The Federal Executive Council presided over by Vice President Yemi Osinbajo on Wednesday approved the 2021-2025 National Development Plan, which is a successor programme to the Economic Recovery and Growth Plan.
The plan, with an investment size of N348.7tn, will be funded by the federal, state governments and the private sector.
Briefing correspondents after the council meeting at the Presidential Villa, Abuja, Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, explained that the plan was structured on economic growth and development, infrastructure, public administration, human capital development, social and regional development.
She revealed that for the investment size, the public sector would contribute N49.7tn while the private sector would supply N298.3tn.
According to her, the funding strategy includes broadening the tax base and expanding the capacity of the private sector through creating investment opportunities and delivering quality engagements and incentives.
Ahmed explained, “Today, the Ministry of Finance, Budget and National Planning presented a memorandum to council, requesting for approval of the National Development Plan for 2021-2025 which is a plan that is succeeding the Economic Recovery and Growth Plan which will expire in December 2021.
“This National Development Plan we call NDP for short is structured around six concepts and these concepts include economic growth and development, infrastructure, public administration, human capital development, social development and regional development.
“The framework projects average GDP growth of five per cent. The plan has been costed to have an investment size of N348.7tn over five years.”
She put the investment size to be contributed by the public sector at N49.7tn, representing 14.3 per cent and the private sector at N298.3tn representing 85.7 per cent.
The public sector expenditure component of N49.7tn will be contributed by the federal government as well as the states.
Ahmed said, “The Federal Government expenditure component is N29.6tn representing 8.5 per cent of the total expenditure size while the state governments will contribute N20.1tn representing 5.8 per cent.
“The funding strategy for the plan has also been identified and this includes broadening the tax base and expanding the capacity of the private sector through creating investment opportunities and delivering quality engagements and incentives.”
She said the government would also explore domestic and concession financing sources and strengthen and set up financial investment’s vehicles and public-private partnerships.
Also speaking, the Minister of State for National Planning, Clement Agba, said in drafting the NDP, the government considered the criticisms that trailed the NDP including the fact that it was not inclusive enough.
The Minister of Health, Dr Osagie Ehanire, also told correspondents that FEC approved contracts worth about N1.26bn for projects in Federal Medical Centre, Katsina and Uthman Dan Fodio University, Sokoto.