Penultimate Monday in Lagos, as part of pre-inauguration activities, President Goodluck Jonathon engaged the business community to define a path for Nigeria’s economy. The meeting was aimed at developing: value chains in agriculture, solid minerals, manufacturing, oil and gas, efficient power system, efficient transport, human resources and research among others.
For throwing open Nigeria’s borders to all imports like toothpick, textiles, rice, and extending the age-limit for importable automobiles from eight to 15 years many had asked what business sense has President Goodluck Jonathan to be able to effectively steer the economic ship of Nigeria.
Another decision that fell flat among manufacturers was the award of N.1 billion contracts to a British firm to supply plastic waste bins for Abuja alone. The federal government had argued that local plastic manufacturers lacked the capacity to manufacture qualitatve waste bins and the specification required for Abuja. This claim was dismissed outright by manufacturers.
The venue was Eko Hotel and Suites, Lagos. Goodluck’s mission was clear and unambiguous – what do I do with Nigeria’s economy? How can government partner with the private sector to deliver a prosperous economy? How do we drive vision 20:2020 to its logical conclusion? His message to the business community was clear and unambiguous – let’s define and partner to grow Nigeria’s economy in the next four years.
Reading Jonathan’s lips
Based on our correspondent’s observation of his gesticulations, his commitment seemed to resonate passionately within as he spoke. Passion isn’t too common a phenomenon with Mr. President during speeches, as commentators have always labelled him unnatural while making public speeches.
But his thoughts, before he delivered his prepared text showed some commitment to the economy. For instance, the president announced a new five-year tariff regime that will be consistent to enable businesses plans on a sustainable long term basis. He will also announce a ban on sugar and rice imports in 2015. Even though industry watchers argue that 2015 is too far, based on the gaps in infrastructure and capacity, it may just be the most realistic time frame to work on.
He made it clear he will not want lamentations from the business community but the way forward. How he can separate lamentations from the way forward remains a matter of conjecture as the lamentations flowed uncontrollably during the close-door sessions that saw the media driven out, our correspondent later gathered from participants who would not want their names mentioned. These lamentations were not far removed from the traditional complaints of government’s inconsistent policies, decaying infrastructure, inefficient transport system, collapsing power supply, decaying educational system and poverty.
Call for transformation
Jonathan spoke on the theme “a call for transformative partners” to the business community and members of the Organized Private Sector (OPS) offering a five-year tariff regime to terminate 2016 when, if necessary, another review will be made. “We must come up with a tariff structure that will not be altered till 2016 so businesses can plan long term,” he emphasised.
He warned that some of the impending reforms may affect the business community but government is also willing to make compromises where necessary.
Jonathan spoke of an economic team to be constituted which he will chair. The economic team will comprise public and private sector players and will meetfortnightly to review economic performance of the nation.
Retreat shortly after inauguration
Jonathan announced that based on the recommendations of the organised private sector, he will hold a retreat with his economic team shortly after his inauguration and will evolve concrete programmes plus time lines and deliverables in the next three months on all key economic sectors – power, agriculture, manufacturing, security, health, infrastructure and education.
He announced an impending comprehensive review of the waivers and concessions currently granted importers, saying they are bleeding the economy. He told importers that thenceforth, only businesses developing value-chains, building infrastructure, and expanding domestic infrastructure would be considered for concessions and waivers.
“The review has become necessary because subsidies and waivers have had many adverse effects on the economy: Depletion of foreign reserves [because it promotes imports], undermining of competition and local production as well as exporting jobs” the president noted. By 2015, Nigeria has no business importing rice or fertilizers and will be able produce sugar, he said.
Tackling security challenge
On security he said, Nigeria’s security challenges will greatly diminish if Nigeria can create decent jobs for the productive population.
Before breaking into technical session, the President of the Manufacturers Association of Nigeria (MAN), Mr Kola Jamodu spoke on behalf of the business community. He pledged the business community’s support but quickly reminded the president that Nigerians will hold him to account for his campaign promises – industrial growth, social and economic development. He cautioned the president against waste.
The Special Adviser to the United Nations Secretary General, Prof Jeffery Sachs advised the federal government to reduce its dependence on road transportation, saying adequate efforts should be concentrated towards the development of rail transport system and other infrastructure.
Pillars of Nigeria’s greatness
Sachs spoke on four pillars on which the growth prospects should be anchored. They include: revolutionizing the agric sector (the agric prospects remain largely unfulfilled because of crude forms of farming in Nigeria in this modern age); integrated urban development (to include job creation through heavy manufacturing activities, water projects, electricity sustainability, sanitation, education and health care delivery); maternal health and family planning (Nigeria according to UN has 158 million citizens now, by 2030 it will be 258, by 2050 it will be 390 and by 2100, it will be a staggering 730 million. This population would be disastrous if proper provision is not made to cater for it; and Climate change. Climate change is real and its effects devastating, thus Nigeria must take climate change into account as it develops.
He advised the president to factor his planning in the annual budgets. .
At least 300 participants from the business community spanning manufacturing, banking, aviation, hospitality industry, government and other sectors were present. But conspicuously missing were insurance sector and the media industry. This underscores government’s lack of attention to the insurance subsector. One would have loved to see media representatives on the working committees constituted so the industry can have first hand information on the direction of the economy.
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Continued here:
Day businessmen gave Jonathan priority areas