Doc IDLastModifiedPrinted|DR. NGOZI OKONJO-IWEALACoordinating Minister for the Economy &Hon. Minister of FinanceAndDr. Yer...
Doc IDLastModifiedPrinted| 1Mission StatementTo manage the Nation’s finances in anopen, transparent, accountable andeffici...
Doc IDLastModifiedPrinted|Ministry of Finance: Key Objectives2Supportfor JobCreationMacroEconomicManagementMobilizingFinan...
Doc IDLastModifiedPrinted| 3Supportfor JobCreationMacroEconomicManagementMobilizingFinancesfor RealSectorActivitiesPut in ...
Doc IDLastModifiedPrinted|• Dollar exchange rate has been between ₦155 and ₦160 over the lasttwo yearsExchange Rate is Sta...
Doc IDLastModifiedPrinted| 5MACRO ECONOMIC MANAGEMENTProjected GDP Growth (%) 2013Sub Saharan Africa 5.6Emerging Markets 4...
Doc IDLastModifiedPrinted| 61 FootnoteSOURCE: Nigeria Sovereign Wealth Investment Authority; Federal Ministry of FinanceUS...
Doc IDLastModifiedPrinted| 7MACRO ECONOMIC MANAGEMENTThe 2013 budget prepared in record time andpassed on 20th December 20...
Doc IDLastModifiedPrinted|• Policy is to reduce recurrent expenditure and complete unfinished capitalprojects- Recurrent e...
Doc IDLastModifiedPrinted| 9Government Borrowing is Declining:TotalDebtStockFlow ofDomesticBorrowingNote: Domestic and Ext...
Doc IDLastModifiedPrinted|Tax TypePetroleumProfit Tax% increasein non-oilTaxes- 39.2% 27.5%SOURCE: Federal Inland Revenue ...
Doc IDLastModifiedPrinted| 11Measures TakenNext steps: Intensify drive to improve non-oil tax revenuesCompliance &Enforcem...
Doc IDLastModifiedPrinted|1 Total collections between Jan and Oct 2012, compared to the same period in 2011SOURCE: Nigeria...
Doc IDLastModifiedPrinted| 13Measures Taken▪ Upgrade of the ASYCUDA system to version 3.0▪ Integration of Customs Operatio...
Doc IDLastModifiedPrinted|Expenditure Side Measures TakenIntroduction of the Government Integrated Financial Management an...
Doc IDLastModifiedPrinted|A New Petroleum Subsidy Payment Regime Is In PlaceTo Help Stem Leakages15…Revised Process (2-ste...
Doc IDLastModifiedPrinted| 16Contributory Pension Scheme Is Sound But Defined BenefitsScheme Is Being Reformed To Prevent ...
Doc IDLastModifiedPrinted|• Ratings by international agencies like Fitch, Standard & Poor’s, andMoody’s have improved to B...
Doc IDLastModifiedPrinted|Of the FG’s ₦180 billion budgeted for the 2012 SURE-P, ₦86.5 billion was spent. The remainingbal...
Doc IDLastModifiedPrinted|Developing the Nigerian Financial Systems19MACRO ECONOMIC MANAGEMENTFAACBClean-up of theBanking ...
Doc IDLastModifiedPrinted| 20Government Has Been Reforming The Financial Sector…Cleanup of the BankingSystem Complete…Gove...
Doc IDLastModifiedPrinted| 21Federation Accounts Allocation Committee (FAAC)DMACRO ECONOMIC MANAGEMENT FAAC meeting for t...
Doc IDLastModifiedPrinted|Exports Expansion Grant (EEG): Summary ofPerformance of ExportersEligibility Criteria Threshold ...
Doc IDLastModifiedPrinted| 23Supportfor JobCreationMacroEconomicManagementMobilizingFinancesfor RealSectorActivitiesSuppor...
Doc IDLastModifiedPrinted| 24AgricultureFederal Ministry of Finance▪ ₦30 billion credit risk guarantee to Nigeria’s commer...
Doc IDLastModifiedPrinted| 25TransportFederal Ministry of Finance▪ US$4 billion – Letter of comfort to supportinvestment i...
Doc IDLastModifiedPrinted|The Ministry negotiated the following financing agreements totalling~US$12 billion to support th...
Doc IDLastModifiedPrinted|The Ministry negotiated the following financing agreementstotalling ~US$12 billion to support th...
Doc IDLastModifiedPrinted|The Ministry negotiated the following financing agreementstotalling ~US$12 billion to support th...
Doc IDLastModifiedPrinted| 29 To address two key issues: Mainstreaming government efforts to improve the lives of girls ...
Doc IDLastModifiedPrinted| 30MOBILIZING FINANCES FOR REAL SECTOR ACTIVITIES▪ NEXIM being retooled to enhance support to th...
Doc IDLastModifiedPrinted| 31Supportfor JobCreationMacroEconomicManagementMobilizingFinancesfor RealSectorActivitiesSuppor...
Doc IDLastModifiedPrinted| 32Port Reforms in conjunction with the Ministry of Transport,Works, Presidency and the Lagos st...
Doc IDLastModifiedPrinted| 33B Support to Other Sectors: PowerSUPPORTING ENABLING REFORMSKey MeasuresChair of the board of...
Doc IDLastModifiedPrinted| 34C Support to Other Sectors: HousingSUPPORTING ENABLING REFORMSMortgage Refinance Company (MRC...
Doc IDLastModifiedPrinted| 35D Support to Other Sectors: Sports and ManufacturingSUPPORTING ENABLING REFORMSSports Examin...
Doc IDLastModifiedPrinted| 36E Support to Other Sectors: AgricultureSUPPORTING ENABLING REFORMSSpecific MeasuresIntroduced...
Doc IDLastModifiedPrinted| 37SUPPORTING ENABLING REFORMSSupport to Other Sectors: WorksFSupporting the Construction of the...
Doc IDLastModifiedPrinted| 38SUPPORTING ENABLING REFORMSSpecial InitiativesMr. President announced a ₦3 billion grant prog...
Doc IDLastModifiedPrinted| 39Supportfor JobCreationMacroEconomicManagementMobilizingFinancesfor RealSectorActivitiesSuppor...
Doc IDLastModifiedPrinted| 40Youth Enterprise with Innovation in Nigeria(YouWiN!) ProgramYouWiN! Results• Trained 12,000 a...
Doc IDLastModifiedPrinted| 41COMMUNITY SERVICES SCHEME (CSS) &GRADUATE INTERNSHIP SCHEME (GIS)Community Services Scheme• 3...
Doc IDLastModifiedPrinted| 42THANK YOU!!!
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#MP2013 Presentation by the Minister of Finance, Dr. Ngozi Okonjo-Iweala

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Ministerial Platform 2013

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Transcript of "#MP2013 Presentation by the Minister of Finance, Dr. Ngozi Okonjo-Iweala"

  1. 1. Doc IDLastModifiedPrinted|DR. NGOZI OKONJO-IWEALACoordinating Minister for the Economy &Hon. Minister of FinanceAndDr. Yerima NgamaHon. Minister of State of FinanceJune 10, 2013MINISTERIALPLATFORM:FEDERAL MINISTRY OF FINANCE
  2. 2. Doc IDLastModifiedPrinted| 1Mission StatementTo manage the Nation’s finances in anopen, transparent, accountable andefficient manner that delivers on thecountry’s development prioritiesMission Statement
  3. 3. Doc IDLastModifiedPrinted|Ministry of Finance: Key Objectives2Supportfor JobCreationMacroEconomicManagementMobilizingFinancesfor RealSectorActivitiesSupportingEnablingReforms
  4. 4. Doc IDLastModifiedPrinted| 3Supportfor JobCreationMacroEconomicManagementMobilizingFinancesfor RealSectorActivitiesPut in placeEnablingReforms
  5. 5. Doc IDLastModifiedPrinted|• Dollar exchange rate has been between ₦155 and ₦160 over the lasttwo yearsExchange Rate is Stable• Inflation rate has slowed to 9.1% from 12.4% in May 2011Rate of Inflation is Coming Down• From $32.08 billion in May 2011 to $48.4 billion as of May 2013• Excess Crude Account (ECA) - (Component of External Reserves)- Rise from about $4 Billion in May 2011 to around $9 billion at theend of 2012, but now about $6 billion in May 2013- ECA now helping us since oil production has fallen from theprojected 2.53 million bpd to between 2.1 – 2.2 million bpdExternal Reserves are Rising7MACRO ECONOMIC MANAGEMENTThe Economy is Strong but Faces Challenges ofInequality & Inclusion
  6. 6. Doc IDLastModifiedPrinted| 5MACRO ECONOMIC MANAGEMENTProjected GDP Growth (%) 2013Sub Saharan Africa 5.6Emerging Markets 4.2Major Economies (G7) 1.2South Africa 2.8Brazil 3.0China 8.0Russia 3.4India 5.7• GDP growth in 2013 projected at 6.75% (NBS) and 7.2% (IMF)GDP Growth is one of the fastest in the World
  7. 7. Doc IDLastModifiedPrinted| 61 FootnoteSOURCE: Nigeria Sovereign Wealth Investment Authority; Federal Ministry of FinanceUS$1 billionearmarked forinvestment in the3 arms i.e.Stability Fund,InfrastructureFund and FutureGeneration FundManagementteam hasdeveloped acomprehensivestrategydocument whichwas presented atits inauguralboard meeting on13th November2012The NSIA tocommence coreinvesting activitiesfrom Q2 2013 andcurrently evaluatingpotentialinfrastructureinvestmentopportunities1The Board of theNigeria SovereignInvestmentAuthority wasInaugurated on9th October, 201223 4Sovereign Wealth Fund is in Place…President Jonathan’s Administration believes that putting asidesome money for emergencies is important just as we all do forour families. So this administration has supported a policy ofsavings
  8. 8. Doc IDLastModifiedPrinted| 7MACRO ECONOMIC MANAGEMENTThe 2013 budget prepared in record time andpassed on 20th December 2012This provides the Government 12 monthsexpenditure program and time to spend thefundsThis also provides a boost to domestic andinternational confidence in the country’s fiscalmanagementBreaking the Budget Jinx
  9. 9. Doc IDLastModifiedPrinted|• Policy is to reduce recurrent expenditure and complete unfinished capitalprojects- Recurrent expenditure has dropped from 74.4% of total budget in 2011 to68.7% in 2013• Envelop system developed to enable Ministers prioritize uncompleted capitalprojectsCost of Government is Reducing• Government focusing on sectoral waivers rather than individual. e.g.agricultural, power, aircraft spare parts, solid minerals at zero dutyWaiver and Tariff Policies have Changed• Imports are down (textiles, plastic & rubber, paper & paper making material),and exports are up (plastic & rubber, vegetable products, prepared food stuffand beverages).- Non-oil exports have increased from 9% of total exports in 2008 to 31% in2012- Oil exports are now 69% of total exports, compared to 91% in 2008Trade has Improved8MACRO ECONOMIC MANAGEMENT
  10. 10. Doc IDLastModifiedPrinted| 9Government Borrowing is Declining:TotalDebtStockFlow ofDomesticBorrowingNote: Domestic and External Debt Stock figures for 2013 are as at end of March 2013)SOURCE: Debt Management OfficeDomesticExternal200524852 744 5881,3601551071,753 2,170 2,320 3,2394,5525,623 6,346 6,493427585488450683978888Debt/GDPRatio (%)Our National Debt is Low104111.9% 12.6% 11.6% 15.4% 17.3% 18.2%15.4%2006 2007 2008 2009 2010 2011 2012 201321%SouthAfrica 42.7%Sub-SaharanAfrica 34.2% USA 106% Japan 225% UK 90%MACRO ECONOMIC MANAGEMENTTotal Debt is ₦7.5 trillionExternal Debt is US$6.6bn (₦1.04 trillion)NGN, BillionsSlowed Down Growth of Debt Stock:YEAR
  11. 11. Doc IDLastModifiedPrinted|Tax TypePetroleumProfit Tax% increasein non-oilTaxes- 39.2% 27.5%SOURCE: Federal Inland Revenue ServiceNon-OilTaxesTotalTaxes1,866 1,847 2,97238.1% 14.6%8.0%2,198 4,628 5,0072,8399393,2013,0711,4802,0611,1321,3535147159111,8061,5581,3591,25816.0%NGN, Billions2006 2007 2008 2009 2010 2011 2012Increasing Revenue ReceiptsMACRO ECONOMIC MANAGEMENTYEAR
  12. 12. Doc IDLastModifiedPrinted| 11Measures TakenNext steps: Intensify drive to improve non-oil tax revenuesCompliance &Enforcement▪ Recovery of tax arrears in the sum on ₦704.8 million▪ Tax investigation and enforcement activities led to the recovery ofover ₦10.65 billionTax Policies &LegislativeIssuesB ▪ National Tax policy formally launched by Mr. President in April 2012▪ Nigeria /Mauritius Double Taxation Agreement (DTA) signed inAugust 2012Modernizationof TaxAdministration& OperationC ▪ Commenced implementation of the Integrated Tax AdministrationSystem (ITAS) project▪ Registered 227,140 new taxpayers in 2012▪ Implemented full taxpayer segmentation▪ Full restructuring of Tax offices nationwide▪ Roll-out nationwide Tax Identification NumberAIncreasing Non-oil Revenues (Measures taken to Improve Non-oil Revenues)MACRO ECONOMIC MANAGEMENT
  13. 13. Doc IDLastModifiedPrinted|1 Total collections between Jan and Oct 2012, compared to the same period in 2011SOURCE: Nigerian Customs ServiceFederalCollectionsTotalCollections345 413 470Non-FederalCollectionsAnnualincrease(%)– 19.8% 13.9%514 7425479.2% 35.7% 9%6.4%190239275 304 318431 436155 175 196 210 229311 29773212006 2007 2008 2009 2010 2011 2012NGN, BillionsIncreasing Revenue Receipts: Improvement in Customs RevenueMACRO ECONOMIC MANAGEMENTYEAR
  14. 14. Doc IDLastModifiedPrinted| 13Measures Taken▪ Upgrade of the ASYCUDA system to version 3.0▪ Integration of Customs Operation (Platform) through aportal named Nigeria Integrated Customs InformationSystems (NICIS) thus eliminating multiple submissionof cargo and goods documentation to severalstakeholders e.g. Bank, CBN, Freight Companies, etcDeploymentof ICT▪ Online real-time processing of Custom’sdocuments/manifest by shipping/airlines▪ Simplification and harmonization of Customs clearanceprocedures, in line with international best practice▪ Electronic tracking and auditing of Customs operationsand transactionTradeFacilitation▪ Disbanded hinterland Customs Check points andoutlawed duplicity in cargo examination by Agencies atthe ports▪ Anti-smuggling efforts▪ Training, Training school etcStepping upAnti-SmugglingActivitiesCBAMeasures Taken to Improve Customs PerformanceMACRO ECONOMIC MANAGEMENT
  15. 15. Doc IDLastModifiedPrinted|Expenditure Side Measures TakenIntroduction of the Government Integrated Financial Management andInformation System (GIFMIS) in April 2012.• GIFMIS is aimed at improving the acquisition, allocation, utilization andconservation of public financial resources using automated and integrated,effective, efficient and economic information systems.• 58% of the budget now executed through GIFMIS. Will rise to 79% by end ofthird quarter 2013.Treasury Single Account (TSA) is a unified structure of governmentbank accounts that gives a consolidated view of the cash position.• 93 MDAs are currently on TSA• Government’s overdrawn position has dropped from ₦102 billion in 2011to ₦19 billion in 2012The Integrated Payroll and Personnel Information System (IPPIS):• Enhances efficient personnel cost planning and budgeting as personnel costwill be based on actual verified numbers and not estimates• 215 MDAs (153,019 staff) are on IPPIS as at Jan 2013• Savings on Payroll cost to date is ₦118.9 billion• Work ongoing to bring in other 321 MDAs not yet on IPPIS• About 46,821 ghost workers identified14Government Has Put In Place Systems To Increase Efficiency InPublic Financial ManagementIPPISGIFMISTSAMACRO ECONOMIC MANAGEMENT
  16. 16. Doc IDLastModifiedPrinted|A New Petroleum Subsidy Payment Regime Is In PlaceTo Help Stem Leakages15…Revised Process (2-step audit process)Old Process…Marketer PaidAuditor: Witnessesphysical dischargePhysical verification Quantity discharged Claim to be paidAuditor #1: Witnessesphysical dischargePhysical verification Quantity dischargedAuditor #2:Fiscal verification• We audited ₦1 trillion in subsidy and found ₦232 billion questionable. Sofar, we have recovered about ₦14 billion. We have tightened the paymentprocess• PPPRA reduced the number of oil marketers from 143 to 32Marketer PaidMACRO ECONOMIC MANAGEMENT
  17. 17. Doc IDLastModifiedPrinted| 16Contributory Pension Scheme Is Sound But Defined BenefitsScheme Is Being Reformed To Prevent FraudBackgroundObjectives• The Federal Government Defined Pension Scheme is decentralized and managedby several pension offices/department and is inconsistent with the intention ofthe Pensions Reform Act (2007)• The Pensions Reform Act (2007) establishes a pension department known asPensions Transitional Arrangement Department (PTAD) to oversee themanagement of pensions under the Defined Benefits Scheme for pensioners nottransiting to the Contributory Pensions Scheme• Following Mr. President’s directive to ensure strict compliance with theprovisions of the Pensions Reform Act (2007), the CME/HMF inauguratedan Inter-Ministerial Committee in August 2012 headed by the Director-GeneralPensions Commission (PenCom) to carry out Mr. President’s instruction• The Inter-Ministerial task was structured into two phases:o Phase One: Design the governance and operating framework for thePTADo Phase Two: Data validation and authentication of the existing pensionersdatabase and the development of an authentic databaseKeyAchievements• Phase one completed and Phase Two is underway• Result: All Defined Benefit Pension Systems for Civil Service, Police,Prisons, Immigration, Customs etc. will be managed in onedepartment reporting to Ministry of Finance with direct payment tobeneficiaries based on biometricsDefined Benefits Scheme:MACRO ECONOMIC MANAGEMENT
  18. 18. Doc IDLastModifiedPrinted|• Ratings by international agencies like Fitch, Standard & Poor’s, andMoody’s have improved to BB- (or equivalent)• As a result, Nigerian corporates are able to borrow at cheaper rates on theinternational credit markets• A number of our banks have gone to raise funds abroad e.g. Access Bank($350 million Euro Bond), GTB ($350 million Euro Bond), Fidelity Bank($300 million Euro Bond)Nigeria’s Credit Ratings Have Improved• Domestic bonds included in JP Morgan and Barclays emerging marketIndex• About $7 Billion invested in Nigeria by foreign investors in 2012• Nigeria has become the highest investment destination in AfricaInternational Investors are More Interested in NigeriaStrong Economic Performance Has Received International ValidationMACRO ECONOMIC MANAGEMENT17
  19. 19. Doc IDLastModifiedPrinted|Of the FG’s ₦180 billion budgeted for the 2012 SURE-P, ₦86.5 billion was spent. The remainingbalance of ₦93.5 billion was carried over into the 2013 SURE-P budget bringing its sum to about₦273.5 billion in projected expenditure.Subsidy Reinvestment Program (SURE-P)S/N Classification/Projects2012(Annual Budget,N’ Bns)2013(Annual BudgetN’ Bns)A SOCIAL SAFETY NETS (e.g. Maternal & Child Health,Mass Transit, Community Services, GraduateInternship Scheme)38.44 40.83B NIGER DELTA Augmentation for East-West Road(Sections 1-4)21.70 42.27C WORKS (ROADS & BRIDGES) (e.g. Abuja-LokojaRoad, Kano-Maiduguri, Oweto Bridge)85.50 111.50D TRANSPORT (RAIL) (e.g. Lagos-Kano, Port-Harcourt- Maiduguri)33.36 77.42E OTHER EXPENSES (e.g. SURE-P Board, M&E) 1 1.5180.00 273.52Breakdown of FGN SURE-P BudgetSubsidy Savings 2012 2013 (Jan – May)Federal Government ₦180 Billion ₦75 BillionStates Government ₦154.6 Billion ₦64.4 BillionLocal Government Councils ₦76.4 Billion ₦31.8 billionMACRO ECONOMIC MANAGEMENT18
  20. 20. Doc IDLastModifiedPrinted|Developing the Nigerian Financial Systems19MACRO ECONOMIC MANAGEMENTFAACBClean-up of theBanking system& Reforming DFIsExportsExpansionGrants (EEG)ADEReviving theNigerian CapitalMarketCBoosting theInsuranceSector
  21. 21. Doc IDLastModifiedPrinted| 20Government Has Been Reforming The Financial Sector…Cleanup of the BankingSystem Complete…Government Policies haveSupported CapitalMarkets (e.g.Forbearance, Eliminationof VAT & Stamp Duties,etc.)• As a result, capital marketshas now rebounded…• Stock market index has risenby 71% since May 2012• Stock market capitalization(value of listed companies)has increase by 66.2% sinceMay 2012 to ₦11.8 trillion• Through government policies(e.g. introduction of micro-insurance, compliance withcompulsory insurance, etc.)more Nigerians are now awareof Insurance Policies• Number of policy holders hasalso increased from 700,000 in2010 to 1.5 million in 2012• Claims paid increased from₦37 billion in 2010 to ₦52billion in 2012• All 22 banks are now fullystable and capitalized• Non-Performing Loans havefallen to about 5%• But not enough lending isgoing on at affordable interestrates so the government is:Restructuring existing DFIs toget in private sector capitalCreating a new wholesale DFIfor 10-15 year money ataffordable ratesInsurance Sector isDoing Better…..MACRO ECONOMIC MANAGEMENTA B C
  22. 22. Doc IDLastModifiedPrinted| 21Federation Accounts Allocation Committee (FAAC)DMACRO ECONOMIC MANAGEMENT FAAC meeting for the past 4 months heldbefore the 14th of each month All tiers of Government get their accountcredited latest on 17th day of the month. Salaries are paid to Federal Governmentstaff on time This has brought some relative measure ofemployee satisfaction and industrialharmonyFAAC has served as an avenue for: Correcting misconceptions and theresolution of long standing problems Peer review amongst States Adopting best practices and learning fromthe experiences of one anotherImproved flow of revenues … Problem Solving.
  23. 23. Doc IDLastModifiedPrinted|Exports Expansion Grant (EEG): Summary ofPerformance of ExportersEligibility Criteria Threshold % Better thanThreshold 2006% Better thanThreshold 2011Value Addition 20% 40.88% 48.50%Export Growth 10% 31.36% 71.82%Capital InvestmentGrowth10% 46.37% 68.90%Employment 500 32.04% 38.56%22MACRO ECONOMIC MANAGEMENTE
  24. 24. Doc IDLastModifiedPrinted| 23Supportfor JobCreationMacroEconomicManagementMobilizingFinancesfor RealSectorActivitiesSupportingStructuralReforms
  25. 25. Doc IDLastModifiedPrinted| 24AgricultureFederal Ministry of Finance▪ ₦30 billion credit risk guarantee to Nigeria’s commercial banks to supportthe supply of fertilizers and seed by the private sectorWorld Bank▪ US$ 200 million to support the ATA for staple crop processing in the sixgeo-political zones▪ US$ 300 million support to Fadama and commercial agricultureChina Exim Bank▪ US$ 500 million importing 18 cassava processing mills and 40 riceprocessing units (under discussions)▪ US$ 75 million Rural Access and Mobility projectEnvironment World Bank▪ US$450 million – Erosion & Watershed Management in Abia,Anambra, Cross River, Ebonyi, Enugu, Imo and Edo states▪ US$120 million – Flood and Waste management, Oyo stateMOBILIZING FINANCES FOR REAL SECTOR ACTIVITIESThe Ministry negotiated the following financing agreementstotalling ~US$12 billion to support the real sector – (1)
  26. 26. Doc IDLastModifiedPrinted| 25TransportFederal Ministry of Finance▪ US$4 billion – Letter of comfort to supportinvestment in the Lekki Deep Sea portWaterWorld Bank▪ US$200 million – Water Reform Phase III Nationwide▪ US$120 million – Urban Water Supply in Cross RiverIslamic Development Bank▪ US$136.34 million – Zaria Regional Water Supply▪ US$50 million Dam project for water Supply & Irrigation inOsun stateAfrican Development Bank▪ US$81.32 million – Zaria Regional Water Supply▪ US$200 million Rivers State Water Supply ProjectMOBILIZING FINANCES FOR REAL SECTOR ACTIVITIESThe Ministry negotiated the following financing agreementstotalling ~US$12 billion to support the real sector – (2)African Development Bank▪ ₦50 billion (~US$ 330 million) for the construction ofthe East-West HighwayNiger Delta
  27. 27. Doc IDLastModifiedPrinted|The Ministry negotiated the following financing agreements totalling~US$12 billion to support the real sector – (3)26MOBILIZING FINANCES FOR REAL SECTOR ACTIVITIESWorld Bank▪ US$50 million – State Health Program Investment Credit(Ondo, Nasarawa & Adamawa)▪ US$95 million – Polio Eradication Project NationwideIslamic Development Bank▪ US$44.69 million – Upgrading of Hospital Facilities inKadunaHealthFederal Ministry of Finance▪ US$ 1 billion Eurobond (including US$600 million for Gas toPower) to be launchedWorld Bank▪ US$ 1 billion IBRD Partial Risk Guarantee (underdiscussion)China Exim Bank▪ US$765 million Zungeru Hydroelectric Power ProjectIslamic Development Bank▪ US$54.5 million Zungeru Hydroelectric Power ProjectPower
  28. 28. Doc IDLastModifiedPrinted|The Ministry negotiated the following financing agreementstotalling ~US$12 billion to support the real sector – (4)27MOBILIZING FINANCES FOR REAL SECTOR ACTIVITIESWorld Bank▪ US$150 million – State Education Program InvestmentProject (Bauchi, Ekiti & Anambra)Islamic Development Bank▪ US$17.32 million for science secondary schools inKaduna State▪ US$70 million to improve and enhance BilingualEducational SupportEducationChina Exim Bank▪ US$100 million – National Information andCommunication Infrastructure Backbone (GalaxyBackbone)ICTWorld Bank▪ US$250 million – Youth Employment and SocialSupport Operation (YESSO)▪ US$140 million – Growth and Employment SupportProject▪ US$200 million – State Employment andExpenditure For Result ProjectJobcreation
  29. 29. Doc IDLastModifiedPrinted|The Ministry negotiated the following financing agreementstotalling ~US$12 billion to support the real sector – (5)28MOBILIZING FINANCES FOR REAL SECTOR ACTIVITIESFederal Ministry of Finance▪ Working with CBN on use of intervention fund for purchaseof new aircraft to be passed to private sector and repaidChina Exim Bank▪ US$500 million 5 new airport terminals in Abuja, Kano,Lagos, Enugu and Port-HarcourtAviationWorld Bank▪ US$300 million Housing Liquidity FacilityChina Exim Bank▪ US$500 million for the Abuja Light Rail ProjectFCTHousingChina Exim Bank▪ US$200 million for various roads (under construction)World Bank▪ US$80 million for second Niger bridgeWorks
  30. 30. Doc IDLastModifiedPrinted| 29 To address two key issues: Mainstreaming government efforts to improve the lives of girls andwomen in Nigeria into the budgeting process Linking funding release to concrete results delivery for these girlsand women, with the 2013 budgeting process as pilot. Three Technical Working Sessions and a program design workshop with thefocal points in the pilot MDAs and civil society partners have been held -develop work plans, budgets and implementation modalities at the state, localgovernment, community and ward levels. Ministry of Agriculture has since March trained 350 in fishery farming - 70from each five geo-political zones. Ministry of Communications Technology made the initiative the focus of its ICTDay in April and provided 35 students and seven teachers with laptops. The Ministry of Health for its VVF target has initiated the acquisition andupgrading of existing fistula centres in Ebonyi and Katina states as a key stepto scaling up the numbers of girls to receive the corrective surgery. Ministry of Works has signed MoUs with three private contractor firms whohave pledged to support women subcontractors in their road contracts..Support to Women EmpowermentBackgroundProgress toDateMOBILIZING FINANCES FOR REAL SECTOR ACTIVITIES
  31. 31. Doc IDLastModifiedPrinted| 30MOBILIZING FINANCES FOR REAL SECTOR ACTIVITIES▪ NEXIM being retooled to enhance support to the non-oil export sector▪ Reforming the Export Expansion Grant (EEG) Scheme to better target criticalpriority sectors and reduce cost of running scheme▪ Total disbursement of ₦7.3 billion in 2012 in support of non-oil exporters,leading to creation of 4,911 direct jobs and foreign exchange generation ofabout US$58 million annually on full implementation of the projectsSupport tothe Non-oilSectorRegionalIntegration▪ The ECOWAS Trade Support Facility has been introduced to enhance exportcredit to small traders, formalize trade and deepen payment system in theWest African sub-region. NEXIM dedicated a seed fund of ₦500 million, with₦268m approvals granted and ₦170m already disbursed.▪ Financing Regional Sealink Project to establish a dedicated regional shippingcompany which will mitigate the issue of high transportation cost andexcessive transit time in West and Central Africa. The project is expected tocost between US$60 – 100 million.FosteringPartnerships▪ Strengthening relationships with other EXIM Banks to attract investmentcapital. NEXIM has credit lines with the Export-Import Bank of India and theAfrica Export Import Bank, while discussion have reached advanced stagewith EXIM Bank of TurkeyFinancing International Trade and Regional Integration
  32. 32. Doc IDLastModifiedPrinted| 31Supportfor JobCreationMacroEconomicManagementMobilizingFinancesfor RealSectorActivitiesSupportingEnablingReforms
  33. 33. Doc IDLastModifiedPrinted| 32Port Reforms in conjunction with the Ministry of Transport,Works, Presidency and the Lagos state GovernmentI2,080 TEUovertimecontainerstransferred toIkorodu LighterTerminal.Ports operatinga 24-hourregime for thefirst-time since1970..Disbanded NCStask force thatharass cargo onthe highwayApapa-OshodiExpresswaycleared with FMWrehabilitating theroadsReduced thenumber ofagenciesoperating in theports from 14 to7.II III IV VClearing time reduced from 39 days to 7 days for trouble-free cargo, but target is 48 hours!ASUPPORTING ENABLING REFORMSWe had achieved the following …BUT !
  34. 34. Doc IDLastModifiedPrinted| 33B Support to Other Sectors: PowerSUPPORTING ENABLING REFORMSKey MeasuresChair of the board of the National Bulk Electricity Trader(NBET) and National Electricity Liability ManagementCompany (NELMCO)Signing of letters of comfort, PPAs etcNegotiated GuaranteesSolving financial problems and payingoff PHCN
  35. 35. Doc IDLastModifiedPrinted| 34C Support to Other Sectors: HousingSUPPORTING ENABLING REFORMSMortgage Refinance Company (MRC) hasbeen proposed to assist in resolvingfinancing gapHousing Finance: the challenges▪ Nigeria needs to add 23 million homesby 2020 to meet supply gap i.e. 2.6million homes per year▪ The MRC will be a Public-Private Partnership(PPP) arrangement with shareholders thatwill include: Government, International DFIs9IFC, Shelter Afrique etc), Nigerian Banks,Primary Mortgage Institutions (PMIs),Insurance Companies and Private Equityinvestors▪ Capital Structure of the MRC will comprise of:▪ Take off capital of NGN5 billion, 10% ofwhich would be invested byGovernment via Preference Shares▪ Initial debt financing of US$300 millionfrom FGN via a concessional long term,non-interest credit from the World Bank▪ Upon establishing a track record, theMRC will access the capital market toraise funds via bond issues▪ FGN credit to be disbursed to MRC inNaira; CBN to bear FX risk▪ Currently there are 20,000 mortgagesin Nigeria – Target of 200,000 mortgagesin the next 5 years▪ Challenges faced by the housingindustry are multi-sectoral:▪ Financing hurdle to be tackled withMortgage Refinance Company▪ Additional challenges also beingtacked concurrently
  36. 36. Doc IDLastModifiedPrinted| 35D Support to Other Sectors: Sports and ManufacturingSUPPORTING ENABLING REFORMSSports Examining innovativeways of financingsector throughlotteries and privatesector franchisingManufacturing Stoppage of multiple taxation Fast track the completion of CETbook Facilitate easier access to longterm financing Tackling trade malpractices
  37. 37. Doc IDLastModifiedPrinted| 36E Support to Other Sectors: AgricultureSUPPORTING ENABLING REFORMSSpecific MeasuresIntroducedFiscalincentivesto supportRice andCassavavalue chains Zero duty on machinery and equipment toprocess high-quality cassava flour Corporate tax rebate of 12% for bakeriesattaining 40% substitution of wheat forcassava Effective duty of 50% (to be raised to100% by December 2012) on importedpolished rice to encourage domesticproduction 100 percent duty on wheat flour from July1, 2012
  38. 38. Doc IDLastModifiedPrinted| 37SUPPORTING ENABLING REFORMSSupport to Other Sectors: WorksFSupporting the Construction of the Second Niger Bridgethrough PPPs.
  39. 39. Doc IDLastModifiedPrinted| 38SUPPORTING ENABLING REFORMSSpecial InitiativesMr. President announced a ₦3 billion grant program - ProjectAdvancing Creativity and Technology (ACT) Nollywood, toencourage growth and stimulate job creation in Nigeria’smovie industryThe program aims to improve and promote key componentsof the movie value chain through the provision of grantsschemes designed to support existing or aspiring practitionerswithin the industrySupport to Other Sectors: Creative IndustriesG
  40. 40. Doc IDLastModifiedPrinted| 39Supportfor JobCreationMacroEconomicManagementMobilizingFinancesfor RealSectorActivitiesSupportingStructuralReforms
  41. 41. Doc IDLastModifiedPrinted| 40Youth Enterprise with Innovation in Nigeria(YouWiN!) ProgramYouWiN! Results• Trained 12,000 aspiring or existing young entrepreneurs.• Presently funding 1,200 entrepreneurs identified in the first round of the three roundcompetition• Identified 1,200 women in May 2013 across the six geopolitical zones to receive fundingin the second round• As at May, 2013, a total of 14,025 jobs have been created across the country in the earlystages of the first round. At least 80,000 jobs expected by the end of the third round in2015.REGION NO. OF JOBSNorth-Central 2,552North-East 1,616North-West 2,159South-East 2,280South-South 2,119South-West 3,299Total 14,025SECTOR NO. OF JOBSAgriculture 4,113ICT & Media 1,893Manufacturing 3,698Retail 698Others 3,623Total 14,025Breakdown of Job Creation by Geo-Political Zone and Sector (as at May 2013)SUPPORT FOR JOB CREATION
  42. 42. Doc IDLastModifiedPrinted| 41COMMUNITY SERVICES SCHEME (CSS) &GRADUATE INTERNSHIP SCHEME (GIS)Community Services Scheme• 370,000 youth to be employed annually.• 178,000 Youth already employed.Graduate Internship Scheme• Providing 50,000 graduates with internship in establishedprivates sector organizations• 1,306 graduates placed so farSUPPORT FOR JOB CREATION
  43. 43. Doc IDLastModifiedPrinted| 42THANK YOU!!!

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