Pulling the Nigerian economy out of recession (2)

The World Bank ease of doing business gets worse each year for Nigeria and yet we clamour for Foreign Direct Investment. Just in 2012 Nigeria was placed 132nd out of 181 nations but today we are at 169 out of 189 economies in 2016, a figure that was 37 places worse off compared with our 2012 performance. The import of this rating is that we do not have friendly globally accepted policies of getting business done compared with other nations. Nobody has bothered to look at the issues involved to find ways of eliminating the clog in the wheel of attracting investors.

For instance, it takes Federal Road Safety Commission about 8 months to process as little as a driver’s license and nobody is asking why? The challenge of making our monetary policies align with the fiscal policies is creating shock and panic in liberalization of the foreign exchange among other issues. Security is seen as key to creating an enabling environment for businesses to thrive. However the wave of insecurity in our country today is spreading like wild fire stoking fears in every citizen.  The country is now a theatre of violence, wanton killing by insurgents and herdsmen, kidnapping by militants and non militants etc and l think it is high time government declared state of emergency on security to curb the ugly trend.

Recently, the federal government introduced a new agriculture policy that focuses on food security, import substitution, job creation and economic diversification for the country to compliment the Nigeria Incentive Risk Sharing Agric lending (NISRAL) scheme that was introduced in 2013. This, in my opinion, is a move to the right direction. However, the problem of our farmers now is how to reduce or eliminate wastages of harvest. So, whatever policy that is initiated should include the development of a preservation infrastructure across the Agric value chain coupled with an irrigation that will ensure continuous and all year round farming for our rural farmers.

This write up cannot be concluded without addressing what looks like a clog on the wheel of becoming an emerging economic tiger in no distance future. Nigerians are concerned with the poor situation in the camps of displaced persons. It is indeed an act of wickedness on the part of the government to have gathered millions of ordinary Nigerians in a school compound for no fault of theirs without the provision of basic amenities. The camp is now a place where women are being impregnated with reckless abandon. Imagine the thousands of mal-nourished children roaming about the camp with under aged girls and old women carrying new born babies. This, in my opinion, is a time bomb waiting to explode which could be a threat to the future of a united and peaceful Nigeria.  Consequently, I strongly appeal to the government to relocate the displaced persons to a better camp with basic amenities including schools and farming facilities to engage them properly for commercial benefits.

In Conclusion, as a country that is blessed with all the natural resource that if properly harnessed will make us emerged as one of the leading economies in the world, we should put all hands on deck to change our economy from rent seeking to a productive one. To achieve this, the President has presented a request for approval of a foreign loan of $29.96 Billion which is a flash in the pan to address the huge infrastructure deficit currently being experienced with enormous funding requirement as a way out of the current recession. However, the National Assembly has started another tactical delay just like what they did during the 2016 Budget approval because of unhealthy relationship between them and the Executive.  It was Stanley Allyn that says that the most useful person in the world today is the man or woman who knows how to get along with other people and that human relation is the most important science in living. As such, our law makers should see themselves as the most useful persons in a time like this and  get along with the executive with a view to salvaging our economy from recession and as well work towards achieving the vision 20-2020.

When it comes to winning with the people, everything begins with the ability to think about people other than ourselves. Therefore, the National Assembly should think about the people that voted them to power and approve the foreign loan without further delay. It is important to note that in a period of recession like this, the best way to pull over is by way of reflating the economy through massive investment in infrastructure which will ultimately generate employment. It is in this light that l urge the federal government to evolve credible partnership with organized private sector to tackle the infrastructure gap with a view to calibrating the economy. The foreign loan should be invested in the following capital projects:

1.    Construction and rehabilitation of all federal government roads in all geo-political zones without discrimination.

2.    Construction of network of interstates standard gauge rail lines with modern technology for fast moving passengers and cargo trains.

3.    Develop a micro grid in major industrial zones across the nation to leapfrog a productive economy

4.    Establish a National Farm Camp with basic amenities where the displaced persons can be accommodated and fully engaged in faming for commercial use to be managed by Ministry of Agriculture.

5.    Revive the Ajaokuta steel rolling mill and Delta Steel Company because the steel companies are needed to aid the massive construction of roads, bridges and rail lines.

But where the foreign loan may not be enough to achieve the listed projects, the federal government can partner with private investors vide Public Private Partnership (PPP) using suitable models.

·      Concluded

 

DAC CHUKWURAH