The Federal Executive Council (FEC) has approved the National Development Plan (NDP) for 2021 to 2025, which will replace the Economic Recovery and Growth Plan (ERGP) which expired in Dec. 2020.
This was disclosed by Zainab Ahmed, Minister of Finance, Budget and National Planning in a press briefing with State House correspondents after a virtual FEC meeting presided over by Vice President Yemi Osinbajo on Wednesday at the Presidential Villa, Abuja.
The Finance Minister revealed that the National Development Plan would be structured around six main areas including economic growth and development, infrastructure, public administration, human capital development, social development and regional development; and would need an investment size of N348.7 trillion over the five-year period.
What the Minister said about the National Development Plan
“The Ministry of Finance, Budget and National Planning presented a memo requesting approval for the NDP for 2021 to 2025, which is a plan that is succeeding the ERGP which expired in Dec. 2020.
“This National Development Plan, NDP, is structured along six clusters. The clusters include economic growth and development, infrastructure, public administration, human capital development, social development and regional development.
“The plan is underpinned by a macro-economic framework, which projects an average real GDP growth of five per cent per annum over the plan period.
“Also, the plan has been costed to have an investment size of N348.7 trillion over the five-year period,’’ the Finance Minister said.
She added that the investment size needed for the NDP would be contributed by the public sector at N49.7 trillion, which represents 14.3% and the private sector at N298.3 trillion, representing 85.7%, while the public sector expenditure component of N49.7 trillion will be contributed by both the Federal Government and the states.
“The Federal Government expenditure component is N29.6 trillion, representing 8.5 per cent of the total expenditure size, while the sub-national government, states, will be contributing N20.1 trillion, representing 5.8%.
“The funding strategies for the plan have also been identified and these include broadening the tax base, enhancing the capacity of the private sector through creating investment opportunities and deliberate policy engagements and incentives.
“There will also be exploring domestic and concessioning financing sources and setting up financial investment vehicles such as growth funds and public-private partnership as well as the Nigerian Investment and Growth Fund.
She added that the implementation of the plan requires the establishment of a strong implementation mechanism and framework that promotes performance and accountability, citing that there will also be a Development Plan Implementation Unit that will report to the National Steering Committee, which will be headed by the vice president with the Minister of Finance, Budget and National Planning as vice-chair.
She noted that the establishment of the Development Plan Implementation Unit would be in the planning arm of the Ministry, citing that immediately the plan is launched, the Ministry will be continuing work on the longer-term plan, which is the Nigeria Agenda 2050.
“Going forward, the national annual budget will be derived from the plan, the details of which have already been costed,” she said, adding that all MDAs will be required to draw their programmes and projects from the detailed plans that they themselves have submitted during this process.
