August 09, (THEWILL)
By Kenechukwu Aguolu
Nigeria, known for its abundant resources and economic potential, has for some decades been faced with numerous economic challenges that have defied all previously proposed solutions. However, to the delight of some of us, on your assumption of power on May 29, 2023, you decided to do things differently by making bold economic policy decisions to revive Nigeria’s ailing economy. Mr. President, you are a visionary, courageous, and resilient leader. However, Mr President, you are humbly invited to note that even though the economic indices show that your policy decisions have started yielding results, they have yet to impact the common man; neither have your various intervention programmes. There seems to be a disconnect between policy announcements and implementation. I respectfully wish to make the following observations:
Mr. President, optimising the country’s oil production and diversifying the economy are critical areas and I believe your administration is giving the required attention. Sectors such as mining, agriculture, and tourism, which present significant economic opportunities, remain largely untapped. Your administration has done well to ramp up oil production to 1.61 million barrels per day, with an increase expected in the coming months.
Mr. President, Nigeria has a significant infrastructure deficit that hampers meaningful economic development. For example, the lack of adequate power increases the cost of business, causing companies to lose their competitive edge. I was indeed glad when you brought to our awareness during your recent address that your administration had embarked on major infrastructure projects across the country and was working to complete inherited projects critical to our economic prosperity, including roads, bridges, railways, power, and oil and gas developments.
Mr. President, entrepreneurship is a key enabler for advancing any country’s economy. Therefore, the Digital and Creative Enterprises (IDiCE), nano-grants, micro and small business single-digit interest loans, and single-digit loans to boost manufacturing output and stimulate growth, which your administration introduced, are very beneficial in this regard. The recapitalising of deposit money banks will enhance their ability to support economic development.
Mr. President, appropriate remuneration of workers promotes productivity, innovation, and reduces brain drain. Nigeria has experienced a mass exodus of skilled professionals in recent years. Your administration’s approval and signing into law of the new national minimum wage of seventy thousand naira is commendable. It should be implemented and enforced promptly.
Mr. President, over the years, many African countries have emphasised natural resources over human capital development. However, investing in education is critical for sustainable economic growth and global competitiveness. Your administration has done well by introducing the Skill-Up Artisans Programme (SUPA), the Nigerian Youth Academy (NIYA), and the National Youth Talent Export Programme (NATEP) programmes, however, more investment is needed in the nation’s educational system, and rejig of the curriculum is also necessary.
Mr. President, despite the savings from removing fuel subsidies and adopting a floating exchange rate for the naira, Nigeria still faces significant financial challenges primarily due to the substantial debt servicing. The reduction in the country’s debt servicing from 97% to 68% in the last 13 months is remarkable. Nevertheless, in order to improve the government’s ability to finance crucial development projects that could stimulate economic growth and improve societal well-being, it may be wise for the government to pursue aggressive strategies for debt relief or restructuring.
Mr. President, be assured that many Nigerians believe in your renewed hope agenda and are encouraged by the achievements your government has made within a short time in office. However, it would be gratifying to see the timely implementation of policy programmes; a monitoring and evaluation mechanism can facilitate this. The government should also be more proactive in its various interventions. For example, the government should have been more proactive in dealing with food inflation by suspending tariffs and other import duties for various food items earlier than it did.
Long live President Bola Ahmed Tinubu GCFR. Long live the Federal Republic of Nigeria.
Kenechukwu Aguolu
