The Nation Newspaper

Tag: economic prosperity

  • Rely on construction sector for economic prosperity, Fed Govt told

    Quantity surveyors have asked the Federal Government to exploit the construction industry in order to make a meaningful impact in the administration of the country.

    They argue that the construction industry plays a vital role in the economy, and its activities are major drivers of national socio-economic development goals of providing shelter, infrastructure and employment.

    AQt a two-day workshop organised by the Nigerian Institution of Quantity Surveyors (NIQS), on the theme: “Project Monitoring and Reporting Services for Financial Institutions/Third Party Funded or Sponsored Project Developments,” in Abuja, NIQS President Obafemi Onashile insisted that the Federal Government’s most pressing and major task was to create new leadership initiatives for a fast double-digit growth of the economy.

    He observed that the construction industry was the second industry (after the agricultural industry) with potential for the greatest impact on the economy of many nations.

    Onashile noted that, in other climes, the construction industry plays a pivotal role in infrastructure delivery, massive employment (especially the youth), domestic manufacturing through many cottage industries for producing glass, ceramics, iron billets and rods, aluminium sheets and profiles, paints, plywoods and timber profiles that can be consumed locally or exported.

    “With a booming construction industry, other construction resources such as construction plants and the vehicle will become locally assembled/made and thereby oiling the national economy for exponential performance,” he said.

    He said policies and business plans must be all-encompassing, involving politicians, civil servants, researchers in the academia, private sector drivers (chambers of commerce, industries, professional institutions and trade unions) and the end-users represented by non-governmental organisations (NGOs) and civil societies.

    According to him, the practice of the past of relying on international management consultants and multilateral funding bodies such the world bank, to set up government policies for Nigeria and expect the MDA’S to simply drive such “externally crafted” policies after a conducted two- day management retreat has failed us woefully due to the

    disconnect between the policy crafters and the expected drivers’ as the drivers had no input in the policies.

    To achieve a booming construction industry, the quantity surveyors advised the government to implement a social housing programme, which will provide homes for the vulnerable civil service employees, including the men and women in uniformed services.

    “Apart from acting as a responsive employer looking after the well-being of its employees, this recommended action would also help curb corruption tendencies in government. A combination of different ways both through fiscal and monetary policies (but more of fiscal policies) can be utilized to accomplish this,” Onoshile said.

    The institute also called for the re-vitalisation and re-orientation of the Federal Housing Authority (FHA) so that it will be private sector driven rather than typical civil service leadership to tackle the issue of urbanization.

    He said: “Brand new cities, as well as regeneration of some existing and mature cities, must be immediately planned and implemented by the Federal Government to consciously direct the course of growth of the environment and the standard of living of the citizens.  Actions to improve transportation should be another priority. A combined rail and road infrastructure development focus is vital for long-term sustainable development.”

    NIQS President further called for an urgent overhaul of the Infrastructure Concession Regulatory Commission (ICRC) to make it more private sector- driven and ensure commercial-like transactions.

    “There is the need to strengthen the PPP Schemes by fine-tuning the laws (the Act) to remove the loopholes that the private sector has been exploiting and frustrating the policy.

    The PPP market needs to be further developed re-orientated and expanded to attract a greater number and serious-minded investors both foreign and domestic.

    On the workshop, he stated that NIQS has part of its focus on promoting reforms has therefore deemed it necessary to prepare and equip its members for that needed special expertise of protecting development investments such as project monitoring that will ensure the successful and enviable growth of the construction industry that is very much desired.

    His words: “Project monitoring service is recommended for project funders undertaking any sizeable project Investment; however, it is important for projects with a value over $3 million and absolutely essential for loan funded or grant-funded, public-funded projects of value in excess of $30million.

    “Whilst these services are World Bank recognized and recommended. The CBN adopted and directed commercial banks to utilize independent project monitoring consultants different from internal bank staff when undertaking project-financing transactions in order to ensure the safety of  not only the bank  but customer  fund.”

    He listed benefits of project monitoring services to include checkmating high cost of development projects, eliminating poorly designed projects that may threaten the investment, reducing spate of abandoned projects, ensuring projects are fit for purpose and building professionals are utilised in construction and are alive to their duties by being fairly remunerated. “Project monitoring seeks to avoid acrimonious and adversarial relationships between project designers and contractors and therefore prevent collusion and corruption,” he added.

  • ‘Infrastructure is driving force for economic prosperity’

    Minister of Power, Works and Housing, Mr Babatunde Fashola yesterday described infrastructure as the driving force for economic prosperity of nations.

    According to him, the nation’s backwardness can be attributed to past “wrong choices’’.

    Fashola spoke in Lagos at the City Hall during the BRF Gabfest, tagged BRF2GABFEST.

    The theme was: “Where Are the Jobs?’’

    The minister said infrastructure defined the quality of development, citing the United States, United Kingdom, United Arab Emirates (UAE) and China as examples of some countries whose economies were infrastructure-driven

    President Muhammadu Buhari-led administration, he said, is focusing on infrastructure development needed for rapid economic growth and tackling unemployment.

    Fashola reiterated that decay in infrastructure and some of the backwardness in the development of the nation were as “a result of some bad choices’’ leaders made in the past.

    Giving a brief history of the nation, which according to him, is repeating itself, he said the nation’s airports and sea ports which used to be the best in the 70s and 80s have depreciated due to long years of neglect.

    He lamented that the air and sea ports, roads, rail and other infrastructure were not improved upon and became overstretched due to years of neglect.

    The present administration, he said, has recorded achievements in the area of job creation across Nigeria due to the current infrastructure development drive of the Federal Government.

    “It shows that if you are developing infrastructure, you are tackling issues of job creation. Roads are currently being constructed in 14 universities in the country, as well as in every local government in the nation,” he said.

    He also listed other ongoing and completed roads, power and housing projects in the country which had created millions of jobs and were still creating more for those in the construction value chain.

    Fashola said the economy was shifting from paper qualification to practical skills exhibition.

    He urged Nigerians to take advantage of the diversification of the economic opportunities provided by the Buhari administration to make impacts in agriculture and other sectors.

    The minister also called for some control of the nation’s population, which if left unchecked, is going to slow development.

  • AGA presidential aspirant promises economic prosperity

    All Grassroots Alliance (AGA) presidential aspirant Chuks Nwachuku has unfolded three major programmes he would implement, if elected as president in next year’s poll. He listed them as reintroduction of economic prosperity, addressing political restructuring and national fissures.

    Nwachuku, a lawyer, alleged during his declaration in Lagos that Nigeria’s economic prosperity  was aborted between 1985 and 1986 when the Central Bank of Nigeria (CBN) “developed the ruinous policy of fake, make-believe purchase of our foreign exchange earnings for sale by auction”.

    He argued that the CBN does not purchase any foreign exchange, because it does not pay any naira from for it from its own vaults at a competitive rate. He said: “The Central Bank simply credits the accounts of the federal and state governments with naira that does not exist. It thus creates naira which comes back to chase the few foreign exchange it makes available at its auction sales.

    “I shall reverse this fraud and incompetence. I shall restore order to our lives. Salaries of our workers shall again give them comfortable lives. We shall rebuild our infrastructure; quality shall return to our education; our people shall cease to flee from their land and those who have fled shall return. We shall reclaim our national pride.”

    On political restructuring, Nwachuku promised to adopt approach that would recognise communities and cultures, with the objective of building a strong and mature country with a unifying national identity.

    Nwachukwu added: “My concept of restructuring therefore would focus on ethnic communities as administrative communities with greater responsibility to ensure the welfare of their people. The elite would be given the duty to ensure human advancement in their ethnic communities. It means that we should be heading towards giving more autonomy to our ethnic communities, subject to overriding need to ensure a Nigerian identity and protect economic and cultural migration. Every Nigerian would have a right to decide which community he wishes to belong, irrespective of ancestry.”

    The presidential aspirant vowed to address what he called the disadvantage of the Southeast in the national budget. To this end, he promised to continue and complete the programme of reconciliation, reconstruction and rehabilitation initiated by the Gen. Yakubu Gowon administration after the civil war.

    He said: “The Second Niger Bridge shall be speedily completed; the problem of erosion in the Southeast would be tackled by experts; all failed federal roads in the region would be urgently constructed; the new national rail line will be re-drawn to include the Southeast.

    Nwachuku appealed to members of the public to contribute at least N100 a week towards funding his campaign expenses. He explained that their contributions would guar  antee their commitments towards his victory at the poll, thereby making them shareholders of his government.

     

  • PwC on Edo’s path to economic prosperity

    No country can grow and prosper economically without a favourable environment that enables business to thrive. Indeed, no state can flourish economically and progressively improve the socioeconomic condition of its people if it lacks workable economic policies and business-friendly atmosphere.

    To engender economic prosperity, those who drive the machinery of government must manifestly see to it that they constantly initiate and implement policies that make for the thriving of business and competitiveness, and continually address challenges that may hamper the booming of business even as they beat every path of available opportunities therein. To do otherwise is to stagnate, nurture poverty, and worsen the human condition.

    The foregoing position is a fitting summary of PricewaterhouseCoopers (PwC), findings in a recently conducted study in the area of State-Level Business Environment.

    Entitled “Promoting Economic Prosperity: Analysis of the State-Level Business Environment in Nigeria”, the report provides findings from the State-Level Business Environment Analysis carried out in four different states of Anambra (South-east), Edo (South-south), Ogun (South-west), and Niger (North Central).

    For each of the states, the study reveals that certain positive efforts are already in place and others are being taken to nurture such business-friendly environment that encourages effective competitiveness, motivates investment and boost investors’ confidence and, consequently, realise economic prosperity for the people.

    In the case of Edo State, the study explicitly affirms the fact that the state government demonstrates renewed interest in significantly improving the business environment in the state through workable policies and decisive engagement of the challenges in the business sphere.

    It captures the unembellished and unfeigned reality that the state government has a deep business-oriented consciousness, hence its organised move to improve and build public infrastructure, expand revenue base, improve the capacity of the workforce, and provide incentives that attract investors.

    This is not any surprising when viewed against the backdrop of the fact that Governor Godwin Obaseki is a business-oriented mind with a rich trove of experience in the private sector. It is this background that the man brings to the service of the state as its chief executive officer.

    As the study rightly observes, the Obaseki administration wastes no time in walking the path of economic prosperity for the state. Within three months of taking office, the administration was able to perfect a trade mission to China in order to attract relevant investors to the state.

    As every business-inclined entity is wont to do, the outlined goal of making Edo State an emporium of economic prosperity within the South-south region is being undertaken through a carefully mapped-out plan of institutional reforms, economic revolution, culture and tourism, environmental sustainability, socio-welfare enhancement, and infrastructure development.

    This inclusive governance structure, as the PwC report describes it, is the administration’s way of ensuring that it avoids a one-sided, limiting development culture.

    Similarly, it is worthy of note that the commitment of the Obaseki administration, like its immediate predecessor, to the socioeconomic development of Edo State is not a ruse. In other words, the vision is not a feel-good idea for which the government has no means of actualising it.  As the PwC report asserts, “Edo state has abundant resources to support its prosperity agenda”. The government is keenly aware of this and it is methodically and consistently taking the right step to make judicious use of the resources.

    One of those resources being effectively harnessed for the economic development of the state is in the area of agriculture. The Agripreneur Programme initiated by the government is a worthy example of how it is using available resources to transform the state economically and considerably reduce unemployment.

    “With over 2 million hectares of arable land,” the PwC report notes, “the state is well positioned to enjoy strong expansion in crop production including oil palm, rubber and cassava. Deposits of limestone, marble, gypsum, feldspar and granite among others have also been reported to exist in abundance in the state. The state houses major agro-allied companies in Nigeria including Presco, Okomu Oil and PZ-wilmar with large expanse of oil palm and rubber plantations. The government has begun efforts to increase the agricultural output of the state through the provision of incentives for investors and active partnerships for the development of the agricultural value chain.”

    Additionally, the development of a major seaport is another means through which Edo State under Governor Obaseki is creating a business-favouring environment for the prosperity of the Edo people. The Gelegele Seaport has as its major features an agribusiness development park, marine facilities, an inland port, and supporting infrastructure and facilities.

    Already, since large conglomerates such as BUA and Dangote group consider the state an attractive investment destination, according to PwC, it may yet emerge “as a trade hub for the southern region with significant impact on its prosperity”.

    In the area of revenue, the state government is deeply uncomfortable with the envelop economy that ensures that its biggest source of revenue comes from the monthly statutory federal allocation to states. This disinterest in depending solely on Abuja for big income has inspired a coordinated move towards aggressive improvement in the state’s Internally Generated Revenue (IGR).

    As the report reveals, the state reduced its major source of revenue from monthly allocation from 80% in 2011 to 55% in 2016, adding that “[during the review period,” the state’s IGR “increased by only 5.4% annually, which was below the zonal average annual growth of 8.2%.”

    What this presupposes is that Edo State must intensify and sustain its efforts to expand its income base. More precisely, the government must not at any point renege on its laudable commitment to such initiatives as taxes, land, infrastructure, public-private partnership scheme, and execution of business-friendly policies as practical means of enhancing business environment in the state.

    In order to put an end to this anomaly, the state government has designed a number of ideas, chief among which is the industrialisation park being developed. There is the Ossiomo Industrial park project which is expected to attract close to USD 1 billion in Foreign Direct Investment.

    As the PwC study equally makes clear, the Obaseki administration’s hands are firmly on the plough of development for all-round economic prosperity in the state. It is unswervingly labouring to become a reference point in building a truly business friendly environment.

  • Jonathan: no short cut to economic prosperity

    Jonathan: no short cut to economic prosperity

    President Goodluck Jonathan yesterday urged Nigerians to put in their best in whatever they do because there are no short cuts to economic prosperity.

    The President spoke through Vice President Namadi Sambo at the 13th National Productivity Day celebrations and conferment of the National Productivity Order of Merit Award in Abuja.

    He said: “No matter our calling, it is only through hard work, diligence and discipline that success can be achieved.”

    Jonathan noted that there is need for motivation and favourable working conditions to enable workers improve productivity.

    He said his administration was working assiduously to refocus the nation’s attitude to work to “emphasise the dignity of labour, integrity, honesty, discipline and hard work in the workplace”.

    “We have also resolved to effect new a service reward system to promote productivity, efficiency and excellence.”

    Jonathan said his administration was not only strengthening the National Productivity Centre but will also address its infrastructure deficit through the development of a National Integrated Infrastructure Master Plan (NIIMP).

    He said the Federal Government was diversifying the economy to drive wealth and job creation.

    He said: “Our agenda of transformation is productivity-oriented. Our vision and quest is to bequeath to future generations a better and greater Nigeria under our action. It is by securing higher and better quality output for any given unit of input that we can increase our national wealth and raise the living standards of our people.”

    The President urged the awardees not to rest on their oars, saying individuals and organisations should emulate them by increasing their productivity.

    The Minister of Labour and Productivity, Chief Emeka Wogu, said the National Council on Productivity would soon be inaugurated.

    He urged individuals and organisations to key into the National Productivity Policy by increasing their productivity.

    Mr. George Uriesi, who spoke on behalf of the recipients of the National Productivity Order of Merit Award, expressed gratitude for the recognition.

    He promised that they would not fail the country.

    The 2011/2012 National Productivity Order of Merit Award was conferred on 20 individuals and 10 organisations in recognition of their contributions to national development.

    Since its inception in 1991, 256 individuals and 58 organisations have received the honour.

    This year’s celebrations had the theme: Productivity and Competitiveness: Determinants for Achieving National Transformation.