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Home Business News Business

FG willing to implement new ideas to grow the economy – Osinbajo

William Ukpe by William Ukpe
November 25, 2020
in Business
Solar, FG to slash import duties on tractors, buses, others in 2020 Finance Bill, Nigeria will not issue Eurobonds, says Vice President Yemi Osinbajo, FG guarantees mortgage loan to low income buyers at low interest rate, FG inaugurates gold refinery project in a landmark event

Nigeria’s Vice President, Professor Yemi Osinbajo

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Vice President Yemi Osinbajo has announced that the Federal Government has been willing to implement new ideas suggested in the Economic Sustainability Plan (ESP) after the fallout of the pandemic on the nation’s economy.

This was disclosed by the media aide to the Vice President, Laolu Akande, in a statement on Tuesday in Abuja. He added that the Vice President disclosed this at a virtual meeting with the Franco-Nigeria Chamber of Commerce and Industry.

READ: Nigerian Railway Corporation announces revenue of N1.4 billion in 2020

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What you should know 

In June, the Nigerian Government released its Economic Sustainability Plan which it hopes will address the economic challenges of the COVID-19 pandemic. The plan was put together by the Economic Sustainability Committee (ESC) assembled by President Muhammadu Buhari. Members of the committee included the Vice President, CBN Governor, 15  Ministers, GMD NNPC, and the Permanent Secretary.

READ: Survival Fund: FG assures Nigerians that beneficiaries will be evenly distributed across states

The report said Nigeria should:

  1. Develop a clear Economic Sustainability Plan in response to challenges posed by the COVID-19 Pandemic;
  2.  Identify fiscal measures for enhancing distributable oil and gas revenue, increasing non-oil revenues and reducing non-essential spending, towards securing sufficient resources to fund the plan;
  3. Propose monetary policy measures in support of the Plan;
  4. Provide a Fiscal/Monetary Stimulus Package, including support to private businesses (with emphasis on strategic sectors most affected by the pandemic) and vulnerable segments of the population, and many others.

READ: We are working to clear N124 billion backlog of export claims – NEPC

The Vice President disclosed that implementing the Plan was to save jobs and protect Nigerian businesses affected by the pandemic.

Osinbajo said, “It is important to recognise that the pandemic, which really is the cause of the downturn, not just in the Nigerian economy but practically all of our economies, all over the world, except perhaps China, also provides incredible opportunities for doing all manner of very innovative and creative things.

“And if you look at our ESP, which is our response to the pandemic, what we tried to do was to do a few things that we thought would be game-changing.

READ: FG says 174,574 successfully register for N75 billion MSME survival fund in 48 hours

“For example, one of the important things that we are trying to do with respect to renewable energy is with solar power.

“We are collaborating with several solar power companies to provide within the next 12 months, five million Nigerian households with solar home systems.

“This is partly to address the issues with the national grid by providing more off-grid capacity and provide more opportunities in the renewable energy space.

READ: Flour Mills’ GMD acquires shares worth ₦54.6 million

“ What we are doing is to get the financing through the Central Bank of Nigeria as part of the Economic Sustainability Plan.”

Osinbajo said backward integration is key to driving economic growth and urged for private sector commitment to align with the FG’s backward integration goals.

“For us, the issue of backward integration is right, front and centre, and it has been so for many years.

READ: Nigerian Breweries pioneers Nigeria’s first solar-powered brewery

“We believe that an aggressive pursuit of it is really important for us as an economic policy.

“The most important thing, as I said, is that we are committed to backward integration.

READ: De facto Government: CBN explains why it will keep funding the economy

“Unfortunately, over the years, many companies have committed to backward integration but have simply not been as diligent and faithful with those promises.

“So, we really want to see much greater commitment and a plan that is as aggressive as our own aspirations,” he added.


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Tags: Economic Sustainability Plan
William Ukpe

William Ukpe

For further inquiries about this article contact: Email: william.ukpe@nairametrics.com or outreach@nairametrics.com. Twitter: @_sirwilliam_ @nairametrics.

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Whether you are a resident here or you are not resident as a company, as long as your economic presence is significant, you are liable to tax. If you are streaming online, advertising using Google adverts, whether you are resident here or not, you are now subject to tax. “So, non-residents who previously had no fixed base and no Nigerian tax liability will now be liable to tax based on the SEP criterion. The Minister of Finance is empowered to issue a regulation defining what Significant Economic Presence means. So, she just defines the scope of what we will be looking out for in terms of Significant Economic Presence.” Osinbajo explained. Nigeria is not alone in this crusade: Nigeria is not the only country trying to tax these technology companies. The European Union have also been coming after them for taxes. 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Comments 2

  1. Fortune Odesanya says:
    November 25, 2020 at 10:41 am

    Please o, where will the new ideas come from? Those block heads?

    Reply
  2. Terence Ogar says:
    November 25, 2020 at 2:58 pm

    Government should create avenue where creative guys like me with creative ideas can get funds easily to finance project that could generate revenue for the whole country not just for an individual.

    I have presented a proposal to so many organizations to help sponsor a project I have to produce a portable hydroelectricity. But none wants to sponsor it. They’ll rather prefer sponsoring Artistes, modellers, etc as if they add value to anybody

    Reply

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