President Muhammadu Buhari is not adopting a quick fix approach to the economy, but initiating long-lasting policies, the Federal government has said.
Minister of Information and Culture, Lai Mohammed told reporters in Lagos at the weekend that the results of the economic policies of the government would soon begin to germinate in full measure.
The minister said, “This administration’s contract with Nigerians sits on a tripod— The fight against corruption, tackling insecurity and reviving the economy— even our worst critics acknowledge the progress we have made in fighting corruption and tackling insecurity.
“But one area in which they have consistently criticised us is the economy. Right from the inception of this Administration, we chose the path of seeking a lasting solution to the economic crisis plaguing the nation instead of engaging in a quick fix that may attract accolades but will not endure.
“We chose to be painstaking instead of engaging in palliatives.”
The minister added that the “well-thought-out policy, encapsulated in the Administration’s Economic Recovery and Growth Plan (ERGP) is working and the results are beginning to show. In September we exited recession and returned to the path of growth, after five consecutive quarters of contraction. Taking Nigeria out of recession did not happen by accident. It was the culmination of months of hard work by the Administration and fidelity to its well-articulated economic policies.
“To show that taking Nigeria out of recession was not a fluke, less than two months after, the country has moved up 24 places, to 145th, in the World Bank’s ‘Doing Business’ report. Not only that, for the first time the country is recognised as one of the top 10 most-improved economies in the world.”
Secretary of Presidential Enabling Business Environment Council (PEBEC) Dr. Jumoke Oduwole said the Federal Government would build on the achievements recorded, especially the enhancement of a conducive environment for business operations.
She said the conducive atmosphere include guaranteed access to credit for Small Scale Businesses (SMEs), construction permits, ease of business registration, ease of tax payment, and promotion of transparency and efficiency in the business environment.
She said The PEBEC chaired by Vice President Yemi Osinbajo took a significant step towards making it easier for micro, small and medium enterprises to business by approving a 60-day National Action Plan on the ease of doing business for ministries, departments and agencies responsible for their implementation.
The minister said the measure was taken because micro, small and medium scale businesses account for half of the nation’s Gross Domestic Product (DGP), adding that they also employ over 80 per cent of the labour force.
Mohammed added: “We look up to these enterprises to provide endless possibilities for economic growth. If the MSMEs blossom, Nigeria’s economy will thrive. We even surpassed our target. We had hoped to move up to 20 places. We beat that by four more to move up to 24 places.”
To boost taxation, the minister said the administration launched the “Nigerian Voluntary Asset and Income Declaration Scheme (VAIDS) to provide time-bound opportunity for tax payers to regularize their tax status and pay tax regularly.
He said if tax payers honestly declare previously undisclosed assets and income, they will benefit from forgiveness of overdue interest and penalties, and be insulated from criminal prosecution for tax offences.
Mohammed added, “As of 31st Oct. 2017, VAIDS has raked in over N200 million and 55 million US dollars. For eight consecutive months, headline inflation has been falling; the foreign exchange reserves are up to $34 billion, from $24 billion a year ago; oil production is at nearly 2 million barrels per day, a significant improvement from 2016 when it was mostly below a million; the value of the Naira in the parallel market has appreciated significantly in recent times against the US dollar, and that at about 1.8 billion dollars, the capital inflows in the second quarter of 2017 were almost double the $908 million in the first quarter.”
The minister said Nigerians will savour a new lease of life, owing to the on-going massive infrastructural development, especially roads, railways and power, adding that food prices tumble and more jobs will be created.
Hailing Nigerians for their patience and belief in the Buhari administration, Mohammed said, “Reviving the economy was never going to be an easy task. It was bound to bring some hardship to our people in the short term. Through it all, the good people of Nigeria have borne the pains with equanimity, based on their unshakable trust in the sincerity, capability and commitment of President Buhari. Now, the soothing balm is here.”
Oduwole reviewed the performance of the economy, based on the World Bank’s reforms in the critical areas of starting a business, dealing with construction permits, registering property, getting credit and paying taxes, stressing that Nigeria was on course.
She said, “In the area of company registration, the Corporate Affairs Commission has moved to offer online registration and introduced new features such as electronic stamping of registration documents. Thus, entrepreneurs have been able to register their businesses much faster, within 24-48 hours, thereby saving cost and time
“Getting construction permits and registering property in both Lagos and Kano States have become more transparent and easier for businesses with the online publication of all relevant regulations, fee schedules and pre-application requirements online.”