President Muhammadu Buhari on Monday, August 1, reeled out new strategies, on how to reduce the costs of annual importation of various items into Nigeria, from N9.85 trillion to N8.79 trillion, by 2019.
It could be recalled, that President Buhari, had through the Central Bank of Nigeria Governor, CBN, Godwin Emefiele, said it was shameful for Nigeria to continue import toothpick, rice, fish, sugar, and wheat every year, when such goods can be locally produced.
Emefiele, was reported to have barred 41 of such categories of items from accessing forex, in a bid to rejuvenate local manufacturing firms.
Post-Nigeria gathered, that the proposal by the President to restrict more items imported, will take effect from 2017-2019 Medium Term Expenditure Framework, which will be submitted to the National Assembly in October.
According to the News Agency of Nigeria, NAN, which obtained the documents from a source at the Ministry of Budget and National Planning, on Monday in Abuja, the Framework shows a decrease of about N1.05 trillion in import bill, from 2016 to 2019.
Nigeria, since the 1990s, have been heavily dependent on importation, as trillions of Naira are spent annually on importing processed meat, poultry, tomatoes, toothpicks and clothing, among several others.
This by implication, has led to the depletion of the nation’s foreign reserves, from over $31 billion former President, Goodluck Jonathan left it, to $26 billion presently.
Statistics from the Central Bank of Nigeria, shows that rice, wheat, fish and sugar, account for the highest amount of food imports into the country, and this few items gulp about N3.4 trillion annually.
Flip side of the document, revealed that the importation into the country would rise slightly to N9.9 trillion in 2017, due to slow economic recovery.
Statistics from the Central Bank of Nigeria, shows that rice, wheat, fish and sugar, account for the highest amount of food imports into the country, and this few items gulp about N3.4 trillion annually.
Flip side of the document, revealed that the importation into the country would rise slightly to N9.9 trillion in 2017, due to slow economic recovery.
However, after the recovery, it is projected that the country would begin to see a significant reduction in the level of importation, from N9.9 trillion in 2017, to N9.34 trillion.
It also projected, that there will be a reduction in the level of importation to N8.79 trillion, in 2018 and 2019 fiscal periods.
To achieve this feat, the document noted that the President was determined to achieve the giant stride, through the diversification of the nation’s economy to agriculture, solid minerals and manufacturing.
It said, “The fiscal strategy for 2017 to 2019, builds on the framework of the 2016-2020 Medium Term Development Plan, designed to reflate the economy out of recession to a sustainable and inclusive growth path.“Government will support rapid development of Small and Medium Enterprises, through increased funding and focus on value chain that will generate wealth and improve sufficiency,” the document stated.
Aside that, the document also indicated that the Federal Government is determined to increase exports of locally manufactured goods and services, in the next three years.
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