There is need to strengthen NEMA as a structure and sustainable adaptation measures for the citizens. In mobilizing resources to tem the tide of flooding, there is need to look beyond NEMA.
NEC Secretariat to come up with recommedations on the roadmap towards addressing the flood situtation.
PRESENTATION ON EXPLORING A NEC AGENDA FOR MACROECONOMICS STABILITY & SHARED PROSPERITY BY DG NESG
The Presentation was to inform the council on achieving low Inflation and stimulation Growth and Macroeconomic Objectives.
MACROECONOMIC STABILITY OBJECTIVES:
High and stable economy
Low Inflation Growth Price level
unemployment Account
Favourable Current low balance and stable exchange rate account balance
CURRENT MACROECONOMIC LANDSCAPE
Investment inflows have dwindled since 2019, likewise the country’s investment/GDP ratio; Crude Oil exports and refined petroleum products imports dominate Nigeria’s trade structure.
Nigeria’s Naira position against major trading currencies deteriorated
Weak FX supply and heightened demand for imports remains core drivers of exchange rate instability; market volatility persists despite recent FX alignment, driven by pressure on FX demand that widens the gap between official and parallel market rates due to inadequate supply and speculative tendencies; external reserves remain under pressure as external reserves fell by 8.3 percent from 37.1 billion in January 2023 to 33.9 billion in July 2023.
KEY CONSIDERATION FOR IMPROVING THE OUTCOMES OF FUEL SUBSIDY REMOVAL
Inflationary impact: Fuel subsidy removal will increase inflation. So, there is a need for robust social programmes.
Efficiency in government spending: There has been a lack of clarity on how the government spends subsidy savings. This issue must be addressed.
Investment in the downstream and midstream segments of the industry: Achieving this will reduce huge dependence on petrol imports and strike out the need to pay subsidies on fuel.
RECOMMENDATIONS:
The NEC must insist on pushing a national legislative reform agenda for national competitiveness. It is essential that nigeria resolves the legislative binding constraints to our national competitiveness, the nesg through nassber, our partnership with national assembly and nigerian bar association has identified over 115 legislations that hinder growth, in the last few years, 10 legislations have been passed (including the cama 2020 and the pia 2021.
COUNCIL RESOLUTIONS:
Council commended NESG for its presentation especially on pragmatic roadmaps for tackling current economic challenges.
It was noted that the recommendations contained in the NESG’s roadmap needs to be reviewed to align with existing economic agenda at the national and sub-national levels for pragmatic purposes.
Olusola Abiola
Director Information
Office of the Vice President
17th August 2023