The PATH to sustainable economic development in Nigeria

BR Fashola: The visioner

The PATH (acronym for Power, Agriculture, Transportation, Housing) is an economic model adopted by the administration of Governor Babatunde Raji Fashola of Lagos State. Governor Fashola collaborated very closely with the Organized Private Sector (OPS) in the state. Early in his administration, he established several innovative measures to facilitate interaction between the state government and the private sector. This included regular parleys between both sides. The commissioners and heads of relevant ministries, departments and agencies of the state government were regular participants at OPS functions. In turn, most of the state’s MDAs also organized meetings and conferences with their OPS constituencies. Governor Fashola specifically used the Ministry of Commerce and Industry as the focal point of the state government’s liaison with the private sector. During the latter half of Governor Fashola’s tenure, that ministry was lucky to have Sola Oworu at its helm. Oworu brought diligence and finesse to her representation of the governor in her interaction with captains of industry.

The quarterly Corporate Assembly, officially tagged “BRF meets Business” and unofficially tagged “BRF means Business”, was one of the innovations of the Fashola government. This forum was usually hosted by the governor himself and had in attendance captains of industry and other top managers of the private sector. The government usually gave a report card of its activities in areas of concern and updates on specific tasks and assignments carried over from the previous meeting. Barring protocol, it was usually a frank exchange between participants. As most of the relevant government operatives were usually on hand to support the governor, it was oftentimes possible to discuss and thrash out issues arising between the policymakers, implementors and industry practitioners. Notwithstanding, there are still many unresolved issues and areas of discord between the state government and the OPS. Among the most nagging issues are multiple taxation and the state MDAs’ penchant for seeing local businesses as a source of revenue to meet their so-called IGR targets. There is also a need for better delineation of jurisdiction between the state government and the various local government authorities.

The OPS, on its own part, has been very enthusiastic and supportive of Governor Fashola’s programmes because it is widely perceived that the governor has a clearer understanding, than most other public administrators, of the role of the private sector as a vector of sustainable economic development. Furthermore, Lagos State has always had the benefit of having an executive council that boasts leading professionals and technocrats in the various sectors of the economy. After all, Lagos is the centre of excellence (Eko o ni baje!).

This is the environment, under Governor Fashola, that threw up PATH as a template and compass for the economic development of Lagos State. Credit must go to Governor Fashola and his team for their incisive, enlightened and dogged intellectual focus. The dynamics of PATH’s sectoral components presents a synergy that impacts the economy broadly. PATH, by its nature, touches and affects virtually every sector and segment of the business community. Furthermore, its success demands close collaboration between the government and the private sector.

The driving spirit of PATH seeks to achieve sustainable development of the state. For these reasons, I am very enthusiastic in recommending the continuation of PATH, and related development initiatives, to the incoming administration of Lagos State. PATH could also prove to be a decisive template for national development if the Federal Government chooses to faithfully commit its political will to the well-being of Nigerians. While the quest at the centre to provide constant nationwide power supply has remained a very costly mirage, the Federal Government appears to have made some progress with agricultural development.

Power

For the past three decades, the private sector has been advocating for government to single-mindedly concentrate on the provision of power as the basic catalyst for industrial development. There is no doubt whatsoever that the constant availability of power would benefit all strata of industry, from micro to large, resulting in a huge multiplier effect on the economy and moderation of the cost of living, goods and services. This would lead to better quality of life. Not minding the severe shortcomings of the Federal Government, Lagos State remains the pacesetter in the independent power (IPP) option. The state has also shown great interest in the deployment of renewable energy, especially solar photovoltaics, as a critical component of a more realistic energy mix for contemporary times. In order to bridge the yawning gap between power supply and demand, the Lagos State government continues to promote establishment of more IPP projects in the state. Complemented by an ambitious state-wide street-lighting project, there is now more power for a wide array of state infrastructure and public institutions such as schools and hospitals. The 24-hour economy touted by the state government has become a reality with many players, particularly those at the lower end, experiencing improved economic activity.

Agriculture

Recent concerted effort to revive agricultural development in Nigeria is a very critical step to revive the Nigerian economy and achieve sustainable development. Apart from its obvious contribution to the attainment of food security, the agriculture value chain holds tremendous potential for wide-ranging economic benefits. For example, the employment potential of agricultural activities, especially farming, should be thrust into the psyche of Nigerian youth. With some reorientation and social re-engineering, farming could be situated as an honourable and profitable vocation. Going up the value chain, the full potential of agriculture-based cottage, small and medium industry should also be exploited. Increased local agricultural output will reduce dependence on food imports, a critical economic imperative at this time. Again, the Lagos State government has taken the lead with several farming and agric-support initiatives. The state government has taken giant strides by initiating various programmes and projects to create a more conducive and enabled environment for civil, especially youth, participation in the agricultural sector.

Transportation

The Lagos State government obviously realizes the vitality of an effective transportation system to facilitate movement of people, goods and services throughout the state. Such dynamism promotes a veritable impact on economic development. In addition to the construction of road networks and the widely acclaimed success of the BRT bus system, the state is also pursuing ambitious programmes to increase exploitation of the state’s abundant waterways. The almost-completed rail line running from Orile to Badagry and other planned routes in the rail network would significantly enhance the state’s economy through the maturity of a multimodal transport system. This would help the populace to realize the full benefit of an improved economic paradigm.

Housing

Housing is a highly favoured component of the programme because it provides much-needed infrastructure for the social well-being of the people. Furthermore, adding to the stock of housing, as the state government has been doing, leads to the provision of much-needed shelter, while also creating pressure to force the cost of provision down through enhanced supply.  Through its home-ownership scheme, the Lagos State government appears to be bridging the affordability gap for average citizens. Meanwhile, commercial real estate development has continued to blossom in highbrow areas.  Aside from adding to stock, the housing sector offers substantial employment potential through the many skilled and unskilled labour opportunities attendant to typical construction activities. There is need for reorientation, particularly of the youth, to promote vocational skills as a viable and respectable alternative to white collar jobs. Once they realize the economic benefits of the sector, it won’t be so hard to convince them. We need to recapture this big employment opportunity from the itinerant foreign workers who currently dominate the sector.

Synergy

No doubt, there are several other sectors of the economy needing dire attention to spur economic development. But basic economic experience has shown that it is not practicable or effective to concentrate on too many sectors at the same time, particularly when resources are limited. Policy choices should be guided by available resources and the stage of development a particular economy finds itself. PATH prioritizes the basics of modern economic development and the hierarchy of human needs. It seeks to guarantee the citizenry food, shelter, employment, and a dynamic economic system to operate in. It may take some time, but consistent pursuit of these economic objectives would eventually yield the desired benefits. PATH is highly recommended because it depends on the public sector more for policy direction, while depending on the private sector for investment and implementation.

Each of the PATH components impacts on the other components in a salutary manner, to catalyze economic development and enhance the average citizen’s standard of living. With more job opportunities available, disposable income would be liberalized. More goods, particularly food, and services would be available and in circulation. If you ask me, improvement in the quality of life and the prosperity of the average citizen is the true index of a nation’s economic development.

Shex Ladipo