Find a press statement below...
The Coordinating Minister for the Economy, Dr Ngozi Okonjo-Iweala has
provided a detailed 102-page documented response to the 50 questions posed by
the House of Representatives Committee on Finance. The document provides, in
extensive detail, including tables and graphs, answers to the committee’s well
publicized questions.
In her response, the
Minister stressed that, in spite of many challenges which government has
acknowledged, the Nigerian economy is showing real and measurable progress in
many areas. This can be seen in the fact that more jobs are being created;
roads, rail and other infrastructure are being improved; the country is saving
for the future and planning better for the present. Continue...
The Jonathan administration, contrary to the impression given by some
critics, is making impact in the areas that, according to credible opinion
polls, Nigerians are most passionate about.
For instance, on job creation which is a central focus of the administration,
a total of 1.6 million jobs were created last year, according to the National
Bureau of Statistics (NBS) of which 250,000 were seasonal jobs created in dry
season farming in 10 northern states. In manufacturing, the Onne Oil and Gas
Free zone created an estimated 30,000 direct and indirect jobs. The government
special intervention programme YouWin supported young entrepreneurs, creating
over 18,000 jobs. The SURE-P Community Services prgramme has also created
120,000 job opportunities.
The improvement in federal highways has been confirmed by many Nigerians
who travelled over the Christmas and New Year holidays. Key highways which have
witnessed significant progress include Kano-Maiduguri road, the Abuja-Lokoja
road, the Apapa-Oshodi road, the Onitsha-Enugu-Port-Harcourt road and the
Benin-Ore-Shagamu road. Preliminary work has commenced on Lagos-Ibadan road and
the Second Niger Bridge.
The Railway Modernization Programme involving the construction of
standard gauge lines is underway. The 1,124 km Western line linking Lagos and
Kano is now functional while work on the Eastern line linking Port Harcourt to
Maiduguri is about 36% complete. The Abuja-Kaduna Standard Gauge line has
attained 68% completion, and the Itakpe-Ajaokuta-Warri Line which is presently
77% completed, will be completed next year. The annual passenger traffic on our
railways has increased steadily: rising from 1 million in 2011 to 5 million in
2013.
One of the issues the Coordinating Minister dealt with is the charge,
made by the Chair of the Committee in the media that the country is racking up
debts under Dr Okonjo-Iweala’s watch as Finance Minister. As shown in her
response, there is no substance to the charge. In fact, the opposite is true.
Right from her Senate confirmation hearing in 2011, the Minister had identified
rising debt as a major challenge which the country needs to confront. Under the
leadership of President Jonathan and working with the Debt Management Office
and the Budget Office of the Fedration, the Minister followed through with a
robust approach which includes progressive reduction of borrowing, quick
settlement of due debts and the retirement of N75 billion of maturing bonds via
a Sinking Fund dedicated to paying off substantial bonds. These measures have
produced clear results as shown in the reduction of borrowing from N852 billion
in 2011 to N571.9 billion this year.
It is important to note that many of the 50 Questions had been
adequately answered at various fora, including meetings and open hearings organized
by the House Committee. The Minister’s detailed response in spite of this, is a
reflection of her well known high regard for the National Assembly as an
institution.
Please see below some highlights of the Coordinating Minister’s answers
to the 50 questions.
Paul C Nwabuikwu
Special Adviser to the Coordinating Minister for the Economy and
Minister of Finance
HIGHLIGHTS OF SOME ANSWERS TO THE
50 QUESTIONS
JOB CREATION
A total of 1.6 million jobs were created last year, according to the
National Bureau of Statistics (NBS). In agriculture for instance, the provision
of inputs in 10 Northern states enabled dry season farming and created over
250,000 seasonal jobs. season. In manufacturing, the Onne Oil and Gas Free zone
created an estimated 30,000 direct and indirect jobs. The government special
intervention programme YouWin supported young entrepreneurs, creating over
18,000 jobs. The Sure-community Services has also created 120,000 job
opportunities.
INFRASTRUCTURE
Progress has been made on construction of the Kano-Maiduguri road, the
Abuja-Lokoja road, the Apapa-Oshodi road, the Onitsha-Enugu-Port-Harcourt road
and the Benin-Ore-Shagamu road, among others. Preliminary work has also
commenced on the Lagos-Ibadan road, as well as on the Second Niger Bridge. The
Railway Modernization Programme involving the construction of standard gauge
lines is underway. The 1,124 km Western line linking Lagos and Kano is now
functional while work on the Eastern line linking Port Harcourt to Maiduguri is
about 36% complete. The Abuja-Kaduna Standard Gauge line has attained 68%
completion, and the Itakpe-Ajaokuta-Warri Line which is presently 77%
completed, will be completed next year. The annual passenger traffic on our
railways has increased steadily: rising from 1 million in 2011 to 5 million in
2013.
INLAND WATERWAYS
We have dredged about 72 km of the lower River Niger from Baro in Niger
State to Warri in Delta State; and completed the construction of the Onitsha
inland port; while the Baro port is nearing completion. The result of all these
is that we now have year round navigation around the lower Niger; and we are
already witnessing an increase in cargo volume from below 2.9 million metric
tons in 2011 to over 5 million metric tons on the inland waterways. As in the
case of the rail transport, the number of passengers travelling via our inland
waterways has increased fourfold from 250,000 in 2011 to over 1.3 million.
WATER RESOURCES
Key milestones recorded in 2013 include theconstruction of 9 dams,which resulted in an increase in the volume of the nation’s water
reservoir by 422MCM. Progress was made on major projects such as the South Chad Irrigation
Project, the Bakolori Irrigation Project, and the Galma Dam. Implementation of
irrigation and drainage programme resulted in increase of the total irrigable area by over 31,000Ha, job
creation for about 75,000 farming families and increased production of over
400,000Mt of assorted irrigated food products.
AVIATION:
The 22 airports across Nigeria are being remodeled and upgraded: in
2013, we completed the upgrade of 11 airport terminals and work on the
remaining 11 terminals is in progress. The Enugu Airport is now operational as
an international airport with a new terminal under construction. We have also
commenced work on the construction of three new international airport
terminals: in Lagos, in Kano, and in Abuja. Modern navigational and
meteorological systems were installed at our airports to improve air safety. In
addition, 6 airports namely: Jos, Markurdi, Yola, Jalingo, Lagos and Ilorin
which are strategically located in proximity to food baskets have been
designated as perishable cargo airports and international standards perishable
cargo facilities are being developed at these airports. A new Cargo Development
Division has been established in FAAN to give focus to this effort.
POWER
We have completed one of the most comprehensive and ambitious power
sector privatization and liberation programmes globally. We have privatized 4
power generation companies and 10 power distribution companies, and have
virtually settled all claims and entitlements of PHCN workers. Some major
cities get an average of 16-18 hours of electricity per day in 2013. This
however dropped in November and December during the transition we expect some
teething problems and then power supply should pick up. In 2013, we also
mobilized $1.5 billion in financing from multilateral sources for investment
and upgrade of the transmission network in 2014 and beyond. To promote clean
energy, we also commenced construction of the 700MW Zungeru Hydro-Power project
in 2013. We have strengthened relevant power market intermediaries such as the
Nigerian Bulk Electricity Trading Plc (NBET), and backed them with financing to
stimulate greater private investments in the sector.
MANUFACTURING:
We launched the National Industrial Revolution Plan (NIRP), which
focuses on industrializing Nigeria and diversifying our economy into sectors
such as agro-processing, light manufacturing, and petrochemicals. In the 2013
fiscal year, Nigeria was named the #1 destination for investments in Africa by
UNCTAD (the UN Conference on Trade and Development), attracting over $7 billion
in FDI. There were a large number of both foreign and domestic investments in
the economy, such as by: $250m investments by Procter and Gamble in Ogun State;
$40 million in agricultural projects by Dominion Farms. To further support the
manufacturing sector, the Government successfully negotiated a strong Common
External Tariff (CET) agreement with our ECOWAS partners, which would enable us
to protect our strategic industries where necessary. The Nigerian Enterprise
Development Programme (NEDEP) was initiated in 2013 to address the needs of
small businesses. Some key interventions by NEDEP include supporting small
companies with access to affordable finance, access to markets, capacity
support, business development services, youth training, and support in
formalizing their operations. In addition, in 2013, we reduced business
registration costs for small businesses by 50%, to help them conserve capital.
Finally, as a result of our backward integration policies, Nigeria is now a net
exporter of cement and expanded cement output capacity from 2 million metric
tonnes in 2002 to 28.5 million metric tonnes in 2013.
AGRICULTURE:
There have been many achievements in the agricultural sector following
the launch of the Government’s comprehensive Agricultural Transformation Agenda
program. In October 2013, inflation fell to 7.8%, its lowest since 2008, partly
due to higher domestic food production. The Government’s Growth Enhancement
Scheme (GES) is providing subsidizing inputs to farmers via an e-Wallet
program. In fiscal year 2013, an estimated 4.2 million farmers received
subsidized inputs via the Government’s Growth Enhancement Scheme. As a result,
in 2013, we produced 1.1 million metric tonnes of dry season rice across 10
Northern states; and over 250,000 farmers and youths in these States are now
profitably engaged in farming even during the dry season. The Federal
Government launched Staple Crop Processing Zones to support investments in the
entire agricultural value chain. At present, there are over $8 billion of
private investment commitments from agribusiness ventures such as: Flour Mills
of Nigeria, the Dangote Group, Syngenta, Indorama, AGCO, and Belstar Capital.
In 2012, 2.2 million metric tonnes of cassava chips were exported, exceeding
the ATA’s target by over 100% while the 40 percent substitution of cassava for
wheat has been achieved through research and collaboration with the IITA and
Federal Institute for Industrial Research. Similarly, there has been a decline
in wheat imports to Nigeria from an all-time high of 4,051,000 MT in 2010 to
3,700,000 MT in 2012.
HEALTH
To further invest in the human capital of our population, we are building
strong safety nets and improving access to primary health care using the Saving
One Million Lives programme. In the 2013 fiscal year, we recruited 11,300
frontline health workers who were deployed to under-served communities across
the country. We have reached over 10,000 women and children with conditional
cash transfer programmes across 8 States (Anambra, Bauchi, Bayelsa, Ebonyi,
Kaduna, Niger, Ogun, Zamfara) and the FCT and we intend to scale up this successful
initiative. As a result, over 400,000 lives have been saved through our various
interventions. Nigeria’s national immunization coverage has now exceeded 80%
and is yielding demonstrable results. The Type-3 Wild Polio virus has been
contained in 2013, with no recorded transmissions for more than one year; while
Guinea worm that previously affected the lives of over 800,000 Nigerians yearly
has been largely eradicated. Facilities at various medical centers across the
country – such as the University of Nigeria Teaching Hospital in Enugu, and the
University College Hospital in Ibadan – have also been upgraded. Finally,
Nigeria has also been honoured as Co-Chair of the fourth replenishment of the
Global Fund to fight AIDS, TB and Malaria, and I shall be co-chairing this
initiative with other selected world leaders.
EDUCATION
To improve access to education at all levels, a number of priority
investments were made in 2013. These include the construction of 125 Almajiri
schools and establishment of 3 additional Federal Universities, to bring the
total number of new Federal Universities to 12. Additionally, special girls’
schools were constructed in 13 States of the Federation. In fiscal year 2013,
we rehabilitated 352 science and technical laboratories while 72 new libraries
have been constructed in the Federal Unity Schools. Furthermore, the
laboratories of all 51 Federal and State Polytechnics have been rehabilitated
and micro-teaching laboratories are being constructed in 58 Federal and State
Colleges of Education. The Presidential Special Scholarship programme for first
class graduates has commenced with an initial set of 101 beneficiaries. Over
7,000 lecturers from Universities, Polytechnics and Colleges of Education are
benefitting from scholarships to support their doctoral training in Nigerian
and overseas institutions.
COMMUNICATIONS TECHNOLOGY:
We continued our
strategic focus on investing in modern ICT technologies. We constructed 500km
of fibre-optic cable to rural areas; 3,000km targeted for deployment in
2013/2014. A total of 266 Public Access Venues were established in 2013 – 156
Rural IT Centres, 110 Community Communication Centres. We facilitated the
deployment of mobile communications base stations in rural areas of Nigeria. A
total of 59 Base Stations have been installed thus far, with an additional
1,000 planned for 2014. In addition, we also provided wholesale internet
bandwidth to Internet Service Providers, Cyber cafes, and ICT centres like
Community Communication Centres (CCC) in rural communities – connectivity to 12
out of 18 pilot sites completed. In 2013, we deployed a fibre-optic high-speed
internet network to connect 27 Federal universities, and provided computing
facilities to 74 tertiary institutions and 218 public schools across the
country. Finally, we established innovation centers to support entrepreneurs in
the ICT sector, and also launched a Venture Capital fund of $15 million for ICT
businesses.
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