Following the unveiling, on Tuesday, the much expected Economic Recovery and Growth Plan (ERGP) 2017-2020, Lukman Otunuga, research analyst at FXTM has admonished the Government on critical measures to take in order to actualize projected 7% economic growth during the four-year period.
The Federal Government expects the economy to climb out of recession and grow 2.19 percent this year, according to the Ministry of Budget and National Planning.
In a statement made available to the media by Akpandem James, the Media Adviser to the Minister of Budget and National Planning, Senator Udoma Udo Udoma, the ERGP focuses on achieving macroeconomic stability and economic diversification by undertaking fiscal stimulus, ensuring monetary stability and improving the external balance of trade.
The ERGP, which aims to increase oil production to 2.5 million barrels per day and for Nigeria to become a net exporter of refined petroleum products by 2020.
The goal of the ERGP is also to increase export earnings and government revenues by an additional N800 billion a year.
Under the plan, the government also expects to earn N35 billion from the sale of some national assets, including oil joint ventures, and reducing stakes in other oil and non-oil assets.
The government said it would review and possibly remove a ban on accessing foreign exchange for 41 goods and services.
Nigeria hopes to improve tax collection to raise N350 billion per annum, in part, by boosting a luxury goods tax to 15 per cent in 2018 from its current rate of 5 per cent.
The goal is to increase the overall tax to GDP ratio to 15 percent from 6 percent between 2017 and 2020.
In the agriculture sector, the Federal Government wants self-sufficiency in rice by 2018 and in wheat by 2019 or 2020, and hopes to be a net exporter of rice, cashew nuts, groundnuts, cassava and vegetable oil by 2020, according to the plan.
Commenting on the economic recovery plan, Otunuga said, “A feeling of positivity was felt across the Nigerian economy this week, following the highly optimistic economic growth recovery plan for 2017-2020 that painted an encouraging outlook for the nation.
“The four-year plan was anchored around achieving healthy economic growth and sustainable development, boosting sentiment towards Nigeria which is currently in the process of a critical structural transformation. With a strong focus on the nation augmenting both public and private sector efficiency, whilst also increasing overall productivity, a growth forecast of 7% by 2020 could be a possibility”.
He said that moving forward, Nigeria needs to achieve a stable macroeconomic environment, reinvest in agriculture and reinforce infrastructure to promote sustainable economic growth.
“This recovery plan may be received positively by the international investment community and as such, could translate to an increased FDI in the medium to longer term”, Otunuga added.