According to the Nation, when the National Assembly reconvenes sometime in September after their vacation, the president will present an executive bill titled: “Emergency Economic Stabilisation Bill 2016”.
The bill if passed, will help shore up the value of the naira, create more jobs, boost of foreign reserves, revive the manufacturing sector and improving power. The bill is based on recommendations from the economic team headed by Vice President Yemi Osinbajo. The team reviewed the various policies so far introduced and how they have affected the economy.
In
the bill, the executive will be asking for President Buhari to be given
sweeping powers to set aside some extant laws and use executive orders
to roll out an economic recovery package within the next one year.
The bill if passed will give President Buhari power to:
- abridge the procurement process to support stimulus spending on critical sectors of the economy;
- make orders to favour local contractors/suppliers in contract awards;
- abridge the process of sale or lease of government assets to generate revenue;
- allow virement of budgetary allocation to projects that are urgent, without going back to the National Assembly.
- amend certain laws, such as the Universal Basic Education Commission (UBEC) Act, so that states that cannot access their cash trapped in the accounts of the commission because they cannot meet the counterpart funding, can do so; and
- to embark on radical reforms in visa issuance at Nigeria’s consular offices and on arrival in the country and to compel some agencies of government like the Corporate Affairs Commission (CAC), the National Agency for Foods Administration and Control (NAFDAC) and others to improve on their turn around operation time for the benefit of business.
The
extant law on procurement does not allow contract award earlier than
six months after decision. Part of this is a mandatory advertisement of
the contract for six weeks. Given the present economic condition, the
economic team found this unacceptable and is proposing that the time
frame for contract advertisement be reduced.
Although
the president has the power to order the sale or lease of any
government asset to raise cash, “the procedure is cumbersome and long”.
The draft bill hopes to ease and quicken the process. Sources
within the presidency say as a way of generating revenue, about nine
government assets may be leased or sold which will in turn generate
around $50billion to shore up the nation’s foreign reserves and the
value of the naira against the United States dollar.
“Nigeria may be broke at the moment but we are not a poor country, given our assets and capability.”the source said
About
N58 billion is trapped in UBEC’s coffers because the states cannot
access it as a result of the key condition, which is the payment of 50
per cent counterpart funding. The government is seeking an amendment to
the law so that states will pay only 10 per cent as counterpart
funding. The objective is that state
governments will have access to cash to develop education. This will
facilitate creation of jobs since contracts will be awarded for the
projects.
Regarding
contract awards, the government by the provisions of the law, cannot
mobilise contractors with more than 15 per cent of contract sum. This is
considered to be undesirable by the economic team given the pace the
government wants to move in turning the economy around and in the
provision of critical infrastructure. The bill will seek to allow the
government to mobilise contractors with 50 per cent of contract sum. The
move to get government agencies to fast tract their operations is to
enable foreign investors to come into the country without the current
bottlenecks.
Part
of the recommendations by the new economic bill is that Nigeria's
Consular offices will now be expected to make visas available within 48 hours and visitors, especially tourists who intend to pick up visas at the entry point, will be able to do so. Time
wasting at the airport with duplication of agencies screening incoming
passengers is to be eliminated. Those leaving the country should go
without hassle.
For
the power sector, the government plans to truck gas from source to the
power plants to enable them get what they need for generation.
“This may be more expensive but it is a price to be paid for Nigerians’ comfort”.
It
was learnt that President Buhari will engage the leadership of the
National Assembly before their resumption to solicit support for the
bill’s quick passage.