The President Muhammadu Buhari administration has announced its post-COVID-19 plans for Nigeria’s economy.
The federal government assured that it would improve the healthcare infrastructure and economy, while creating more jobs for millions of Nigerians in different sectors, supporting small businesses, local production and manufacturing, as well as extending the social safety net for the most vulnerable in society.
Vice President Yemi Osinbajo, stated this during his participation as a guest panelist in the Emmanuel Chapel’s “Economic Sustainability Beyond COVID-19” webinar.
Buhari last week Thursday at the Council Chambers received the Osinbajo-led Economic Sustainability Committee (ESC) Plan entitled “Bouncing Back: The Nigerian Economic Sustainability Plan.”
On the Buhari administration’s efforts to cushion the effects of the pandemic on Nigerians, the Vice President stated that improving healthcare infrastructure remains a major objective of the administration.
He said, “Out of the N500bn initial stimulus fund that is factored into the current budget, N126bn of it is going into healthcare.
“We’ve all noted how states have risen up to the challenge of the COVID-19 pandemic and how resuscitated healthcare facilities, new isolation centres, new ICUs are coming up. The number of testing centres has also increased. We are hopeful that we’ll be able to sustain that momentum.”
Osinbajo noted that one of the ways the administration is supporting small businesses is by reducing Company Income Tax.
“In our case, our Tax-to-GDP has been extremely low, VAT in particular. Nigeria’s 7.5% VAT rate is probably the lowest when compared with some other African countries. For example, Kenya has about 16%, South Africa is about 15%, Algeria has 19%. Besides, at the moment, domestic revenue mobilization is an issue.
“A major source of revenue for government is tax. But you must also take account of the fact that we’ve also reduced Company Income Taxes generally, especially for small businesses, which are the engines of growth for the country. So, there is a conscious effort to ensure that we don’t tax businesses out of business.”
In terms of the power sector, the VP stated that one of the proposals of the Economic Sustainability Plan was the adoption of renewable energy, especially solar, and working with the private sector to install mini-grids and solar home systems across the country.
He said, “We’ve done quite a bit of that already. We have in places like Sabon Gari, Ariaria markets: a private sector deployed solar systems that are paid for by stall owners in those markets. We’ve done microgrid in Sokoto state. Interestingly, this is entirely private sector driven and the consumers are prepared to pay for service. You find that they pay even higher than the tariffs people pay for grid power.
“A private sector-driven solar power system, such as the one we are planning as part of the Economic Sustainability plan, is one that we think would work and stands a good chance of providing power to about 25 million (individual) Nigerian homes, places and homes where there has been no power previously.”
Revealing plans to tackle unemployment, the VP stated that one of the proposals by the Economic Sustainability Committee is to build 300,000 homes across the country within 12-months’ time frame, which he noted would provide more jobs for Nigerians.
Osinbajo added that small and medium-scale local businesses and young professionals within the construction industry would benefit immensely from the policy.
“This is also an opportunity for us to develop the local industry, especially the construction industry. That is exactly the plan in developing the housing programme, because we thought it would generate the jobs that are required now, aside from the fact that we have a housing deficit.”