Following Wednesday’s approval of N2.3 trillion Nigeria Economic Sustainability Plan by Federal Executive Council, Federal Government has stopped what it called non-critical and administrative capital spending, including purchase of vehicles.
Special Adviser to the President on Media and Publicity, Mr Femi Adesina, disclosed this in a document tagged ‘What you need to know about the Nigeria Economic Sustainability Plan’ made available to journalists in Abuja on Thursday.
The plan was developed by Economic Sustainability Committee chaired by Vice-President Yemi Osinbajo and established by President Muhammadu Buhari on March 30, 2020.
It was designed to support the nation’s economy in the face of the disruptions and challenges of the Covid-19 pandemic.
Adesina listed some of the key interventions as stated in the plan as mass agricultural programme, infrastructure, informal sector support, business support for MSMEs, technology, expansion of National Social Investment Programmes, cut non-essential spending and support for state governments.
As part of ways to cut non-essential spending, Adesina said only ambulances, fire-fighting vehicles and other essentials are exempted from the ban on purchase of vehicles.
He said, “The President has approved implementation of the report on rationalisation of government agencies. NESP will also target a reduction in average production costs of crude oil.
“Also, Integrated Personnel and Payment Information System will be expanded to cover all Federal Government’s MDAs. Non-critical and administrative capital spending will be eliminated, including purchase of vehicles (except for ambulances, fire-fighting vehicles and other essentials).”
Under the plan, Adesina added that a minimum of 1,000 young Nigerians would be recruited per local government into what would be the largest public works programme in the history of Nigeria, amounting to 774,000 direct jobs.
Explaining that there will also be an extensive focus on the construction and repair of major and rural roads, using locally available materials like limestone, cement and granite, Adesina pointed out that the plan would deliver up to 300,000 homes every year.
Adesina said NESP, which had been developed as a 12-month N2.3trillion transit plan between Economic Recovery and Growth Plan and successor plan to ERGP currently in development would be funded through N500 billion from Special FGN Accounts; N1.1 trillion from CBN in the form of structured lending; N334 billion from external bilateral/multilateral sources; and N302.9 billion from other funding sources.