Fiscal Roadmap 2017

Fiscal Policy Initiative 

 
1.

Recognise inherited debt profile after a robust audit process:

Introduce promissory note program to finance verified liabilities

 Issue debt certificates to contractors, Ministries, Departments & Agencies (MDAs), and State Governments

Expected Impact

Improve cash flow of businesses

Improve Banks’ Non-Performing Loans
(NPLs)

Free up Banks’ balance sheet for lending to private sector

Improve Government’s business interaction with the private sector

2.

Mobilise private capital to complement Government spending on infrastructure:

  Roads Trust Fund

Family Homes Fund

Extend infrastructure tax relief to a collective model to attract clusters of corporate entities

Expected Impact

Expand the provision of infrastructure

Drive growth of non-oil sector.

Drive economic growth

3.

Strengthen fiscal/monetary handshake:

Replace administrative measures on list of 41-items with fiscal measures to reduce demand pressure in parallel market

Encourage domestic food production through specific incentives e.g. accelerated depreciation on food manufacturing equipment and Zero (0%) duty on green houses

Planned revitalisation of refineries

Increase Diaspora remittances via participation in the buyer support scheme for the Family Homes Fund

Expected Impact

Reduce demand for US Dollars

Increase supply of US Dollars

4.

Incentivise exports:

Restructure the Export Expansion Grant (EEG) to a tax credit system

Rationalise tariffs and waivers in key export sectors

Expected Impact
Encourage/incentivise non-oil exports

Drive import substitution

5.

Encourage investment in specific sectors through fiscal incentives:

Accelerated depreciation on equipment in strategic sectors e.g. food processing, mining and power

Rationalise tariffs and waivers in priority sectors

Expected Impact

Drive investment in strategic sectors

6.

Continue expansion of fiscal space through revenue  enhancement and cost consolidation:

Customs Single Window (being implemented through a Private Public Partnership (PPP) scheme)

Template for non-allowable expenses for Government Agencies.

Overhead cost control by the Efficiency Unit

Continuous risk based audit by the Presidential Initiative on Continuous Audit

Expected Impact

Revenue enhancement

Cost containment

7.

Improve fiscal discipline at Sub-National level:

Extension of efficiency unit at Sub-National level

Fast track municipal bond issues to deepen the bond market

Conversion to International Public Sector Accounting Standards by all State Governments.

Expected Impact

Improved fiscal position at Sub-National level

8.

Enable and accelerate Recoveries process:

Whistle-blower scheme

Centralised database on recovered assets

Asset tracing

Professional management of recovered assets

Expected Impact

Increased efficiency of Recoveries process

Increased budgetary funding availability from Recoveries

9.

Rebalance debt portfolio to extend maturity and optimise debt service cost:

Rebalance public debt portfolio with increased external borrowing (60:40 target)

Extend maturity profile of public debt portfolio

Deploy long-term debt instruments including Infrastructure and Retail Bonds

Maximise use of concessionary loans

Expected Impact

Rebalanced debt profile withimproved debt service to revenue ratio

10.

Catalyse Micro, Small and Medium Enterprise (MSME) growth           through specific measures to improve capacity and access to finance:

Development Bank of Nigeria (US$1.3bn)

Increase share of business awarded to MSMEs from Government contracts

Tax harmonisation and tax incentives

Accelerated depreciation

Expected Impact

Acceleration of MSME growth

Festus Akanbi
SA Media to Honourable Minister of Finance
Federal Ministry of Finance, Abuja
M +234 (0)803 8588469

[email protected]