Buhari Launches Economic Recovery Plan Today

FG seals $4.5bn agricultural, rural devt plan with China NGF chair insists Paris-Club refund was not diverted Gowon visits president

Omololu Ogunmade in Abuja
President Muhammadu Buhari on Tuesday said he would today launch the Economic Recovery and Growth Plan (ERGP) 2017-2020 in his administration’s pursuit of economic revival, improved security and sustained war against corruption.

A statement by the president’s media aide, Mr. Femi Adesina, said the launch would take place in the Council Chambers of the Presidential Villa, Abuja, in conformity with Medium-Term ERGP which he said had earlier been approved by the Federal Executive Council (FEC).

The Medium-Term ERGP, the statement added, has among its broad strategic objectives, the restoration of sustainable, accelerated inclusive growth and development; investing in the people and building a globally competitive economy.

This came as the federal government also yesterday announced the $4.5 billion credit scheme with China to drive mechanised agriculture and rural development in all the 36 states of the federation and Federal Capital Territory (FCT). The scheme has 20 years of repayment plan at one per cent interest rate.

Making this disclosure to journalists after meeting the president in the Villa, the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, and the Chairman of Nigeria Governors’ Forum, Abdulaziz Yari, said the move was the aftermath of the visit to China last year during which the Asian country expressed its willingness to help Nigeria out of its poverty and underdevelopment.

They said the scheme is mid-wifed by the Ministry of Agriculture and Rural Development in collaboration with the Ministries of Finance, Budget and Planning, the Central Bank of Nigeria (CBN) and governors.
Ogbeh who said they had visited the president to brief him on update on the scheme, added that the president threw his weight behind it and instructed them to resolve any technicalities involved with the Ministries of Finance, Budget and Planning and the CBN.

“We came to brief the president on developments following our visit to China in April last year and our negotiations on a number of issues to deal with machineries for agricultural development. We signed an agreement which engages all the states including the FCT and the Federal Ministry of Agriculture and Rural Development for the procurement of strategic machinery for rural development and agriculture, tractors, bulldozers, graders, irrigation pumps and so on from China.

“The Chinese were willing to supply us these things on a long term basis – 20 years credit at an interest rate of one per cent per annum. A committee has been working on the matter and we are close to sorting out all the small details and that is why we came to see the president.

“The president responded well. He asked us to get in touch with the Ministry of Budget and Planning, Finance and CBN to sort out all the technical details and move on with it. Of all the partners we have, the Chinese have shown the willingness to see us out of our problems because about 30 years ago, they were in the same crisis. They see us as people in the same circumstances that they were then and they are willing to help us get out of it and we appreciate it. The president does,” Ogbeh stated.

Complementing Ogbeh’s submission, Yari said the Chinese Company Organisation in collaboration with the People’s Bank of China would offer Nigeria $4.5billion credit which he said would cover the cost of equipment to be purchased and infrastructural drive such as rural earth dams, irrigation with 20 years’ repayment term and five years moratorium.

He also said the move was in fulfillment of federal government’s decision to diversify the economy to agriculture.
“Initially, we started negotiations to drop a counterpart funding of 25 per cent but understanding the economy of Nigeria, we negotiated to give a counterpart funding of 10 per cent which we believe Nigeria can do and we are targeting the natural resources fund from the counterpart funding. We are now speaking with the Chinese group and the Nigerian governors and the technical committee that was set up by the the Ministry of Agriculture and Rural Development,” he said.

Yari also denied the diversion of the first tranche of London-Paris Club money by the NGF, saying the controversy over the fund arose from consultancy fee which was lodged in NGF account.
He said the matter had now become subjudice and hence, he would be unable to elaborately comment on it until it is fully resolved.

“There is no issue with the refund. The issue is with consultancy fee which I think the Minister of Finance made clear that we decided to domicile it in the NGF account for us to work together on who to be paid or who not to be paid. Some wrote petitions that they have not been paid and mind you, we have not even started paying fully because we have to ascertain who worked for who.
“As I am talking to you, we have a lot of litigations. So, someone says he worked for so and so years for this state and that state. We are taking a decision that I will not make any comment on it yet. Let me tell you the truth.”

The London-Paris Club refund has helped this economy. Those in the state know about it. We were able to pay salaries during the christmas and New Year and we were able to do so many things,” Yari added.
Also yesterday, former Head of State, Gen. Yakubu Gowon, paid a visit to Buhari in his office. He said the visit was aimed at welcoming him back to Nigeria after spending about 50 days in London on medical vacation.

He also said his visit was meant “to encourage him to continue to do his work to the best of his ability dealing with all the problems,” adding: “Day in day out, you read in the press of all sorts of things happening; God will give him continued strength and energy to be able to deal with the problems of the country for the good of Nigerians. I’m delighted to be here, to welcome him back and to see him in reasonable good health and able to do whatever he is able to do.”