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What You Need To Know About Nigeria Economic Sustainability Plan (NESP)

by on June 26, 2020
 

Recall that the Nigeria Economic Sustainability Plan (NESP) was approved by the Federal Executive Council (FEC) on June 24, 2020.

The initiative was revealed by Tolu Ogunlesi, Special Assistant on Digital and New Media to President Muhammadu Buhari.

NESP was developed by the Economic Sustainability Committee (ESC), established by President Muhammadu Buhari on March 30, 2020.

NESP is a 2.3 Trillion Naira stimulus attempt to revive the Nigerian economy in the face of the disruptions and challenges of the Covid-19 pandemic.

NESP, according to Ogunlesi, is aimed at creating jobs, halting recession, supporting small businesses and prioritizing local content.

The initiative is Chaired by Vice President Professor Yemi Osinbajo. the ESC is further comprised of several Cabinet Ministers as well as the Group Managing Director of the NNPC and the Governor of the Central Bank of Nigeria (CBN).

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Terms Of Reference, According To The Federal Government Include:

  • Development of a Plan that responds robustly and appropriately to the challenges posed by the COVID-19 pandemic
  • Identification of fiscal measures to enhance oil and non-oil government revenues and reduce non-essential spending
  • Creation of a financial stimulus package for the Nigerian economy,
  • Articulation of specific measures to support the 36 States and the FCT, and very importantly,
  • Support for MSMEs and the creation of jobs.

The NESP was developed in consultation with Cabinet Ministers, Heads of Federal Agencies, the Presidential Economic Advisory Council (PEAC), State Governors and the National Assembly.

The NESP has been developed as a 12-month, 2.3 Trillion Naira ‘Transit’ Plan between the Economic Recovery and Growth Plan (ERGP) and the successor plan to the ERGP, which is currently in development.

The NESP Will Be Funded As Follows:

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• 500 billion Naira from Special FGN Accounts

• 1.1 trillion Naira from the CBN in the form of structured lending

• 334 billion Naira from external bilateral/multilateral sources

• 302.9 billion Naira from other funding sources

Design and implementation of the NESP are driven by the following principles:

  • Local Content & Self-Reliance
  • Economic Stimulation
  • Job Preservation and Creation
  • Pro-Poor/Vulnerable focus

Highlights Of Key NESP Interventions:

  • Mass Agricultural Programme (MAP)
  • Infrastructure
  • Extensive Public Works and Road Construction Programme
  • Mass Housing Programme (MHP)
  • Installation of Solar Home Home System(SHS)
  • Investment in Healthcare Infrastructure.
  • Informal Sector Support
  • Business Support for MSMEs
  • Technology
  • Expansion of National Social Investment Program (NSIP)
  • Cut Non-essential Spending
  • Support for State Governments
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