How ‘stubbornness’ can help FG achieve its economic plan – Experts

Stakeholders at the second edition of the Bullion Lecture organised by Centre for Financial Journalism in Lagos have said that the Federal Government needed to adopt ‘stubbornness’ as a policy, to achieve its economic plan, particularly the Economic Recovery and Growth Plan rolled out recently by the Muhammadu Buhari administration.

The views were set off by the lead paper presented at the event by Professor Olu Ajakaiye, executive chairman, African Centre for Shared Development Capacity Building (ACSDCB), Ibadan.

In his lecture titled, ‘Nigeria’s Economic Recovery and Growth Plan: Options for Low Cost Financing of the Programmes’, Professor Ajakaiye, who was jocularly referred to, by the Master of Ceremony, Ken Ugbechie, as “the grandpa of professors”, highlighted efforts by successive administrations at economic recovery and growth.

The erudite professor noted that Section 16 (2a) of the 1999 Constitution (as amended) empowers government to take necessary actions towards economic growth.

The state shall direct its policy toward ensuring the promotion of a planned and balanced economic development, the Constitution stated.

The lecturer however, lamented that all the efforts in the past amounted to a pipe dream as they were not implemented “primarily because they lacked well-considered government investment programmes necessary for strong plan-budget link. As a result, the capital budgets of the Federal Government could not be linked with a non-existent government investment programme of the plans- a case of putting something on nothing”.

Expressing the optimism that the recently launched Economic Recovery and Growth Plan (ERGP) would not go the way of others before it, the Professor said: “There are indications that the recently launched ERGP- 2017-2020 will be accompanied by a Federal Government investment programmes, raising the prospects of a strong plan-budget link, a pre-requisite for an orderly effective and efficient plan implementation. It is hoped that the state governments as well as private sector operators will be guided by the Federal Government Investment Programme (FGIP) of the plan in their investment plans.”

Warning government against plunging the country into a fresh round of slavery by way of external debt in an effort to finance the project, Ajakaiye, who currently serves on the Economic Advisory Group of the Federal Government, said: “It is also important for the government to be mindful of the dangers of another round of external debt overhang in the future”.

Spelling out the options for low-cost financing of the programmes, he stressed the need to broaden the tax base and improve the tax administration capacity and processes in order to mobilise additional non-oil revenue to support the various programmes and activities aimed at structural transformation of the economy envisaged in the ERGP.

According to him, the Federal Government should consider using the stock market to privatise commercially viable national assets.

He said: “Government should list all of its commercial enterprises on the stock exchange (SE). This way, government portfolio can be divested to the general public, including foreign investors and avoid the controversial and sometimes questionable privatisation arrangements. In that case, government divestment can be instrumental in mobilising financial resources to support worthy development activities, including infrastructure projects.”
“Clearly, the major attraction for Nigeria is the oil industry making it imperative to ensure peace and stability in Niger Delta region if the projected annual foreign direct investment flow of around N970 billion is to be realised,” he said.

He emphasised that Nigeria is experiencing stagflation, which is marked by high inflation, low employment and negative growth, which makes it necessary for government to pursue low cost measures to financing the multi-trillion naira investments envisaged in the ERGP.

Biodun Adedipe, founder of B.Adedipe Associates Limited, and a lead discussant at the event, disagreed with the assumption that there had not been plans in Nigeria, saying, “There are statements that we have not had plans in Nigeria, but there have always been plans, but the problem have always been lack of execution, and inconsistency.”

Urging the Federal Government to be “stubborn” to outside influence that could derail the plan, Adedipe, who holds a PhD in Economics with specialisation in Corporate Finance, said: “There are many people outside the country that could stand against some of our plans, but we must be stubborn to achieve our aim.”

Citing instances of some countries that rejected some so-called expert advice of some global financial institutions and went ahead with their plans which launched them into an enviable position they occupy today, he noted that Nigeria’s penchant for swallowing hook, line and sinker outsiders’ advice has done the country more harm than good.

“If we are persuaded that we must pursue a policy, no matter whatever anybody outside the country says, we must not lose sight of that policy,” he further said.

Amplifying the point made by Ambassador Stanislas Kamanzi, Rwandan High Commissioner to Nigeria, who was a special guest at the event, on the role microfinance banks play in the economy of his country, Adedipe said: “We started microfinance in 2005, how well are we doing in that? But we must look at what Rwanda did with microfinance. The

Central Bank of Nigeria (CBN) can look at it with a view to reviewing the framework of microfinance banks and also learn from the Rwandan model on how the Nigerian MFBs could play a developmental role.”

Ibim Semenitari, a former acting managing director of the Niger Delta Development Commission (NDDC) and CEO/publisher of The Business Eye (Business news magazine), who was also a discussant, urged government to be consistent in the implementation of the programmes.

Semenitari challenged players in the private sector to show interest by identifying with government programmes and the need for them to see themselves as partners in progress with government.

Listing some factors that could aid the realisation of government’s programmes, she said: “There must be transparency on the part of government and all its agencies; the elite must show interest to the point of insisting that the right things must be done; there must be a justice sector that guarantees transparency and fairness; there must be strong institutions that guarantee the actualisation of the plans, and matter of security is something we cannot wish away.”

Uju Ogubunka, CEO, Corporate Skills Bridge Ltd, who stood in for the chairman of the day, Kyari Bukar, chairman of the day, pointed out that there is the need for sustainability of the programmes “after recovering and achieving growth.”

According to him, “Even if all the growth had been achieved, and there is no sustainability, it would amount to nothing. It is good that government has become more serious with planning, we must also put necessary things in place to sustain whatever growth that would be achieved.”

Funke Egbemode, president of Nigerian Guild of Editors, in her goodwill message, urged government to ensure that the ERGP would not go the way of others before it. She noted that proper planning had always being the problem of Nigerian governments.

“It is believed that our past has always been better than where we are today. What it means is that we never make (proper) plans for tomorrow. Lack of (proper) planning has kept us down for years,” Egbemode said.