Mophasa:
MINISTRY OF BUDGET AND NATIONAL PLANNING

Press Statement

Friday March 23, 2018
ERGP PRIORITISES HUMAN CAPITAL DEVELOPMENT

Several of today’s newspapers carried a story in which the philanthropist, Mr. Bill Gates is said to have taken issue with the Federal Government’s Economic Recovery and Growth Plan (ERGP). It seems the context in which Mr. Gatesmade his remarks was not well understood.

A close reading of his statement shows that the point Mr. Gates was making was that the human capital development should have been explicitly indicated as part of the execution priorities of the ERGP. This is not the same as saying that the ERGP does not address human capital development or that Mr. Gates faulted Nigeria’s economic plans as some newspapers put it.

This development however provides an opportunity to clarify several things about the ERGP.

1. ERGP prioritises human capital development:
The ERGP rests on the three pillars of restoring growth, investing in the Nigerian people and building a competitive economy. The pillar of ‘investing in the Nigerian people’ is nothing other than human capital development consisting as it does of education, health and social investments, and a whole chapter of the ERGP is devoted to this important pillar. Therefore the ERGP indeed prioritises human capital development.

The ERGP sets out 60 strategies cutting across all sectors of the economy. Indeed, over one quarter of them (strategies 31 to 47) fall into the category of Investing in the Nigerian people. The execution priorities of the ERGP are restoring macroeconomic balance, achieving agriculture and food security, ensuring energy sufficiency in power and petroleum products, improving transportation infrastructure and driving industrialization through SMEs. These interventions were chosen because of their potential for fast-tracking economic recovery and expected contribution of the private sector to accelerating growth, which is one of the key principles of the ERGP. In other words, the execution priorities are catalysts for implementing all the strategies in the ERGP.
These priority areas have cross-cutting potentials which are all focused towards empowering the people through creating jobs and improving their general conditions. In other words, all the areas indicated are underpinned by the emphasis on investing in the people. Every single one of the execution priorities has the people at the centre.

2. Human capital development spending has gone up:
To demonstrate the commitment of government to improving human capital development at the national level, the Federal Government has made significant increases in capital allocations in human capital related sectors in the last three years in spite of dwindling revenues.

For instance, capital allocations to education, including Universal Basic Education (UBEC), in the 2015 Budget was N91.903 billion, but the allocation was increased to N112.543 billion in 2016; N152 billion in 2017 and N170.79 billion is proposed for 2018 budget.
In the health sector, while N22.676 billion was provided in the 2015 budget for Capital expenditure, N28.65 billion was provided in the 2016 budget; N55.61 billion in 2017; and N71.11 billion in the 2018 budget proposal.

3. Focus on social intervention programmes
In addition, the current administration has launched a wide-ranging Social Investment Programme which caters for human development for which a total budgetary allocation of N500 billion has been provided in the 2016 and 2017 budgets as well as the 2018 budget proposals. Apart from providing the much needed jobs, the N-Power Scheme deploys young graduates to serve as teaching assistants, public health officials and agricultural extension workers. Similarly the Home Grown School Feeding Programme provides a meal a day to children in public primary schools. All these interventions contribute to human capital development.

4. Collaboration with States to deepen human capital development:
The Federal Government is committed to improving human capital development at all levels by deepening collaboration with the States. That is why this special session of the National Economic Council on human capital development was convened.
It was aimed at:
· increasing attention of government at all levels on human capital development in line with the ERGP
· enhancing the quality of expenditure so as to achieve the improved outcomes set out in the ERGP.

Signed
Akpandem James
Special Adviser (Media) to the Hon. Minister

Source;

http://diaryofmypresident.com/index.php/2018/03/23/federal-ministry-of-budget-and-planning-press-release/

Shithole response

Has the value of the only commodity Nigeria depend on ( crude oil) gone down by half or not?

just like every soccer teams have defence so do our fg have her own defence. but in d case of our fg, its porous

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Outlet.

nextstep:
Forget all these fancy numbers and acronyms; they only need to focus on one thing: constant and sufficient power. Most other things will sort themselves out. And for those swindled by the increased budget allocation, the actual dollar amount hasn't changed. Naira value has nearly halved since 2015, yet the things are going to be paid for in dollars, so we're basically at a standstill in terms of "REAL MONEY", if not going back.

I disagree that once power is constant and plentiful, things will sort themselves out.

The biggest drawback facing the Nigerian economy is the extremely high cost of credit. The real sector of the economy such as factories and real estate will continue to underperform. Lending rates of double digits has limited the economy for decades. I am sure if cost of credit was between 5-9% over the past 30years, it would have easily added an extra 2% to the economic growth yearly.

An extra 2% would have a transformative change to the country putting the country firmly the middle income status. Per capita income would be between $5,000 - $7,000 rather than the poor $2,000 the nation has today

senseless. the guy knows what he has seen and knows the truth. the budget is not same thing as effective money release and spent on purpose. be serious instead of wasting your time to answer.

iphenon:
Bunch of jokers and liers. See the yearly increase in health and education budget with very little to show forth as result

Please how much do I need to have to start considering travelling to Canada?

Have a balance of like 3m and pass ielts, then you are set

Is Bill Gates also a Nigerian? = NO!

Is Bill Gates a member of PDP = NO!

Is any member of PDP rich enough to bribe Bill Gates = NO!

BUHARI IS A TOTAL DISASTER TO NIGERIA

4kDdullard:
Trash as usual as if they know better than Bill Gates.

Of course, they know better of the Nigerian economy than Mr. Bill Gates.

Nwaohafia1:
I don't like this moniker above me.


So APC thinks they know more than Bill Gate? A man who controls the world's economy.

How does Bill Gates control the world's economy?

You don't seem to have anything to say.

How can you set out 60 strategies? Idiots

Nigerian ministry and big gramnar are lije 5/6.

LesbianBoy:
Bill Chukwuma Gates

dy have igbolize d poor man
mtcheeewe

The government reply is simply an essay writing. If you did government at the secondary school level you will easily found more answers there especially at the theory section.

OBAGADAFFI:
They should have replied Bill directly at the meeting.

No need spinning these in the media.

You dey mind yeye people. Bill Gates for explain am wella for them. Bunch of fraudulent swines.

Replies like this are what is resulting to Nigeria ‘s greatest exodus.

Why can’t they take correction about their failure?

BiafranBushBoy:
idiots

I just pity all these broke N-power graduates that they use to score cheap political points whenever they wana list out an achievement.

We keep telling our stories ooo... Abeg follow read

Sad end of a street hustler in Nigeria

I thought they are treating N-Power people well now?

CoolAmbience:


How does Bill Gates control the world's economy?

You don't seem to have anything to say.

Bill Gate is the second richest man in the world.

Please take some time to think about that.

As stupid as they are, they went as far as replying him

OBAGADAFFI:
They should have replied Bill directly at the meeting.

No need spinning these in the media.

The thing just tire me, ah first it was elrufai, now the FG. I wonder what they are afraid of?

Gate talked about deliverables &nt one mundane document. d results in d field are in d negative. nt all can b decieved

Nwaohafia1:
I don't like this moniker above me.


So APC thinks they know more than Bill Gate? A man who controls the world's economy.

sorry sir, are u asking me?

grandstar:


I disagree that once power is constant and plentiful, things will sort themselves out.

The biggest drawback facing the Nigerian economy is the extremely high cost of credit. The real sector of the economy such as factories and real estate will continue to underperform. Lending rates of double digits has limited the economy for decades. I am sure if cost of credit was between 5-9% over the past 30years, it would have easily added an extra 2% to the economic growth yearly.

An extra 2% would have a transformative change to the country putting the country firmly the middle income status. Per capita income would be between $5,000 - $7,000 rather than the poor $2,000 the nation has today

Thank you for your insightful reply. You are absolutely right that the high cost of credit is holding the nation back, and I think government has a role to play in underwriting/guaranteeing lower interest rates for certain sectors of the economy, particularly heavy- (and light-) industry. I too have struggled with trying to work within a system where the credit rate is on average more than 20%.

That said, the two underlying factors that determine credit rates are inflation, and ease of doing business.

First, the fiscal environment changes from month-to-month (based more on government whims than actual economic theory) that it's hard for a bank to give out loans at (for instance) 9% this year, just to see the real value of their money erode within 1 or two years, during the term of the loan. Not only does the Naira change value wildly (compared to the currencies we exchange to buy industrial and consumer products with), but domestic inflation varies from 14-19% (NBS statistics). At the very least, loan interest rates have to beat inflation and the swinging Naira - hence the double-digit rates we've been experiencing. No bank is going to offer anything below 20% because they are guaranteed to lose; even if they were favourably disposed to losing money, they'd be out of business fast. Note: when inflation was high in the US and UK in the 70's and 80's, interests rates also approached usury; there's nothing a bank can do about that (and frankly it's not their role to regulate inflation)

Second, there's quite a lot of friction and uncertainty in the market: one month you can buy petrol under #100, another it's #150 - that is if you can find it. One day you can import plastic parts for #30,000 per kg, next month you need #45,000 for the same - that is if the gov't doesn't ban what you were importing or restrict your access to foreign exchange - often without warning and contracts have been signed. There's no guarantee that you'll have enough energy to produce - or fuel to transport - your products, that is if the roads are good to where you are. All these sources of friction have to be taken into account, and they result in higher costs/interest rates for everybody in the value chain.

There are many people who started making things in Nigeria, but because of the power situation (erratic supply, gen, erratic fuel, etc), found it hard to compete with manufacturers where power is plentiful and cheap, just on cost alone. It made more sense to import; and because we import so much (and export practically only oil), our economy is unable to withstand any shock, adding to the friction above. The effects are also felt in storing perishable goods, education, hospitals, general well-being. We are forced to waste so much time and energy procuring power - buying a gen, maintaining it, scouring and queuing for petrol, causing downtimes for all kinds of businesses, which leads to the inflation being high. Manufacturers/sellers/transporters all have to add this friction into their own margins, so guess what - prices get higher. And this is a vicious cycle: if petrol/energy costs more this year, then I need to charge more for what I'm making, whether it's food, medicine, or even my fee for engineering consulting. Even brooms will cost more because the seller needs to pay for more-expensive food and medicines.

In summary, if power is regular, relatively cheap, and plentiful, the cost of business will come down, a lot of the frictions and uncertainties will reduce, and as a result year-on-year inflation will also decrease. Banks will try to outdo each other in reducing rates in order to sell loan products (just as the telecoms outdid themselves to lower prices in the past decade). Government can do a lot to hasten the drop in rates/inflation, but by just making power plentiful, they would give the economy a huge boost.

Fongido:
They are yet to understand Bill Gates grammar.
Dullard Buhari can't accept a simple truth

c d way buhari is following bill gates up and down 2 pose& snap pishure

4kDdullard:
Trash as usual as if they know better than Bill Gates.

DONT MIND DEM

bill gates wants to enslave you and you are welcoming him
very stoopid

4kDdullard:
Trash as usual as if they know better than Bill Gates.

Talking of credit and lending rates, hope you understand that almost 40% of the borrowed money (in some instances) go wasted on power supply to run the factory

grandstar:


I disagree that once power is constant and plentiful, things will sort themselves out.

The biggest drawback facing the Nigerian economy is the extremely high cost of credit. The real sector of the economy such as factories and real estate will continue to underperform. Lending rates of double digits has limited the economy for decades. I am sure if cost of credit was between 5-9% over the past 30years, it would have easily added an extra 2% to the economic growth yearly.

An extra 2% would have a transformative change to the country putting the country firmly the middle income status. Per capita income would be between $5,000 - $7,000 rather than the poor $2,000 the nation has today

Better to have been silent and see what is there to be learnt from his comments.

OBAGADAFFI:
They should have replied Bill directly at the meeting.

No need spinning these in the media.

They obviously didn't think about it. Na where person get interest everyone go see. The purpose of the ERGP abi Wetin dem call am was never clear to anyone because it was just another government abbreviation. Bill Gates read am come dey wonder Wetin this thing mean. So he tell them Wetin e think say e mean but he no see any reference to human beings inside. Na so Osinbajo come say, na true oh. Ewoo, dem don catch our lie. No, na Lai talk am. Dem come go prepare plenty grammar to explain the ERGP. Even for the explanation, dem still argue say capital expenditure for health increase. The exact problem Bill Gates complain about. Awon olodo.

for some of us that did read economics in sch, education is said to be the bedrock of every society. 2. the state of health wise of the people of a nation determines their productive capacity. WHAT ABOKI IS SEEING WITH THE ALMAJIRI KIND OF EDUCATION, CAN NEVER UNDSTAND BILLS NOTE

Intervention programmes should be in such a way the ones that create lastIng impact not a one-off programme,when people's mental capacities are economically,educationally and socially empowered it brings about lifetime changing effect.This is real human capital.