•President Buhari
Stakeholders in the economy yesterday made a strong case for the diversification of the economy by the federal government away from the petroleum monoculture.
They hailed President Muhammadu Buhari’s war against corruption,stressing that no economic development can take place with wide and galloping corruption, and asked Nigerians to back government’s effort to curb the vice.
In a 13-point communiqué issued at the end of the two-day First National Economic Forum organised by The Nation in Lagos themed ‘National Economy: The way forward,” deliberation, the stakeholders said Nigeria must now brace herself for the post-oil era, and that means putting in place tough policy measures to diversify the economy away from the petroleum monoculture, adding that even while exiting oil as Nigeria’s main foreign exchange (forex) earner, the country must add value.
It must stop just extracting raw crude but do local refining before exportation. That way, Nigeria can earn even more forex from her petroleum resources, they said.
Citing Vice President Yemi Osinbajo’s detailed presentation at the forum opening, the stakeholders were pleased that the Federal Government had what appeared a serious and sustainable policy on local refineries.
“We can only press the government to intensify efforts to implement the policy, so that our country can benefit from the whole oil value chain: upstream, midstream and downstream, adding that they look forward to the new Oil and Gas Policy, which the Vice President announced was expected mid-year,” they said.
“Post-oil era, Nigeria must take full advantage of agriculture. Again, it is re-assuring the Buhari Presidency, according to the Vice President, has adopted timelines in self-sufficiency in key staples like rice, wheat, maize, among others. Our economic rebirth must birth with food sufficiency and security. A serious focus on agriculture should also provide thousands of jobs for our jobless youths.
“Agriculture should help re-launch Nigeria’s industrialization, through agricultural processing. So, there should be deliberate government policies to encourage agro-allied industries to create jobs for our teeming youths.”
The communiqué noted that since infrastructure – physical and social – would play a key role in Nigeria’s economy rebirth,roads, rails and power must receive renewed and prompt attention.
In this regard they said the Vice President’s presentation was reassuring, noting that the Buhari administration has solid infrastructure plans in this budget year: completing already started national road networks, like Lagos-Ibadan, Sagamu-Benin, as well as starting work on the Lagos-Kano, and new coastal Lagos-Calabar standard gauge rail projects. Also noteworthy, in social infrastructure, is the Administration’s bursary to support science and technology education in tertiary institutions.
Given the crucial place of electricity in industrialization and even mechanized and modernized agriculture, the Federal Government should put in place policies that ensure seamless investment to light up the country and power the economy,they said.
To maximize infrastructure vis-a-viz industralisation, the communiqué pushed for industrial hubs, well serviced with roads, power, water, among others. That would cut production costs and make Nigerian goods cheaper and more competitive, particularly the products of the micro, small and medium enterprises (MSMEs). For mass job creation, Nigeria has to rely on MSMEs. Nigeria has no less than 37 million of MSMEs and these small-scale businesses have the capacity to employ many Nigerians, it added.
Speaking at the forum,the Director-General, Manufacturers Association of Nigeria, Remi Ogunmefun, advised the Federal Government against signing any trade protocol that might de-industrialise the country and brew mass poverty. He particularly cited the proposed EU-ECOWAS protocol. He said agro-allied manufacturing should also focus, as market-entry strategy, on adding value to local crops, like cashew and tomato, by processing them into finished products, for the local market, as well as the export market to earn foreign exchange.
Former Nigerian High Commissioner to Australia, Ambassador Ayo Olukanni said apart from agriculture and re-industrialization, mining and solid minerals should be made a deliberate growth area in diversifying the Nigerian economy. He cited the Australia example, a country that grosses millions of dollars yearly from its mining industry. As in agriculture, Nigeria should reclaim its old glory in solid minerals: coal, tin, iron ore, gold, among others, he added.
On taxation, founding President of the Association of National Accountants of Nigeria (ANAN) Omooba Olumuyiwa Sosanya said Nigeria has not really realized her tax potential, simply because oil money has been there for free spending. But now that oil is on its way out, it is time to maximize taxation.
He suggested a widening of the tax net, and not necessarily increase in taxation. So, the government should decentralize tax collection infrastructure and focus more on non-oil taxes. Of especial focus should be VATting the huge informal sector, from which Nigeria can generate billions of Naira as yearly revenue.
Governors who spoke at the forum called for inter-state and regional economic cooperation. A good case is the Lagos-Kebbi rice deal. Kebbi will grow and Lagos will mill, which is a win-win situation for both states. The Imo Governor, Rochas Okocha, pushed for devolution of powers, especially in areas of agriculture, security and education. That way, the Federal Government will leave local business to states and their local governments, and concentrate on national and international issues. He also called for massive investment in artisan schools.
For all these policies and innovations to succeed, however, Nigeria must re-jig its operating political structure. There is the imperative to re-federalize Nigeria along strong economic lines. With that, the hub of productivity would be the states, in contrast to the position now, where states go to Abuja for monthly doles. That has basically underdeveloped and impoverished everyone. The Forum called on the National Assembly to ready itself to pass the requisite re-federalizing legislations.
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