By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Following the launch of the Economic Recovery and Growth Plan (ERGP) by President Muhammadu Buhari a week ago, Nigeria is expected to make N75.03 trillion investment, bulk of which is expected from the private sector.
Professor Olu Ajakaiye former Director-General of the Nigerian Institute of Economic Research said this at the second annual lecture of the Centre for Financial Journalism in Lagos entitled “ Nigeria’s Economic Recovery and Growth Plan: Options for Low Cost Financing of the Programmes”
“Clearly, the bulk of the investment programme is expected to come from the private sector,” he said.
According to him, to achieve the broad and associated sub-objectives detailed in the projected N73.03 trillion gross domestic ERGP investment, contribution from the Federal and subnational governments will declined from 14.04 percent to 12.61 percent in 2017 to 8.11 percent and 7.7 percent by 2020 respectively.
“Correspondingly, the contribution of the private sector is expected to rise from 73.35 percent in 2017 to over 84 percent by 2020,” Professor Ajakaiye added.
He also noted that subnational governments are expected to contribute at least N1.85 trillion in capital expenditure annually throughout the plan period.
The erudite Professor said that the ERGP had as its major focus restoring growth, investing in people (human capital development) and building a globally competitive economy.
Professor Ajakaiye affirmed the plan envisaged 21 programmes, 60 strategies and 265 key activities with designated lead stakeholders to drive the process.
He further affirmed that all of the Federal Government investment programme will be funded through borrowing, raising the need for a deficit financing that comes at a low cost.
Some of the options he highlighted for the financing of the economic recovery plan include the following; a robust tax system, strategic public-private partnership models, remittances & diaspora bonds and co-financing agreements with pension funds and foreign direct investments.
Abiodun Adedipe an economist, who was a panelist at the lecture dwelled on the need for clear incentives from the ERGP, that will woo the private sector and also made a strong case for the safety of investments in the country.
On her part, Ibim Semenitari, former Ag MD of the Niger-Delta Development Commission (NDDC), called for transparency from the government in the implementation of the ERGP.
