The Nigerian Government revealed that the 2021-25 National Development Plan (NDP) would require N348.1 trillion in investment commitments and this commitment is not coming from the government alone as the private sector will need to contribute 80%.
This was disclosed by Nigeria’s Finance Minister, Mrs. Zainab Ahmed on Thursday in Abuja at the inauguration of the Board of Directors of the Nigeria Small and Medium Enterprises (SMEs) Forum.
President Buhari inaugurated the NDP last year to succeed the Economic Recovery and Growth Plan (ERGP 2017-2020).
What she said:
The Finance Minister stated that the Ministry of Finance Budget and National Planning Commission has developed a National Development Plan 2021 to 2025.
She noted that the plan cannot be achieved by the government alone; the private sector and SMEs have a huge role in the implementation of the plan.
“To effectively implement the plan by 2025, it is expected to achieve an economic growth rate of 4.6%.
“It is also expected to lift 35 million people out of poverty and create 29 million jobs.
“To attain this objective, a total of N348.1 trillion investment commitments are required and this commitment is not coming from the government alone.
“In fact, 80% of these resources are coming from the private sector.
“The sum of N298 trillion will be funded by the private sector.
“We are expecting SMEs to fund part of this as part of the private sector’s contribution, while N49.7 trillion is expected from government,’’ the minister said.
Chairman of the Forum, Dr. Albert Akinyemi, expressed worries at the rejection of some Nigerian products abroad because of their low quality, citing quality and the Federal Government is aware of it and working assiduously to address it.
He added “the Federal Government has so many interventions but because of what I will call the Nigerian factor, the story has not been good.
“Some people will be blaming the Federal Government but it is not true; the problem emanated from the SMEs themselves and the officials.
“For instance, some banks will say we don’t have the experience or collateral security,’’ he said.
What you should know
- Nairametrics reported last year that President Muhammadu Buhari has officially inaugurated Nigeria’s National Development Plan 2021-2025 to succeed the Economic Recovery and Growth Plan (ERGP 2017-2020).
- The Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed, said, “The NDP 2021-2025 is designed as our medium-term Development Plan to succeed the Economic Recovery and Growth Plan (ERGP 2017-2020), which ended in December 2020.
- “The ERGP 2017–2020 assisted the country to exit economic recession in 2017 and sustained modest growth until the recent global economic challenges occasioned by the COVID-19 Pandemic.
- “The current challenges are products of many years of inappropriate policies, fiscal leakages, and global economic phenomena.”
- The National Development Plan 2021-2025 focuses on six broad objectives which include: Economic diversification, Investment in infrastructure, Security and good governance, Educated and healthy population, Poverty alleviation, and Economic and social development across states.