Nigeria’s Vice President Yemi Osinbajo has said that the Economic Sustainability Plan (ESP) with a stimulus package of N2.3 trillion will give fillip to the economy across various sectors.
Speaking at a presidential dialogue organised by the Lagos Chamber of Commerce and Industry (LCCI) at the weekend via Zoom, Osinbajo said the stimulus package amounting to 1.5 percent of the Gross Domestic Product (GDP) is replete with opportunities for micro, small and medium scale enterprises (MSMEs) to expand their activities in manufacturing and local production and to participate in supply chain activities across various industrial and service sectors.
Osinbajo explained that as broad-band facilities are vital in positioning Nigeria to take advantage of cutting-edge developments in robotics, 3-D manufacturing, artificial intelligence and smart devices, the ESP had paid attention to total national broadband coverage to revivify the economy.
“Our aim is to continue to improve our national ranking in the World Bank Doing Business Index ranking to below 100 in the coming years,” he said, stressing that arbitrary assessments by government agencies, inspections and intrusions often for contrived reasons must stop.
Nigeria moved 15 places to 131 in World Bank Doing Business ranking, but challenges of poor infrastructure, multiple taxes and corruption still hurt businesses.
Niyi Adebayo, minister for Industry, Trade and Investment, said the realities of today’s challenges demands that Nigeria domesticate production under its special economic zones (SEZs), agro-processing zones and other backward integration projects.
He explained that promoting the digital economy is no longer an option, in the light of its capacity for growth, job creation, and in mitigating the impact of the COVID-19 pandemic on other sectors.
He disclosed that the Presidential Enabling Business Environment Council (PEBEC) has successfully implemented over 150 reforms to make business easier MSMEs, which account for 90 percent of registered businesses in Nigeria and contribute nearly 50 percent of the Country’s Gross Domestic Product (GDP).
However, chief and senior executives of corporate bodies, in their responses, canvassed competitive and friendlier business environment to enable them create jobs and revive the slowing economy.
Tunji Oyebanji, CEO of 11 plc, a major player in the oil and gas industry, stressed the need for an open and transparent foreign exchange access for petroleum products, canvassing full deregulation of the petroleum sector.
Alan Sinfield, CEO of 9Mobile, commended the Federal Government on the recently launched National Broadband Plan, and some states for reducing Right of Way (RoW) fees. He said the steps would help telecoms players to deploy their fibre infrastructures to grow the economy, especially in the light of the pandemic.
Adenike Ogunlesi, CEO of Ruff ‘n’ Tumble, an indigenous lifestyle brand, urged the Federal Government to support the garment industry to enable them create more jobs and earn foreign exchange. She called for policies that would enable them have access to sophisticated machines and power, saying, “There is no time to industrialise Nigeria than now.”
Soromidayo George, director, corporate affairs and sustainable business at Unilever plc, called for sustainable ease of doing business in the country and the need for the government to closely re-examine the impact of the closure of Nigeria-Benin border, while supporting manufacturers sourcing inputs locally.
On her part, Dupe Olusola, CEO of Transcorp Hotels, said the tourism industry needs some stimulus package to stay afloat.
Toki Mabogunje, president of the LCCI, said the slow pace of reforms in the oil and gas sector, especially the fact that the Petroleum Industry Bill could not make it through the eighth National Assembly, is a cause for worry. “Failure of the Nigerian Customs Service to adhere to the Executive Order which forbids Customs checkpoints around the ports and within given geographical delimitations in the country is also a cause for concern,” she said.
She further said that the closure of Nigeria-Benin land border has enormous implications for cross-border economic activities around the country. “The indications are now that the closure is indefinite. While we share the concern of government on issues of security and smuggling, we believe that the indefinite closure of land borders is not the solution to the problem,” she said.
She said Nigeria must get itself ready for the pressure of competition inherent in the African Continental Free Trade Area (AfCFTA) economic integration agenda.
