Federal, state govts create committee to promote export

E. UPDATE ON THE STATE OF THE ECONOMY BY THE HONOURABLE MINISTER OF BUDGET AND NATIONAL PLANNING (HMBNP)

· The HMBNP briefed Council on the State of the Economy, informing Council that the earlier projection was that the country will exit recession by the third quarter of 2017. He however noted that the exit from the recession came three month earlier i.e. in the second quarter of 2017.

· He gave Council a breakdown of sectoral performance of the economy, adding that Agriculture has the highest GDP growth.

· He told Council that inflation has come down to 16.01% in the second quarter from over 18% in the last quarter of 2016. Council was also informed that confidence is gradually returning to the economy.

· He invited Council to note as follows:

i. That the NBS has published the GDP for the economy for Q2 2017;

ii. That the economy has now recovered from recession growing 0.55% in the second quarter of 2017, with Agriculture growing at 3.01% in Q2 2017, Industry growing for the first time in nine quarters by 1.45%, while Services contracted by -0.85%;

iii. That the recovery was driven largely by growth in agriculture, manufacturing, crude oil and gas production, solid minerals, financial services, and electricity supply;

iv. That headline inflation has trended downwards every month since January, though further developments in food prices still need to be watched closely;

v. That the economy is sustaining the growth in capital imported into the country with improvement in foreign reserves and trade balance;

vi. That unemployment and underemployment remain a challenge for the economy;

vii. That despite these improvements, the economy is still deemed vulnerable to shocks and focused policy implementation is required to sustain the recovery; and

viii. The need to continue implementing the ERGP for sustainable development.

F. PRESENTATION ON SPECIAL ACCOUNTS

· The Honourable Minister of Finance made presentations to Council on the status of the Special Accounts of the Federation. She told Council that the current balances in the Special Accounts of the Federation are as follows:

(i) Stabilization Account Balance as at 26th September, 2017 stand at N4,354,300,295.64

(ii) Development of Natural Resources Account Balance as at 26th September, 2017 stands at N84,693,588,214.54

(iii) Excess Crude Account balance as at 22nd September, 2017 stands at $2,309,577,899.02

FEDERAL GOVERNMENT BUDGET SUPPORT TO STATES

· With the N630 billion figure available for FAAC this month, exceeding the N600 billion threshold, Council was informed that the Budget Support Facility will be unnecessary this month. Council also urged for the continued compliance with the Fiscal Sustainability Plan by the States for continued eligibility for the Federal Government Support Loan Facility. 8 States of the Federation met the Fiscal Sustainability Plan criteria in July and therefore received the Budget Support for that month. About 22 other States are in the process of meeting the criteria.

AOB ISSUES:

ROAD COLLAPSE

· Council members expressed concern over issues of roads construction, damage and maintenance and suggested that the Ministry of Power, Works and Housing come up with strategies to regulate the weight of heavy duty vehicles plying the roads as this may be responsible for road damage and collapse.

TAKEOVER OF SOME ROADS BY STATES

· Council also resolved that interested States could write to the President requesting approval for States to take over some of the Federal Roads to ensure proper and efficient maintenance. NEC also expressed willingness to take a wholistic approach on the issue of such roads across the country.

NEW NEC SECRETARY INTRODUCED

· The HMBNP informed Council that a new Secretary to the National Economic Council, Mr. Leon L. Aliboh has resumed duty following the retirement from 35 years of service by the former Secretary to Council, Mrs. Nana Fatima Mede.

· Mr. Aliboh is Secretary to Council by virtue of his new position as Permanent Secretary for the Ministry of Budget and National Planning.