Stakeholders challenge Acting President on urgent economic issues

Stakeholders in Nigeria’s business and financial sector want acting president Yemi Osinbajo  to expedite action on the persisting dollar shortage, activities of Fulani herdsmen and Niger Delta disaffections, in the absence of the President, who has already given him the mandate to steer the ship of the nation.

They stakeholders also want the Acting President to deal with the issue of Joint Venture Cash call debts, which have not received much traction since an agreement was reached to exit the agreement, ensure that the Forcados terminal comes back on stream as well as resolve lingering issues on the 41 items excluded from accessing dollars at the official inter bank foreign exchange market.
Although the stakeholders expressed confidence in Osinbajo’s capacity to manage the economy while President Muhammadu Buhari is the U.K. to complete medical tests, they would like to see decisive steps on some of these lingering challenges.

“The Acting President and chairman of the economic management team has not effectively positioned himself as an enabler for economic growth, despite ample opportunities to reposition the economy,” says a source who pleaded for anonymity

“Even his response to the health status of Buhari and some protesting Nigerians, showed that he is either not in good standing in the power play, or is being unnecessarily careful, he added.”

The implication of delaying action on the key economic issues would be more hardship for Nigerians, they say.

“One is not suggesting an ambush but the constitution is clear and recognises the Acting President’s leading position and constitutional mandate. Just as president Buhari did well by writing the National Assembly for his vice to act on his behalf. What else does the acting president require to act on some issues of urgency and importance?” asked a business stakeholder.

“The corporate performance for 2016 no doubt will reveal the difficulties imposed by the downturn in our economic fortunes and the sub-optimal management of our foreign exchange since crude oil prices started to tumble in 2014.

“SMEs are already failing and that’s why the unemployment rate is daunting. The corporates which are supposed to be more resilient are already coming out with woeful results which may be compounded going forward, if remedial measures are not taken by the government immediately .
“The low hanging fruit is restoration of peace in the Niger Delta for oil and gas to continue to flow. This will lead to increase in the dollars available to  pay our import bills and provide gas for the thermal stations to stem the dismal electricity output which of recent was as low as 3,000MW,” says Bolade  Agbola, executive director, Cashcraft Asset Management limited.

Signs that the economy is still struggling can be seen in the negative returns in the stock market which is already down by 5.3% percent this year. The naira also traded at N500 to the US$ in the black market on Monday, even though it remained stable at N305.25 in the official market, opening a N195 gap between the official and black market rate, a strong incentive for round-tripping. Also, the reversal in the January PMI figures released by the Central Bank of Nigeria and FBNQuest, signals that the manufacturing sector is still struggling.

But speaking to stakeholders’ fears, Osinbajo promised yesterday, 7 February that government is committed to engaging with the people and fixing the economy, while commending the police for handling the protests with professionalism.
“We are committed to a continuous engagement with our people to explain government policies, receive advice and criticism.”

He said cabinet ministers have gone round eight states so far, holding town hall meetings.

“The most recent was yesterday in Ilorin. There will be more of such meetings in the other states that are yet to be visited. With complete focus on improving the economy everyday, the recession will soon be history,” Osinbajo said in an email message to BusinessDay yesterday.

Analysts in emailed response to questions from BusinessDay, have also expressed confidence that the Acting President has the capacity to deal with the issues facing the economy.

“They have a lot of respect for him (Osinbajo) and will probably assume Nigeria is in capable hands while the president is in London,” Charlie Robertson, Renaissance Capital’s global chief economist, said in response to questions.

Business owners who spoke to BusinessDay say they are being bogged down by lack of direction and urgency by a government that promises to effect change in all spheres of life.

Buhari was scheduled to return to Nigeria on Sunday and resume official duties on Monday, after leaving on January 19 to undergo unspecified medical tests.
Buhari “was advised to complete the test cycle…and there is no indication as to when the president will return,” his spokesman, Femi Adesina, said on Monday.

Buhari’s government is confronting a significant slowdown in  growth.
The naira has fallen to record lows near N500 to the US$ in the parallel market, while the country will most likely be confirmed in its first full-year recession in 25 years, once fourth quarter data is released by the bureau of statistics later in the month.

John Omachonu