So much happened in Nigeria in 2014 and the FG had to churn out one policy after another to promote local investments, curb inflation, reduce excess liquidity in the system, rejuvenate local production of food, track money laundering and guarantee a better life for the citizens among other potential benefits.

Below are our choices for top 10 policies of government in 2014 in no particular order.

The Federal Government introduced a tariff of 70% on used cars and buses effective July 1, 2014. Side by side with that, the government approved import duty waivers on imported Completely Knocked Down (CKD) components while Semi-Knocked Down (SKD) components will attract only 10% duty without any levy.

The policy was geared at stimulating local manufacturing and assembly of cars, attract investment in the sector, encourage technologically advanced manufacturing activities so affordable cars could be produced her and generation of employment.

At the moment, the Stallion Group has started the assembly of Nissan and Hyundai vehicles from their assembly plants while Peugeot Automobile Nigeria Plc also recently rolled off the first set of ‘made-in-Nigeria’ vehicles.

The policy has its critics as well like those who argue that such a policy being initiated in the midst of an undeveloped steel industry and comatose power was not well thought out. Another criticism is the absence of automotive components supply base and other cluster industries.

This new policy was an about-turn by the federal government. In January 2013, the FG announced a rice policy where imported rice attracted a 100 percent levy in addition to 10 percent customs duty. That policy was counterproductive because instead of encouraging local production and discouraging importation, it led to increased smuggling of the product.

With the new policy which took effect from May 26, 2014, the Federal Government approved the reduction of levy on husked brawn and semi-milled or wholly milled rice to 20% for investors with rice-milling capacity. For those who are pure traders and not investors, the government reduced the levy to 60%. The policy, effective May 26, 2014 was geared at encouraging investment in the rice value chain through backward integration.

Following the policy announcement, Africa’s richest man promised to invest $1b in commercial rice farming while Olam Nigeria has also started work on a 420 hectare rice farm and mill in Rukubi, Nassarawa State. Currently, there are reportedly 4,350 small rice mills in Nigeria while the big ones are about 13.

Though announced in October 2013, the policy took off on Jan 1,2014 and was meant to stimulate the country’s self-sufficiency in fish production through a 25% annual fish import cut. Implication is that only 500,000 tons of fish will be allowed to be imported from an annual baseline fish import figure of 700,000 tons originally set for 2014. Fish species farmed in the country such as catfish, tilapia and croaker are now strictly regulated and under prohibition from being imported without control while other fish species are free for entry within the set quota.

The policy was strongly opposed by the Association of Fish Suppliers of Nigeria and even some countries where Nigeria imports from. There were reports at a time of the World Trade Organisation threatening to impose sanctions on Nigeria for “anti-trade” policies. However, the minister of agriculture allayed fears and made clarifications of the policy.

This policy has led to increased local production and reduction in price of fish in the market. According to a report by National Mirror on Dec 22, 2014, Herring prices have come down from N7,600 to N4,000 per carton. In the case of Horse Mackerel, the price came down to N5,800 from more than N9,500 per carton. The Titus species is being sold in the market for N6,800, down from a level of N10,200 per carton.

On July 1, the last phase of the cashless policy was rolled out across the remaining 30 states of Nigeria. Before then Phase 1 had taken off in Lagos on Jan 1, 2012 while Phase 2 which included Abia, Anambra, Kano, Ogun and Rivers States commenced on October 1, 2013. Under this policy, customer’s daily withdrawal or deposits was pegged to a maximum of N150, 000 per individual customer and N1million for corporate clients (now N500,000 for individual and N3, 000, 000 for corporate).With the new policy came the suspension of the 3% surcharge for daily cumulative or single cash withdrawals in excess of N500,000. The policy has led to an increase in the use of alternate channels such as Point of Sale Terminals, ATMs and other electronic means.

On Feb 28, the Federal Government issued a circular that imported books would now attract a 65% duty which was later reduced to 50%. The decision was reportedly taken in a bid to protect the nation’s printing industry as publishers would now have to print locally. The policy is in contravention of a 1954 UNESCO treaty on zero tariff on books across member states. Whereas book printers in Nigeria hailed government for the policy, publishers kicked against it.

The policy kickstarted without any notice in March when publishers went to the ports to clear their books and were told to pay the new tariffs. The policy was later put temporarily on hold till 30th September, 2014 to enable those who have placed order for books from abroad before the imposition of the tariff to clear their books.

It is more expensive to print book abroad than in Nigeria presently. It is believed that the FG might grant a one-year waiver on the tariffs to give publishers some time to prepare for the takeoff and printers some time to increase their capacity.

Signed into law July 1, 2014, it effectively repealed the 2004 Pension act.

The new Act includes significant reviews such as the exemption of military personnel and Department of State Security personnel from the current contributory pension scheme.

It also introduces two significant reforms that could potentially swell the pension pot and registrations. The first of which is the upward review of the minimum rate of pension contribution from 15 percent (with employee and employer contributing 7.5 percent apiece) to a minimum of 18 percent (with contributions from employee and employer increasing to 8 percent and 10 percent respectively).

The second aims to expand the pension base as it brings organisations with as few as three employees into the contributory pension scheme. The 2004 Act compels only organisations with five or more employees to participate in the pension scheme but this has been reduced to three in the 2014 Act.

The Monetary Policy Committee of the CBN took a decision to devalue the Naira from N155 to N168 against the dollar. The fall in the price of crude oil and our declining reserves necessitated this move. The CBN hopes to tighten the monetary poli­cy framework by allowing some flexibility in the exchange rate, as well as stem specu­lative activities and depletion of foreign reserves which, as at October, had fallen to N37.1 trillion. As at December 29th, 1 US Dollar was exchanging far above the official rate at N185.05.

Earlier in the year, the cash reserve ratio on public sector deposits in banks was increased from 50% to 75%. The ratio had been increased from 12% to 50% only last year. The CRR, which is the required cash banks are expected to keep with the apex bank, had an immediate impact on the banks as the amount available for daily transactions reduced. The CRR on private sector deposits has now been increased to 20% from 15%.

In September, the CBN Governor, Godwin Emefiele, announced a re-introduction of ATM charges. According to the CBN, the N65 charge per transaction ”shall apply as from the fourth remote on us withdrawal (in a month) by a card holder, thereby making the first three remote on us transactions free for card holder but to be paid by the issuing bank”. The CBN said the fee was re-introduced to cover remuneration of switches, ATM monitoring and fit notes processing by banks.

Both were launched on the same day in February.

The president said that the NIRP is “the most ambitious industrialisation programme ever pursued by our nation” and will “accelerate growth in those industries where Nigeria has comparative advantages such as food and agric products, metals and solid minerals processing, oil and gas related industries, constructioon, light manufacturing and services.” The NIRP targets N5 trillion revenue for Nigerian manufacturers annually. An 8-man committee with the richest man in Africa as alternate co-chair was set up by the President on NIRP.

NEDEP, on the other hand was initiated to tap into the potentials of micro, small and medium enterprises as “the bedrock for industrialisation and inclusive economic growth.” Pres. Jonathan said that under NEDEP, “enterprise zones will be created in every state of the federation equipped with essential infrastructure for small businesses to thrive and transform Nigeria through employment generation, economic linkages and rural industrialisation.” The impact of these two initiatives so far are still unclear.

berem:
I am using this opportunity to wish all fans and supporters of General Muhammadu Buhari a happy New Year. God bless you all.

Sai Buhari 2015!!

ceo4eva:

Dear, what of GEJ supporters? Don't they deserve a happy new year wish as well? Are you not being selective? A Prosperous New Year To You!

ceo4eva:

Dear, what of GEJ supporters? Don't they deserve a happy new year wish as well? Are you not being selective? A Prosperous New Year To You!

major466:
The Auto Policy is one policy that can spring board Nigeria's technological advancement and make Nigeria the center of auto manufacturing in Africa. To me, this is one of the biggest achievement of GEJ in 2014.

major466:
The Auto Policy is one policy that can spring board Nigeria's technological advancement and make Nigeria the center of auto manufacturing in Africa. To me, this is one of the biggest achievement of GEJ in 2014.

ceo4eva:

You're right. Recently, Pan Nigeria revived its moribund assembly plant in the country with the inauguration of Peugeot 301 production line in its Kaduna factory. Imagine the number of Nigerian unemployed youths that this company will engage in the course of its production. Moribund automobile industries in the country are rapidly being revived since this new policy took effect.

brownlord:


Berem has got a partitioned brain, she needs urgent deliverance from the jjweed spirit.

Even boko haram will wish their enemies good this period before slicing their throat.

brownlord:


Berem has got a partitioned brain, she needs urgent deliverance from the jjweed spirit.

Even boko haram will wish their enemies good this period before slicing their throat.

deeptechcool:
policy...i dont believe there was any

kennygee:
All the campaigners in the house.

I hope Y'all are getting paid.

JECBOSS:

Don't mind B.er-em. APC followers are known for politics of bitterness, acrimony and hatred. What does it take to wish everyone a happy new year? APC remains a Party of Aggrieved Individuals.

omenka:
Wow!!