SCCI Calls For N150bn States Economic Summit | Independent Newspapers Limited
Newsletter subscribe


SCCI Calls For N150bn States Economic Summit

Posted: Mar 25, 2016 at 3:00 am   /   by   /   comments (0)

Sapele Chamber of Commerce and Industry (SCCI) on Thursday advocated State Economic Summit that would originate from the Local Government Councils with a target of 500,000 jobs per year with an investment of N150billion.

SCCI’s President, David Iweta, who made the call in an exclusive interview with Independent, said with President  Muhammadu Buhari desirous of providing mass employment to eradicate the huge army of unemployed working class, the state approach Economic Summit concept should be applied.

He said: “Each State should host her State Economic Summit originating from Local Government Councils targeting 500,000 jobs per year with investment of N150billion (US$750m), irrespective of size and population of each state. With collaborative effort of the organized private sector, a 3year investment of N16.2trillion (US$81billio) at 6% interest rate per annum will employ 54million people to cause the CHANGE slogan of APC government.

“The loan shall be borrowed by the Federal Government by issuing her guarantee to lending international institutions such as Development Finance Institutions (DFI’s), Export Credit Agencies (ECA) and Prime banks, Multilateral Investment Guarantee Agency (MIGA) an arm of the World bank and secured by act of parliament empowering the Central Bank of Nigeria (CBN) to borrow at 2% and lend at 6% by sharing and spreading 4% amongst Bank of Agriculture (BOA), Bank of Industry (BoI) Nigeria Export Import Bank (NEXIM) and CBN at 1% each as supervision and monitoring fees/charges. The loan shall be repaid over 5-10years for mainly plant & machinery, infrastructure and working capital.”

He noted that the initial security shall be the land and metamorphosed into all Assets Debenture upon commissioning of farm or manufacturing facilities.

“The Federal, State and Local Governments shall hold 5% equity each in all projects total 15% as additional source of Internally Generated Revenue (IGR) share of profit/dividend outside taxes and levies. Some projects shall be dedicated to export to pay foreign exchange loan component without inhibitions due to future exchange rate fluctuations,” he said.

He specifically said: “The proposed Summit(s) should as a matter of necessity be centred around the organised private sector of each state if the desired result to diversify and grow the economy is the reason for the summit.

“If amongst others the purpose is to achieve job creation, poverty alleviation, non oil export, attract foreign exchange, strengthen the Nigeria Naira by sustaining the exchange rate of the Naira, contribute largely to Gross Domestic Products (GDP), improve on our falling per capital, guarantee food security, afford balance of trade, increase our foreign reserve, guarantee security of life and property, conservation of forex and reduction of food import bills, grow our economy by local activities and many more, each state of the economy should be held responsible to provide the needed employment and economic growth and not the federal government and must be driven by the Organised Private Sector (OPS) as generally accepted to be the major provider of employment that will stimulate the economy industrially.”