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  • President Tinubu and Nigeria’s Economy Remodeling

    President Tinubu and Nigeria’s Economy Remodeling

    By Adefolarin A. Olamilekan

    “We shall remodel our economy to bring about growth and development through job creation, food security and an end of extreme poverty”

    The above quote was copy from President Bola Ahmed Tinubu inaugural address on Monday at the Eagle Square in Abuja as the 16th President of Nigeria.
    Interestingly, the speech though was less motivating and disappointing to some of his critics. Considered to be rhetorical without substance.
    Meanwhile to his supporters and APC faithful, the speech is a deep reflection of what need to be done as a government ready to hit the ground running.
    Nevertheless, the speech did provides angle the new APC government under the leadership of President Tinubu want to take Nigerians through.
    Moreso, that it has assured Nigerians of his determination to “govern, rather than rule them, promising to engage in consultations and never to dictate to the people”.
    While declaring the administration’s readiness to remove fuel subsidy and re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions”.
    President Tinubu call on the Central Bank of Nigeria (CBN) to work towards having a unified exchange rate.
    According to President Tinubu Interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy at a higher level.
    President Tinubu also promised to ensure budgetary reform, stimulating the economy without engendering inflation.
    He said there will be “an industrial policy that will utilize the full range of fiscal measures to promote domestic manufacturing and lessen import dependency.
    In addition, to his plans is to make electricity more accessible and affordable to businesses and homes alike. Promising to double power generation and improve transmission and distribution networks improved. By also encouraging states to develop local power sources as well. His government would review all “multiple taxation and various anti-investment inhibitions,”
    And promised to ensure that investors and foreign businesses “repatriate their hard earned dividends and profits home”.
    Algain, he said his government would initiate bill to allow the administrations to embark on “labour-intensive infrastructural improvements, encourage light industry and provide improved social services for the poor, elderly and vulnerable”,
    Meanwhile, he reiterate the administrations position to make agricultural a hubs of value-added processing sector.
    By also introducing best “modern practices in the livestock sector that would minimize the perennial conflict over land and water resources in this sector”.
    As well as creating a secured rural incomes through “commodity exchange boards. That would guaranteeing minimal prices for certain crops and animal products” Yet still, he promised a proactive steps in strengthening the effectiveness and efficiency of the various anti-corruption agencies”,
    While he intend to effectively tackle the menace of insecurity, by reforming the security doctrine and its architecture. His administration shall “invest more in security personnel, increase there number. better training, equipment, pay and firepower.
    Tinubu presidency foreign policy objective is the peace and stability of the West African subregion and the African continent at large. Less we forget, the government promised to create meaningful opportunities for our youths by creating one million new jobs in the digital economy.
    Having said, the point of departure for this pieces is centred on government plans to remodeled the Nigeria’s Economy.
    A very laudable ambitious that reminds us of successive government action of the past in this same trajectories.
    A not too far voyage of this sort was the economic diversification of the Buhari administration. Although, set in it own Economic Recovery Growth Plan (ERGP 2016-2018).
    The goals and objectives set were simple only to be complicated in terms implementation. So also is the Transformation Agenda of the Jonathan administration. Well captured to take Nigeria’s out of our rentier crude oil dollar economy.
    Alaas, same fate of poorly implementation caused a reversal of the polices. From, this two experiences, there is nothing wrong in trying again or engaging in another policy initiative to salvage the economy.
    Particularly, as the past failure to have a functional economy remains the core critical crisis we are faced today
    Currently, the GDP ending quarter 1 going into second quarter is slow with 2.31%. Unemployment is soaring close to 37% with KPMG 43% projection steering us in the face.
    Our 133 million multidimensional poverty riding brothers and sisters are hangers in the neighborhood.
    Sadly also, food inflation of 19% is just too scary to contend with, not to mentioned the deficiency that manufacturing sector face with crippling cost of production and zero returned on investment.
    We don’t need to reminds President Tinubu, all these paths suffocated the economy. Instructively, it is our patriotic zeal that we let him understand that previous government also speak in this light, proposed a way out but caged it self through cosmetic programs called economic diversification or transformation.
    Now for president Tinubu it is remodeling our economy. Fine, it a welcoming and brilliant development ideas. Even has the president promised making public detail key aspects of his programme.
    Nevertheless, we see need to critically point out some core areas this remodeling of economy must not failed to appreciate. First, is science and technology that in today global economy. No emerging economies slack on this to move forward, there is already a road map through the 2021 – 2025 National development plan documents that incorporate science, technology and innovation into our economy volume. Secondly, is the aspect of localization of the industrial base sector through incentive of power, electricity, road infrastructure and human capital development. What this entails is encouraging needed facilities for rural and semi urban areas for the establishment of industries. Meanwhile this industry would be align to turn our raw material into finished product for local consumption and export.
    Lastly, this bordered on economic inter governmental relations between the federal and subnational government. Expressly, any economy remodeling that failed to incorporate subnational government is time bound to failed. A case in point is the transformation agenda policy and economic diversification.
    Tinubu speech may lack ingredients to delivered the economy, what is paramount is implementation and deliverable positive results.
    As late Nigeria’s foremost Economist Sir Henry Boyo would always say “May God save Nigeria’s Economy “

  • Arguable Agencies and Nigeria’s Economy Poverty

    Arguable Agencies and Nigeria’s Economy Poverty

    By Adefolarin A Olamilekan

    The rate of economy development and growth across the globe amongst nations. Given, is tied to the coordinating critical role played by agencies in each nations.
    As economists teach, that respective agencies and institutions in nations determine long-term economic development and growth.
    With an understanding that public agencies are much more crucial in economic activities.
    Conversely, in recent time, as the global economy continues to unfold. There are complementary roles public agencies play together in line with making sure that the economy result is positive.
    Although, each of the agencies have its own unique and set out priorities on what to do, how to do, when to do as well as to whom to do for.
    For instance, the Central Bank of every country is the Master Baker of Monetary Policies that impact reasonably. On the interest rate,inflation,cash flow,credit access, and the general economic output from micro and macroeconomic levels.
    Nevertheless, the manner at which the Central Bank dish out it policy essentially, impact every agency of the state. Responsible for sector such as Agriculture, Transport, Education, Health, Security, Aviation, Telecommunication, Power, Hospitality, Infrastructure and many others.
    Chiefly, also the failure to have a linkage policy, with positive bearings on all sectors. Can be destructive and counterproductive.
    In all honesty, Nigerians are not finding it easy with the economy. And one may need to ask pertinent questions regarding the role of numerous Nigeria government agencies in the economy.
    Instructively, also if one should interrogate, do government agencies have a role to ensure Nigeria economy develop and grow satisfactory?The simple answer, In short, is yes. However, one critical questions that its answer cannot be categorically affirm as yes is. How much contribution is coming from government agencies to enable the economy grow? One may be disappointed on the answer from the question above.
    Because, over the years we grapple with little or no appreciable contributions from government agencies.Rather, we are confronted with official excuses that define the poor health of the economy thus far.
    For instance, some of us are envious of the successive interventions of the Central Bank of Nigeria (CBN) cutting across multi-sectorial levels. This CBN interventions ruins into trillions of naira in the last seven years.
    Take for example the CBN interventions in the power sector. Particularly, in Nigerians expectations supposed to translate to steady electricity power supply. That is key to Small Medium Enterprises (SMEs) and large manufacturing. But the result of that intervention uptill date, is excuses upon excuses. Sadly also our National Grid are collapsing on monthly basis.
    Another is the agricultural sector that public spendings in billions of naira is not in short supply. Regreatably, surging food prices on daily basis cannot be comprehend.Even though, the fear of bandit kept farmers away from plating. Prediction of looming food crisis is what we are being told.
    What can we say about the security sector that has been most enrich with trillions of naira. Ironically, poor performance to tame insecurity point out we are not ready yet.While elements responsible for insecurity freely lives amongs us and kidnappers walk freely to enjoy proceed from ransome collected from there captives. On the other hand, our security agencies has since lost touch on the reality that there is strong corrolation between economy growth and security.
    A look at infrastructure, road for example across the country from federal,state and local government is in pitiable conditions.Good road network alongside other Infrastructures definitely is a leeway to ensure stable and enabling business environment. Agencies in that sector for a long time now are the very road block to successful completion of project. In recent times, contract re-evaluation between government and contractors is now a normal procedure to bypass procurement rules and regulation. And this are delibrate acts fueling the cycle of corruption in that sector.
    The economy in our estimation suffer majorly as it dependent on foreign technology,and failure to deploy local technology know how. Although, the establisment of National Agency for Science and Engineering Infrastructurs(NASENI) with it over tweenty specialize sub-agencies was in the right direction. Unfailingly,NASENI is expected to lead the industrialization of the nation,by feeding the manufacturing sector with tool,machinery,equipment, spare part and many other compleex innovation engineering. Alaast, where are we with NASENI? Hence, interrogate the people in charge of NASENI what is hindering there contribution to the economy. There reply would be same official excuses that other government agencies laments over.
    Don’t be suprise to received the same excuses from National Automobile Council (NAC) since inception with nothing seriously contributed to the economy.
    We can go on and on highlighting several agencies of the Nigerian state having little or nothing to contributes.Only exist to draw on budgetary bills.
    One is pained seeing beutiful ediface of many of these agencies and be range in anger as the economy keep stinging masys of Citizens.
    For us,it is a shame to have arguable agencies, without any corresponding contribution to the econony. The contention that they employ people to be paid salaries is so serious as there core mandate to impact the economy. We must appreciate that agencies of government in there totality are not charity or foundation outreach.Because at the face value and value chain of every government agency is to steadily grow the economy. Arguably, why is ours not so?
    Our stand, what should be done going forward. First, there is need to remove any hindrance against government agency role towards economic growth.The primacy of economic first should be there priorities sphere in promoting economic growth.
    Secondly,the factors determining economic and human development are open access in the economic sphere
    Our suggestion is for a linkages and interconnected in agencies activities.For instance nothing stop CBN and NASENI in colloboration in technology innovation for the manufacturing and Agric sector it interventions focus.
    Thirdly, we equally believe that inter-agencies colloboration should replce every form of inter-agencies rivalries.
    Colloboration on economic activities among government agencies effort in resources development and finished product.Again nothing stop National Agricultural Land Development Agency (NALDA) from partnering with NASENI to produce all it farm tools, equipment and food silos.
    Lastly, we need to evidently establish mechanism to checks and monitor the contributions of this arguable agencies to the economy.This is necessary to balance there sphere, sufficiently toward economic growth.
    For us a practical demonstration to achieve econonic growth.Can only be achieve if government agencies cultivate linkages that embraced economic activities integration, interconnection and networking.
    Although we appreciate the present political climate of democracy,wich stressing popular participation by all. Conversely, political democracy alone cannot put food on the table, it paramountly need public agencies stedfastness to ensure econonomy growth and stability.

  • Making Local Technology Work’s for Nigeria’s economy

    Making Local Technology Work’s for Nigeria’s economy

    By Adefolarin A Olamilekan

    The dawn of a new year, as always, presents an opportunity to take stock of events of the past year’s and strategize for a more economic productive year activities. Unfortunately, this past years was indeed very challenging to Nigerian’s especially with food surging inflation in prices,unemployment’s,COVID-19 pandemic and insecurity.

    In today world that we live in, complex engineering technology innovations is the biggest sector that generate employment.
    A look at the Asia Tigers and Asian Combs economy focus implies.
    The demonstrations of technology to enhance the stability and sustenance of there economy as priority.

    Over the years as a nations we over look this angle of global capitalist and developmental state core strategy for economic development.
    For us the challenges our country is facing today from poverty, unemployment, insecurity, corruption, and other related challenges.
    Required innovative engineering technology such as been resolved by its.

    Following President Muhammadu Buhari’s approval and presentation of the 195 pages National Development Plan 2021- 2025. A part of this documents details the focus of the nations on usage of local technology in crude oil and gas explorations.
    We considered this as laudable and foremost to economy development.
    This also goes with earlier Presidential Executive Order on Science and Technology as well as the President Buhari directive to the National Agency for Science Engineer Infrastructure (NASENI) to be at the fore front technology linkage to economic development.
    Meanwhile, the Amended and signed Financial Act 2021 is empowering NASENI with 1% funding from consolidation accounts.
    To this end the pride of our local technology’s and development of Nigeria economy is not far fetch.

    Interestingly, as ideas and innovations technology of various areas of interest for Nigeria such as agro allied machines and equipment for mechanized agriculture, power energy, health, laboratory equipments, military vehicles, weaponry and ammunition, water infrastructure, construction equipment, ICTs soft and hardware, solar and wind energy products, automobile’s parts and many others.
    We are much aware that with our local technology. Security equipment can be manufactured here in Nigeria.
    Armoured personnel and bullet proof vest and others are already been produced. If this could be sustain, it would help us improve and acquire many more technologies for the development of Nigeria economy especially in the energy, security and agricultural sector.
    Agro allied machines and equipment from that would not just help our farmers to improve there farm mechanization but would enable them overcome inequality and develop the potential that exist in the country side to create economic resilience and sustainability.
    Other areas our technology could work and furthered aimed is helping local farmers in food production and increase productivity.
    Meanwhile linking our raw agricultural produced from primary, secondary and to tertiary manufacturing sectors supply of finished products and semi finished products. Is a big plus from our home grown innovative engineering technology.
    However, the level of optimisms about our local technology should be scale up, as a form of patronage and acceptance.

    As we look forward to better economic outing in 2022. We must however be mindful of our obligations as a nations. Charging our policy and decision makers.
    To see the applicability of local technologies innovation. As part of our economic strategies to revive the sickly economics system of import dependent. For us this cannot be over emphasised and we call on all patriotic citizens to remain steadfast in our commitment to upholding our local technology.
    Nevertheless, our modest way forward is, first to
    enhance institutional capacity and strengthening our productions in the Nigerian economy system
    Secondly, we must as a nations deliberately seek a paradigm shift in deploying technology’s amongst others to create jobs, address poverty in and also empower Small and Medium Enterprises (SMEs). This is fundamental in so the Nigeria manufacture products can compete both at local and foreign markets
    Thirdly, while we recognise and appreciate the role research institutions play in economy developments. There is no doubt that, the enormous task of building a veritable and modern technology system for the country remains unfinished. As a developing nation, we must continue to innovates, incubates,experiments and research to enhance our research output to meet local, regional ad global standards.
    At the same time improve on the requisite skills and capacity needed to adequately fulfil our technology mandates
    Fourthly, a comprehensive review of the scientific and technological methodology is needed. In line to it fully embrace local contents. These efforts would further flourish our cottages industries and collaboration with relevant stakeholders.
    As we expect support from federal, state and local government levels.
    In addition, we must ensured advocacy efforts to properly sensitised regarding the imperatives of local technology’s in addressing our economic needs to prevent misinformation especially in a political season we are today.

  • FG Urged to Rescue Nigeria’s Economy From Total Collapse

    FG Urged to Rescue Nigeria’s Economy From Total Collapse

    By Isaac kertyo, Makurdi

    The Archbishop of the All Nations Evangelism Ministries, and National President, Christian Association of Clergies in Nigeria, Dr Yimam Orkwar has urged the Federal Government to as a matter of urgency strengthen its Economic Team to rescue the nation’s economy from total collapse.

    In a communique issued by the Synod of the Ministry and signed by its Chairman, Archbishop Orkwar during the 2021 Fresh Oil International Convention held in Makurdi, noted that ” the Synod observed with great concern the state of the nation’s economy, debt profile of Nigeria, the declining value of the Naira and the rate of borrowing by the Federal Government.”

    Archbishop Orkwar urged the Federal Government to intensifies efforts in the fight against corruption. “The present administration had at its inception of her tenure of office declared zero tolerance for corruption and to vigorously fight the war against corruption devoid of political affiliations.”

    The Clergy implored President Muhammadu Buhari to ensure that Nigeria attains the status of a secured nation, adding that insecurity must be addressed.

    The Archbishop commended the Nigerian Army and other law enforcement and security agencies for their sense of patriotism, loyalty, and sacrifices in the war against terrorism in several states of the nation and urged them to remain steadfast.

    The Cleric enjoined the President to desist from forcing Nigerians to take the Covid-19 vaccine, advising that it should be voluntary since according to him the vaccine is an experimental vaccine.

    The communique further reads: “Synod calls for prayers for the President, Governors, and political leaders to have reverence for God, uphold equity, fairness and Justice in their service to the nation.”

  • Coronavirus: FG to cut down 2020 budget as Buhari constitutes committee – Minister

    Coronavirus: FG to cut down 2020 budget as Buhari constitutes committee – Minister

    President Muhammadu Buhari on Monday constituted a committee to assess the impact of the Corona virus outbreak on Nigeria’s economy with a view to cut down the size of the 2020 budget and reduce the 75 dollars oil benchmark.

    The Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, announced this while addressing State House correspondents after closed door meeting with the President at the Presidential Villa, Abuja. Nigeria’s

    President Buhari had in December 2019 signed the 2020 budget of N8.83 trillion into law.

    The budget, tagged; “Budget of Sustaining Growth and Job Creation”, which key assumptions and parameters was based include crude oil production of 2.18 mbpd while the benchmark oil price was 57 dollars.

    The budget assumed a deficit of 1.52 percent of the estimated gross domestic product – representing around 2.18 trillion naira – to be financed through foreign and domestic borrowing.

    However, the minister revealed that the committee, which will revisit the crude oil benchmark and lower the price, is expected to submit its report to the President by March 11.

    She said: “We just met with the President to discuss the matter of the impact of the Coronavirus on our economy and Mr President has formed us into a committee, with the Minister of State, Petroleum Resources, the Central Bank Governor, the GMD NNPC and myself as members.

    “Our mandate is to make a quick assessment of the impact of this Coronavirus on the economy, especially as it affects the crude oil price.

    “We will be writing a report and brief Mr President tomorrow or Wednesday morning and after that we’ll also have more substantial information for the press.

    “But it is very clear that we will have to revisit the crude oil benchmark price that we have of $57 per barrel, we have to revisit it and lower the price. Where it will be lowered to is the subject of the work of this Committee.

    What the impact will be on that is that there will be reduced revenue to the budget and it will mean cutting the size of the budget. The quantum of the cut is what we are supposed to assess as a committee.’’

    The Minister of State, Petroleum Resources, Mr Timipre Sylva, who also fielded questions from the correspondents, said in the coming days, when all oil producing nations begin to see the effect of the reduction of oil prices, OPEC might meet again and reconsider its position on cutting production.

    On the issue of engaging Russia, Sylva said:  “We as a member of OPEC are not in a position to take that engagement on our own unilaterally.

    “There was a disagreement between OPEC and OPEC+, it’s not just Russia, but the biggest producers within OPEC and OPEC+  are Saudi Arabia and Russia.

    “We believe that in the coming days when all of us would have begun to see effect of the reduction of prices, OPEC and OPEC+ might need to meet again and reconsider our positions.

    “Meanwhile, we expect also that a lot of discussions are going on at the level of Saudi Arabia and Russia, but as Nigeria, we are not in a position to begin to engage members on this matter.’’(NAN)