Speech: VP Osinbajo’s Remarks At The 6th Presidential Quarterly Business Forum For Private Sector Stakeholders

Let me again thank you all for your attendance at this Quarterly Business Forum on agriculture, agribusiness, and the agro allied value chain. I think we are at a special moment in our journey to food security, and to becoming a power of sorts, especially of processed agricultural products in particular.

We are in a special moment because the Federal Government has shown commitment towards agriculture and entire value chain. We have seen enthusiasm of all the players, including the small farmers all across the country.

Getting feedback concerning issues that have been raised, there is cheaper credit, and the President directed that we set up a small committee to look at the issue of intervention funds in agriculture. It is clear, that we are not able to bring down interest rates overnight, the way out is by some kind of intervention agreement.

I chair a committee to look at how to monitor and use intervention funds. We will ensure that the funds go to the right people and also monitor the use of the funds. We are also refining the Anchor Borrowers’ Programme, and other intervention schemes that we have.

Listening to questions concerning lower tariffs, we must pay higher tariffs, these sorts of things are inevitable. What we are trying to do is not increase tariffs for now, but how we can ensure we clean up the entire value chain. I’m sure you are aware of the Payment Assurance Guarantee which we put in place for over N700billion to ensure gas is paid for and for liquidity in the whole value chain.

Today, we will be meeting with the World Bank on a scheme they have been working with us on to fund the entire value chain, and ensure we transit smoothly from where we are, to a much more market-determined policy for electricity. This will involve a fair amount of subsidy and help the Federal Government and World Bank are working together on that. There is no way of sustaining the current subsidies long term, but we want to ensure the process is smooth.

Dealing with the gridlock in Apapa port, the first thing to recognize is that the port is meant to be a 34 million metric tonnes capacity port. Now it is doing 80million metric tonnes, so it is obviously a port far too small for the size of business it is doing.

We have met with all of the important stakeholders, asides from those who do their business there like Flourmills, Dangote and BUA. We have also met with the Navy, Police, NPA, Lagos State Government, all federal agencies working in the ports and port concessionaires.

At our last meeting, we worked on a number of initiatives and agreed on a number of things that have to be done. I went personally to see for myself what was going on in the port area. There is a major problem there, but everyone has agreed on what to do and there is a plan which we are executing. Nothing would happen overnight, but we have a good plan that will make it work.

We have taken a number of decisions; empty containers are to be relocated to holding bays, shipping companies would no longer be allowed to operate holding bays within the port, tank farms would not to be permitted within the Apapa area and process licensing access to trailer parks by NPA to commence. A task force has been set up to manage traffic within the Apapa and Tin Can Island environs.

The PEBEC team has been monitoring what’s going on and we are watching closely to solve the problem. As you can imagine, it is a long running problem and the roads in that neighborhood are extremely bad but we are trying to fix them.

We agreed that Dangote Group will carry out palliative works and reconstruction of some major sections of the Apapa road, which is expected to be completed by June 2018. Procurement processes have also been concluded for construction of Liverpool road to Tin Can, to Mile 2, Oworonshoki up to the toll gate. The Honeywell Group has committed to construct a trailer park, they have started and will complete it very shortly. BUA Group agreed to do the works around the Tin Can Island road. We have it in hand, and we are watching and following up on it.

On excise duty, I have read the PWC study, which goes in one particular direction. And being a professor and having read several studies, I know how studies can generally represent the point of view that you prefer. We will consult the study, and make sure that this does not hamper business and raise costs in any way to discourage production.

On poultry, we go back to the problem around smuggling and what to do when supply does not meet demand. There is a huge demand for poultry and despite local production, people are still buying imported poultry. Just as we did, with tomatoe paste industry, we must work something out with poultry. In developing the policy for the tomatoe industry, we were quite sure of what it would take to bring local production to the point where cost don’t go high because we are banning imports. We have got a fair balance and soon all will see the policy as a good one. With poultry, it is a similar situation, it is something we must work on and the Honourable Minister of Agriculture will work on that, so that we can get some sort of balance.

Smuggling is a serious threat to our economy, and Mr. President has asked me to head a team to work out what needs to be done. We are making the point to our neighbors, that smuggling is an existential threat, we can’t permit the level of smuggling going on.

Last year, there was over 500,000 metric tonnes of rice around Christmas, which the Minister of Agriculture told us about and how it came in through one of our neighbours, but we blocked it.

Now, three shiploads of rice have left Thailand, 120,000 metric tonnes, going to this same neighbour of ours who have very large warehouses where they store this rice. It is very clear that this rice is for us because our neighbours don’t consume parboiled rice, they consume the white broken rice. It is clear that our neighbours do excellent business, with allowing rice to come into Nigeria and other products including poultry

I think it is important for us as a country, to make the point clear, that we are not going to accept that. We are all within the same economic zone and work together, so we go in a friendly and polite manner as possible, to ensure that this practice stops.

For those who are familiar with it, the duty in some of these neighboring countries, especially for rice, is deliberately set lower than ours, it is about a fourth of ours. We have increased duty tax so as to discourage importation but they would naturally drop duty to encourage import and then it would come to Nigeria.

I think we are at a point where we are making a fair amount of progress with the land issues also with the State Governors. It is not a problem we can solve overnight. For titling of land, banks find it difficult to accept lands just as it is, banks won’t accept the lands without titles, one of the issues we are working with State Governments is to ensure titles are done effectively and effectively as quickly as possible. Lagos, Kano and Rivers are working very well with us.

We have an Ease of Doing Business initiative for the sub-nationals, and at the moment, a road show is going on, trying to encourage State Governments to work with us. There is no national policy on land titling.

With respect to land clearing, we have heard from BOI and Minister of Agriculture on how we need to assist States, particularly the Southwest, to ensure that we support land clearing.

I have noted the suggestions that have been on a standing -consultative forum on agriculture and agri-business. This will be extremely useful and we should do. How we should go about it will be left with the Minister of Agriculture and Minister of Industry, Trade and Investment to work those out.

So let me again express my gratitude to your all for you time and for all of what you have done to make the Nigerian economy work well. All of us know how difficult it has been, but I am encouraged by the efforts which individuals, associations and groups are making to improve things, our circumstances and our situation as an economy.

We are all firmly of the view that this country can do a lot more than what it is doing if we get the infrastructure and incentives right. This country can be one of the major agriculture and agric-business centres in the world. I am sure if we work together we can achieve all of that.

Fundamental to our economic policy is private sector leadership, and we have emphasized that time and time again. We have tried to establish several public – private sector platforms including this one, the quarterly business forum. The constant engagement in my view is the way to go. If we continuously engage and interact this way, we will resolve most of the problems that stand in the way of our becoming the great economy that our country surely has the potential to be.

Thank you once again, and I hope that you will be able to spend a few minutes at lunch.

Thank you.

Released by
Laolu Akande
Senior Special Assistant to the President on Media and Publicity
Office of the Vice President
November 27, 2017

Press Release: Highlights of 82nd NEC Meeting

An Ad-Hoc Committee of the National Economic Council has reported back to the Council that a number of revenue-generating agencies may have significantly under remitted returns to the Federation Account. This was disclosed earlier today at the monthly NEC meeting presided over by Vice President Yemi Osinbajo, SAN.

The Council had previously ordered the forensic audit to review remittances of the agencies covering 2010 to May 2015. While Council received an updated interim report today, a final report is awaited next month.

The Finance Minister, Mrs Kemi Adeosun, also informed the Council that a list of about 500 Nigerians with property and trusts abroad has been obtained to determine their tax compliance status at home.

She explained that such Nigerians can take advantage of the Voluntary Assets & Income Declaration Scheme, VAIDS, to settle past taxation defaults.

Letters would soon be going out to these Nigerians, including a number of prominent ones, asking them to take advantage of the tax amnesty in order to avoid prosecution and fines by simply paying up their tax defaults. The amnesty is available till March next year.

Highlights:

A. PRESENTATION BY THE NEC COMMITTEE ON EXPORT PROMOTION BY JIGAWA STATE GOVERNOR, CHAIRMAN OF THE COMMITTEE

The NEC Ad-hoc Committee set up in September, 2017 to advise Council on export promotion submitted its report.

The report dwelt extensively on an export promotion plan geared towards achieving government’s policy on the “Zero Oil Plan”.

The Committee recommended, among other things;

1. The establishment of a National Committee on Export Promotion, chaired at the Presidency level.
2. A Technical Committee involving Federal and States MDAs to help provide technical information and direction to the proposed Committee.

The Ad-hoc Committee also recommended;

1. That Export procedures and documentation be streamlined.
2. The identification of existing domestic investors and engagement plan for output expansion.
3. ​The establishment of more laboratories and tasting centres to help improve quality and standard of export.
4. The domestication of the Office of Technical Regulation (OTR) as recommended by UNIDO.
5. On Market for Nigerian products, the Committee recommended the Deepening of Commercial diplomacy, one-stop shops for export and a National Export Portal to generate global orders to link suppliers to buyers.
6. On Value Chain Development, the Committee recommended the development of clusters along product value chain, market driven research and development, and the provision of seeds and seedlings.
7. On Financing, the Committee recommended the recapitalization of NEXIM Bank, the provision of Export Development Fund, in line with NEPC Act, a five-year financial window on export expansion grant and funding scheme for exporters similar to the CBN Anchor Borrowers programme.
8. The Ad-hoc Committee also recommended a one-state-one-product approach based on comparative advantage for export drive.
9. The establishment of State Committees on “Zero Oil Plan Implementation” with State Governors as Chairmen was also recommended.

B.​ INTERIM REPORT ON THE FORENSIC AUDIT OF REVENUE ACCRUED FROM REVENUE GENERATING AGENCIES INTO FEDERATION ACCOUNT, EXCESS CRUDE ACCOUNT AND CONSOLIDATED REVENUE FUND BY GOVERNOR OF GOMBE STATE, CHAIRMAN OF THE AD-HOC COMMITTEE

The forensic audit covers the period from 2010 – May 2015.

The Council was informed that there were possible significant under-remittances from certain Revenue Generating Agencies to the Federation Account, among other accounts.

Council was also informed of questionable loans granted by some of the Revenue Generating Agencies.

Out of the 18 Agencies in which forensic audit was conducted, the Committee completed work on 13 Agencies, 2 are ongoing and 3 are not revenue generating.

The 13 include: NIMASA, NNPC, NPA, FIRS, NPDC, DPR, etc. The 2 outstanding agencies are the Customs Service and NCC.

Council directed the Committee to conclude its report under 4 weeks and fully report back to Council in the next meeting

C. PRESENTATION OF A PROPOSAL BY THE NATIONAL AGENCY FOR SCIENCE AND ENGINEERING INFRASTRUCTURE (NASENI) ON SOLAR-POWERED ELECTRONIC VOTING SOLUTION, WITH CLOUD-BASED COLLATION OF ELECTION RESULTS

The Executive Vice Chairman/CEO of the NASENI presented a home-grown proposal to the NEC for the replacement of the “Card Reader” in the conduct of elections in the country.

The proposal is a made-in-Nigeria “Solar-Powered Electronic Voting System” to effectively mitigate current electronic woes.

The new proposed robust e-voting device will minimize human interference with the electoral process.

The same proposal, which has already been presented to INEC, is also expected to be presented to the National Assembly.

D1. UPDATE ON STATE OF THE ECONOMY BY BUDGET AND PLANNING MINISTER

​The Minister of Budget and National Planning gave an update on the economy as follows:

Signs of recovery had been observed since Q3 2016 and the Recovery consolidated in Q3 2017, with GDP doubling to 1.40%

Non-oil GDP contracts in Q3 2017 increased by 0.76% after growing in Q1 R Q2 2017, while the Services Sector is still in the negative; the Manufacturing Sector was negative in Q3 2017 also.

Due to high inflationary pressures, household consumption expenditures remain constrained, though it appears such pressure is easing.

Headline inflation has declined since January – reflecting tight monetary policy.

Food price increases have remained persistent but slowing down.

The total value of capital importation at the end of Q3 2017 stood at $4.14 billion (131.3% growth year-on-year).

D2.​ REPORT ON EXCESS CRUDE ACCOUNT (ECA)

The Accountant General of the Federation informed Council that balance in the ECA as at November 17, 2017, stands at $2,309,693,583.35

D3. ​UPDATE ON THE BALANCE OF THE STABILIZATION FUND ACCOUNT

The Accountant General informed Council that as at November 17, 2017, the balance in the (SFA) stood at N6,689,072,836.11

D4. UPDATE ON NATURAL RESOURCES DEVELOPMENT FUND ACCOUNT

The Accountant General informed Council that the balance as at November 17, 2017 stand at N100,314,169,190.23

D5. UPDATE ON BUDGET SUPPORT LOAN FACILITY

The Accountant-General reported to Council that approval has been received and CBN has been directed to pay N800 million to each of the 35 States of the Federation.

Governors expressed appreciation to the Federal Government for the restoration of the Budget Support Loan Facility for July and August, 2017.

ANY OTHER BUSINESS (AOB)

A. ANAMBRA GOVERNOR ELECTION

The Governor of Anambra State commended President Muhammadu Buhari for the conduct of free, fair and credible elections in the State.

B. VAT

The Honourable Minister of Finance informed Council that the month of October 2017 has recorded the highest amount of VAT collections ever recorded in the country in a single month, standing at over N89 billion.

She told Council that Government is targeting N120 billion on a monthly basis in the coming years.

C. VAIDS

Is progressing very well and the target is likely to be met.

A list of about 500 Nigerians who are believed to have under-declared their assets has now been obtained.

VAIDS offers an amnesty opportunity for such and all tax defaulters.

D.​ BURIAL OF FORMER VICE PRESIDENT

The SGF, Boss Mustapha, informed Council that the FG has set up a National Burial Committee for former Vice President Alex Ekwueme.

The Committee would be chaired by the Office of the SGF with the full participation of the Anambra State Government and the Ekwueme family

Laolu Akande
Senior Special Assistant to the President on Media & Publicity
Office of the Vice President
23 November 2017

Speech: President Buhari at the Inauguration of the National Economic Council (NEC)

2. Your Excellencies, the regular meetings of the National Economic Council have remained the official economic platform for dialogue among the thirty six (36) State Governors, the Governor of Central Bank of Nigeria and other co-opted members, chaired by the Vice President, where issues and challenges facing the development of the country, at national and sub-national levels, are discussed with a view to develop and harmonize common strategies for addressing them.

3. You may recall, that in my inaugural speech, on May 29, 2015 I stated that the primary objective of this Administration is to tackle insecurity; youth unemployment, through the revival of agriculture, solid minerals mining, as well as small and medium size businesses. I also highlighted pervasive corruption; fuel and power shortages; public service reforms; and the need to allow every tier of Government to exercise its constitutional responsibilities, among others. We are fully committed to embarking on sustainable visionary initiatives and programmes that will restructure and transform our national economy. We are also committed to ensuring collaboration and facilitation of the International efforts to combat threats of cross-border terrorism, sea piracy, refugees, Internally Displaced Persons (IDPs), financial crimes, cyber crimes, climate change; the spread of communicable diseases and other challenges of the 21st century.

4. I urge you all to ensure that we surmount these enormous challenges facing us as a country by working to support economic policies, which the government will soon unveil to grow our economy and finance our external promises.

5. I am pleased to note that the Council meetings have, over the years, been very constructive and productive, and the key outcomes as well as recommendations translated into Government policies at the Federal and state levels. This has not only facilitated national economic planning, but also lead to over- all political harmony. It is also reassuring to note that steps have been taken in the past to strengthen the effectiveness of the Council in its role as prime adviser on developments in the economy. This process must be geared up substantially especially in the difficult times that we have now found ourselves. The National Planning Commission must continue to work to arrive at workable consensus on Government policies among the various tiers of Government, which is a prerequisite for sustained growth and development.

6. Your Excellencies, it is evident that the task of ensuring growth, job creation and equity, is quite enormous. Consequently, we must kick-start this process by cultivating a culture of prudent management of resources at all levels of Government. This will entail looking inwards to secure sustainable ways of increasing Internally Generated Revenue (IGR); and harnessing growth potentials of each State to supplement the Federation Account allocation to States. The States are also encouraged to embark on projects that will meet immediate needs of the people taking account of available resources. I therefore urge Council members to consider, as a matter of urgency, exploring efficient means of gradually liquidating all unpaid salaries of staff, which have brought untold hardship to thousands of families.

7. I would like also, as a former Governor myself to remind us the need for neighbouring states to cooperate closely on projects such as interstate and feeder roads, soil erosion, desertification and other developmental programmes. Our country is one and we who have the responsibility to run it lead by example. As far as is possible there should be distance between politics and development programmes.

8. On its part the Federal Government will abide by the provisions of Sections 80 and 162 of the Constitution and ensure more accountability, transparency and integrity in the Distribution of the Federation Account. All Revenue Generating Agencies such as Nigeria National Petroleum Corporation (NNPC), Nigeria Customs Services (NCS), Federal Inland Revenue Services (FIRS), Nigeria Ports Authority (NPA), Central Bank of Nigeria (CBN), Nigeria Maritime Administration and Safety Agency (NIMASA) and Liquefied Natural Gas (LNG) amongst others shall comply with stipulated Financial Regulations and Administrative Instructions in their remittances into the Consolidated Revenue Fund.

9. On Insurgency, the Nigerian Armed Forces have shown renewed commitment and made steady progress in the fight against Boko Haram. Nigeria, under the auspices of the Lake Chad Basin Commission and the Republic of Benin is collaborating with the Republics of Niger, Chad, Cameroun and Benin to consolidate cross-border and international efforts at eradicating the insurgency. I am also happy to reiterate that following my invitation to Germany early this month by the G7 Nations who have shown concern about the Insurgency and promised to intervene to restore the destroyed infrastructure, schools and hospitals amongst others, I have directed the front line states of Borno, Yobe and Adamawa to articulate realistic assessments, costs, locations on Local Government by-Local-Government of affected facilities for submission to the President of the G7 for further verification. In addition, the requirements of the Military have been prepared by the Service Chiefs for the consideration of the G7 Nations.

10. Let me reiterate the high expectations of the NEC as a veritable source of articulating policies and programmes that are people centred and capable of driving further, the expected growth and development of the country as well as providing environment required for progress.

11. Finally, I will like to express my appreciation to the Vice President, Prof. Yemi Osinbajo, SAN and all Council members for the honour and priviledge to formally inaugurate the National Economic Council today and to wish you all a successful tenure.

Thank you for your attention.