from non-oil exports over the next 10 years.
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The Committee also stated that the Zero Oil Plan would provide 500,000 jobs annually for the country, with 20 million Nigerians out of poverty.
The achievements: Specifically, the Nigerian Export Promotion Council (NEPC) introduced the Zero-Oil Plan in October 2016, during the nadir of the oil price slump. It was basically an effort to mobilise public and private resources towards boosting the country’s meagre non-oil exports.
- While providing further updates on the achievement so far through the Zero Oil Plan, Abubakar stated that non-oil exports (excluding natural gas) had risen from U$1.17 billion in 2016 to US$3.16 billion in 2018, and this means that Strategic sectors identified in the Zero Oil Plan have seen growth.
- It was further disclosed that a State Export Development Fund has also been created through N50 billion debenture to be disbursed by NEXIM, in which the Central Bank of Nigeria (CBN) has invested.
- According to the report of the Committee, the Fund offers long–term loan at single-digit interest rate to qualifying export-oriented projects under the State Export Development Programme and the Anchor exporter scheme.
The Nigerian economy: Delivering updates on the economy, the Honourable Minister of Finance, Budget and National Planning, Zainab Ahmed informed NEC that the Nigerian macroeconomic environment has stabilized in recovering gradually.
According to Ahmed, there has been eight (8) successive month of economic growth since emerging from recession and ERGP remains the basis for the Medium Term fiscal strategy for the economy.