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Tag: economic woes

  • ‘High demands for foreign goods cause of economic woes’

    ‘High demands for foreign goods cause of economic woes’

    An Ibadan-based cleric and the visioner of Africa Jerusalem Ministry, Prophet Gideon Owoseeni, has said high demands for foreign goods is the cause of Nigeria’s economic woes.

    He said: ‘’As long as Nigerians’ appetite for foreign goods remains unchecked and locally produced goods remain unattractive, the cry for improved socio-economic growth of the country will not yield positive result.’’

    Read Also: ‘Nigeria’s laundry industry can drive economic growth’

    The cleric spoke at the weekend at the unveiling of the spiritual Pool of Bethesda on the church premises.

    He said Nigerians’ attitude towards indigenously-made products discouraged local manufacturers.

    He added that leading economic nations in the world were promoters of locally- made products, with reference to China.

    A member of the National Assembly representing Oyo South Senatorial District, Sharafadeen Alli, described the inauguration of the Pool of Bethesda as not just a physical accomplishment, but also a divine representation of healing, hope and faith.

  • Nigerians, Govs must accept responsibility for economic woes — Varsity VC

    Nigerians, Govs must accept responsibility for economic woes — Varsity VC

    The Vice-Chancellor of Ahman Pategi University, Patigi, Kwara State, Professor Mahfouz Adedimeji has urged Nigerians and Governors to accept responsibility and stop the blame game over economic woes in the country. 

    Adedimeji also stressed the need for Governors and Nigerians to play their part in improving the economy and seek solutions to the current economic hardship. 

    Speaking at the one-year anniversary public lecture of the VC, Professor Olayinka Karim of Fountain University, Osogbo, Osun State, Adedimeji advocated for servant leadership style to tackle the current leadership structure across the country. 

    According to him: “Servant leadership is applicable in Nigeria system and it is possible. It was done before and it can also be done now, it only require courage of character, sacrifice, empathy, discipline and prioritising the needs of Nigerians over and above the needs of those who are in power. 

    Read Also: Ibadan Poly shines at Tetfund creative writing, research event

    “We know the President is making a lot of efforts in recent times and we know that if anything will be good we will experience a certain level of discomfort in the beginning. I want to appeal to our leaders to attend to the need of the people first, it is true that many people are suffering, and our governors must take a bold step to show people that they really care. 

    “I want to urge Nigerians to accept responsibility, we should avoid the blame game, do what you can at your level, everybody is a leader, the concept of leadership is at the doorstep of everybody, before you look at Abuja, look at what is happening in your house, look inward. Nigerians are the one looting palliative, which tell greatly on our characters. Let us think of what we can do and work out solutions. Nigerians should also change themselves before we blame the leaders, they are reflection of the society.”

    Professor Kareem disclosed that she was motivated to pursue her Vice-Chancellorship ambition because of the influence of the likes of Professor Grace Alele-Williams, who was the first female Vice-Chancellor in the country. 

    She added that her passion for service was responsible for her achievements within 12 months in office, pledging to do more in a bid make Fountain University a global brand.

  • ‘Past mistakes responsible for economic woes’

    ‘Past mistakes responsible for economic woes’

    President of the Historical Society of Nigeria (HSN), Prof. Samuel Aghalino, has said for Nigeria to overcome hunger and other issues currently facing it, the country must retrace its steps to the past.

    He said Nigeria has refused to build on colonial and pre-colonial economy, adding that this was responsible for the present economic challenges facing the country.

    Aghalino stated this while presenting a Life Membership Certificate of the Historical Society of Nigeria to the Executive Director of Citizens Advocacy for Social Economic Rights (CASER), Frank Tietie in Abuja.

    He said if leaders are conscious of history, some of the decisions they make in private and public life will be guided accordingly for national integration and harmony.

    He said: “Our problem is that we refuse to utlise our past to better our present. We refuse to go back to history as a means of development. We must go back to history if we must move forward.

    Read Also: Tinubu inherited economic woes – Oyebanji

    “We refused to build on our colonial and pre-colonial economy as a result of that we are in trouble today. We are interested in consuming without production and without production our economy is in trouble. We should look back to history to guide us on how every region developed at their own pace.”

    He further said Tietie deserved the life membership certificate for demonstrating an uncommon capacity to confront the national question with patriotic zeal.

    “I concluded that Tietie may not be speaking from the perspective of stomach infrastructure, he has been speaking from the fact that this nation is great and we must make it great and we must work in unison to make it great. And each time he speaks, I pick out his snippets of historiography and see nuggets of historical wisdom.”

    Tietie said the current food crisis in Nigeria was as a result of political leaders repeating mistakes that grounded the country at different seasons in the past, saying that leaders appear to be ignorant of the country’s history.

  • ‘It is uncharitable to blame Buhari for our economic woes’

    ‘It is uncharitable to blame Buhari for our economic woes’

    Paul Odili is a former media aide to former Delta State Governor Emmanuel Uduaghan. In this interview with Southsouth Regional Editor SHOLA O’NEIL, he speaks on the prospects of the All Progressives Congress (APC) in next year’s elections. 

    Why did you leave the PDP for the APC?

    The PDP lost its way; we could not fit into what the party became, despite doing our best to ensure victory at all levels. Suggestions were received with hostility; we saw a lot of suspicion, and frankly it became completely an unwelcoming place. We were marginalised to a point that if we wanted to continue to contribute to the political development of our people, we needed to find an alternative platform. The APC as a party was open and welcoming and willing to listen to suggestions on how to do things better. We also saw that the APC has a strong desire to do well for our people and the country. The economy is a sore point for Nigerians; they think the APC government’s policies led to the recession I am happy that the economic crisis is gradually receding and we are gradually seeing growth. It is uncharitable to blame President Buhari for the recession. How is he at fault? He came when oil prices were collapsing and oil production was falling at the same time. From $100 to $34 per barrel, 2.3million barrels of oil per day (bpd), to roughly 800,000bpd of production. There was no savings of any sort. No buffer. Foreign reserves had fallen to I think about $24billion, barely enough to ensure we continue to service imports. It is, I say again, uncharitable to blame President Buhari. Have we forgotten that shortly after assuming office many states could not pay salaries and he had to give bailout to states to enable them pay salaries. The Federal Government even before he assumed office was borrowing to pay salaries of federal civil servants. I find it difficult to fault the man. And what was the money used for? Nobody can say definitively. Was it used for infrastructure development? No, if it was, the situation might have being different. I really don’t know how the President can be blamed. Some say he should have acted quicker. In what sense, I am not certain. Here is a country that was importing virtually everything. From rice, palm oil, corn, toothpick and every other consumable and the oil prices that funds those imports were collapsing. What do you expect will happen? Let’s stop deceiving ourselves and listening to useless propaganda. Nigeria’s economy was not a productive one structured to cater for the needs of the people. This man came at a time we were in a hole and even digging ourselves deeper into the hole and he stopped us from further digging and to start filling the hole we were digging. For me, that is even an achievement. President Buhari is a serious minded leader and that is why I support him.

    What’s your assessment of the performance of the past administrations?

    The money was flowing into the coffers and flowing out at the same time. No savings and no strategic national programme and projects to wean us out of crude oil dependence. The result was the oil shock that spiral into economic contraction that caused recession. If refineries were working, perhaps we would not need to spend so much in importing fuel. If electricity supply was stable, industries would be operating at higher efficient level. If the railways system was in place and operating, movement of goods and service would be cheaper and affordable, and we can go on and on. Without these basic national infrastructures the economy was primed to collapse. People say before money was flowing, I agree it was. But was it flowing from any serious productive activity? We know the answer. It was not. We were importing, importing and importing everything under the sun. So, no, there was no plan to ease us off crude oil dependence.

    How would you compare Uduaghan and Okowa’s administrations?

    You cannot compare the two. Obviously, the two administrations have different agendas. The previous administration said its focus was to build an economy less reliant on oil and to invest in sectors that will ensure this happens. The current administration has a different agenda and from all appearances the programmes of the two administrations has not quite complemented each other and the result is that the state is not moving in a definable path. Mark you, each administration is free to prioritise its objectives and so Okowa’s administration can be explained that way. However, compared to the approach by President Buhari who having taken over is going ahead with many projects and programmes he inherited from the previous administration, fine-tuning them as he deems fit, I am not so sure that the current administration in Delta State is doing the same.

  • ‘It is uncharitable to blame Buhari for our economic woes’

    ‘It is uncharitable to blame Buhari for our economic woes’

    Paul Odili is a former media aide to former Delta State Governor Emmanuel Uduaghan. In this interview with Southsouth Regional Editor SHOLA O’NEIL, he speaks on the prospects of the All Progressives Congress (APC) in next year’s elections. 

    Why did you leave the PDP for the APC?

    The PDP lost its way; we could not fit into what the party became, despite doing our best to ensure victory at all levels. Suggestions were received with hostility; we saw a lot of suspicion, and frankly it became completely an unwelcoming place. We were marginalised to a point that if we wanted to continue to contribute to the political development of our people, we needed to find an alternative platform. The APC as a party was open and welcoming and willing to listen to suggestions on how to do things better. We also saw that the APC has a strong desire to do well for our people and the country. The economy is a sore point for Nigerians; they think the APC government’s policies led to the recession I am happy that the economic crisis is gradually receding and we are gradually seeing growth. It is uncharitable to blame President Buhari for the recession. How is he at fault? He came when oil prices were collapsing and oil production was falling at the same time. From $100 to $34 per barrel, 2.3million barrels of oil per day (bpd), to roughly 800,000bpd of production. There was no savings of any sort. No buffer. Foreign reserves had fallen to I think about $24billion, barely enough to ensure we continue to service imports. It is, I say again, uncharitable to blame President Buhari. Have we forgotten that shortly after assuming office many states could not pay salaries and he had to give bailout to states to enable them pay salaries. The Federal Government even before he assumed office was borrowing to pay salaries of federal civil servants. I find it difficult to fault the man. And what was the money used for? Nobody can say definitively. Was it used for infrastructure development? No, if it was, the situation might have being different. I really don’t know how the President can be blamed. Some say he should have acted quicker. In what sense, I am not certain. Here is a country that was importing virtually everything. From rice, palm oil, corn, toothpick and every other consumable and the oil prices that funds those imports were collapsing. What do you expect will happen? Let’s stop deceiving ourselves and listening to useless propaganda. Nigeria’s economy was not a productive one structured to cater for the needs of the people. This man came at a time we were in a hole and even digging ourselves deeper into the hole and he stopped us from further digging and to start filling the hole we were digging. For me, that is even an achievement. President Buhari is a serious minded leader and that is why I support him.

    What’s your assessment of the performance of the past administrations?

    The money was flowing into the coffers and flowing out at the same time. No savings and no strategic national programme and projects to wean us out of crude oil dependence. The result was the oil shock that spiral into economic contraction that caused recession. If refineries were working, perhaps we would not need to spend so much in importing fuel. If electricity supply was stable, industries would be operating at higher efficient level. If the railways system was in place and operating, movement of goods and service would be cheaper and affordable, and we can go on and on. Without these basic national infrastructures the economy was primed to collapse. People say before money was flowing, I agree it was. But was it flowing from any serious productive activity? We know the answer. It was not. We were importing, importing and importing everything under the sun. So, no, there was no plan to ease us off crude oil dependence.

    How would you compare Uduaghan and Okowa’s administrations?

    You cannot compare the two. Obviously, the two administrations have different agendas. The previous administration said its focus was to build an economy less reliant on oil and to invest in sectors that will ensure this happens. The current administration has a different agenda and from all appearances the programmes of the two administrations has not quite complemented each other and the result is that the state is not moving in a definable path. Mark you, each administration is free to prioritise its objectives and so Okowa’s administration can be explained that way. However, compared to the approach by President Buhari who having taken over is going ahead with many projects and programmes he inherited from the previous administration, fine-tuning them as he deems fit, I am not so sure that the current administration in Delta State is doing the same.

     

     

     

     

     

  • ‘Passage of PIB ‘ll solve industry, economic woes’

    ‘Passage of PIB ‘ll solve industry, economic woes’

    The oil and gas industry, the nucleus of the economy, has been on the decline in the last three years. Major players in the industry such as the Managing Director/Chief Executive Officer of Wottnig Group Limited, Mr. Oluwole Richard Oyebade, says despite the slump in crude oil price in the global market and campaigns against fossil fuels, Nigeria can overcome her economic woes with or without oil. 

    Since 2014, the business environment has been tough for the oil industry as a result of crash in crude oil price, how has Wottnig Group been coping with the downturn?

    Wottnig is an oil and gas company that was started on July 5, 2012. It became a limited liability in June 2013. It’s an energy dominant company. We are an oil offshore logistics company and a downstream petroleum group. We provide security crew boat for offshore vessels and we trade in the petroleum downstream. We sell and distribute diesel, petrol, aviation fuel, lubricants and liquefied petroleum gas (LPG).

    Since 2014, the business environment has been really tough for the oil sector. We have been coping by increasing the quality of our products, embracing technology and reducing our manpower. We train and retrain all our employees and we double our steadfastness in the delivery of our products to our customers.

    We realise the importance of cutting cost in situations like this. That is the reason we had to reduce our manpower. It got to a point where we have to put majority of our staff on contracts, lay off others and retain those with high profitability, good performance and high character ethics level. We remain resolute to succeed despite all odds. We belong and we specialise in the downstream and offshore logistics. We will be taking more drastic steps to keep us afloat.

    What future does oil hold in the life of Nigerian economy?

    The future of oil in Nigeria is still very bright. Nigeria still depends on oil to drive the economy. Personally I think it is time for our government to support diversification of the economy. This will make many people gain more exposure, our goods to be exported and we make more money for the growth of the economy. Nigeria will prosper more if we can reduce our attention on oil as the lifeline of the economy.

    What are the implications for foreign investment considering some contentious provisions in the Petroleum Industry Bill (PIB)?

    The PIB is one of the best things that has happened in our lifetime. Let me tell you, no other bill has been more popular since Nigeria returned to democratic rule in 1999 than the current Petroleum Industry Bill. Maybe the freedom of information bill comes near. The reason is not far-fetched. Anything petroleum in Nigeria generates passionate interest. PIB is believed to be the master reference document that governs the Nigerian petroleum industry from the upstream through the midstream to downstream where Wottnig belongs (servicing, refining, distribution, transportation and marketing/retailing). Shortly after President Olusegun Obasanjo assumed office in his first term, he set up a committee called the oil and gas industry committee (OGIC), with a mandate to take a comprehensive look at Nigeria’s oil and gas sector and offer better ways of managing the industry. Obviously many of the laws and regulations guiding the industry had been around for long, some as far back as 1950. Although they had undergone amendments, the Federal Government considered it necessary to take a holistic review of the industry with a view to getting the best of it by all stakeholders.

    The (OGIC) was led by the former Minister of Petroleum Resources, Rilwanu Lukman, a veteran petroleum engineer and former Secretary-General of OPEC. The committee had other oil industry eggheads. The committee submitted its report and its recommendations formed the basis of Petroleum Industry Bill, which has since been subjected to further reviews and adjustments.

    What does PIB seek to achieve?

    The bill, among other things, seeks to create a conducive business environment for petroleum operations, enhance exploitations and exploration of petroleum resources in Nigeria for the benefit of Nigerians. In addition to that, the law seeks to optimise domestic gas supplies especially for power generation and industrial development. Also, the law will encourage investment in Nigeria’s petroleum industry; optimise government revenue, establish profit- driven oil entities, deregulate and liberalise the downstream sub-sect                                                                                              or, create efficient and effective regulatory agencies. The PIB seeks to promote the development of Nigerian content in the oil industry; protect health, safety and the environment in the petroleum operations.

    What are the implications or objectives of these for the industry?

    The key implications or objectives to note from the above would be the creation of more jobs for Nigerians as it will become illegal to employ foreigners for certain skills that can be sourced locally. Whereas in the past such skills are sourced from abroad with the pretence that qualified personnel are unavailable locally, giving room to make expatriates employed for jobs Nigerians can do. The above is applicable not only to skill but to material sourcing. The PIB when passed into law will also create more jobs for local contractors especially those from the oil producing regions. Gas is still under focus in Nigeria and the potential from this resource is still untapped. The PIB seeks to maximise these if well articulated and will also boost power supply in Nigeria.

    In the long run, government revenue from oil and gas extraction will increase. This means more funds in the hands of government to engage in development activities. The downstream sector will become fully deregulated. In other words, subsidy regime has to go. Subsidy removal is not totally bad, if there are no distortions to market.

    Governments globally are being pressured to foreclose fossil fuel development as a result of the attendant pollution, is Nigeria preparing for this?

    Environmental protection and what late Ken Saro-Wiwa and eco warriors and activists fought and died for cannot be wished away. It’s crucial to ensure that we do not destroy our environments as a result of oil exploration. I think the PIB has taken care of the initial grudges of the Niger Delta militants who want a fair share of the proceeds from oil.

  • Obasanjo slams successors for economic woes

    Obasanjo slams successors for economic woes

    Former President Olusegun Obasanjo yesterday took a swipe at his successors, blaming them for the nation’s economic woes. He said God was not responsible for the problems hindering the development of Nigeria.
    Obasanjo spoke while chairing the 38th Kaduna International Trade Fair Seminar with the theme: “Promoting Public Private Partnership as Panacea for Accelerated Growth and Development”.
    The ex-President said “that Nigeria is where it is today is a question of leadership and not God”.
    According to him, “somebody came to me and said we need to pray to God and I said, for what? He said, so that God can do for us, what we cannot do for ourselves. And I said, no, let us stop troubling God, because God has done all we need for us, we only need to play our own part.
    “But, if we must pray to God, our prayer should be that God should not take away all He has given us as a nation.
    “God, in His mercy, has given us all the needed resources, both human and natural, but we have not been able to put them together and manage them effectively. The countries that have developed and are performing better are not better than Nigeria in terms of resources.
    “One problem that must be corrected is the problem of leadership. This is because our leaders lack focus, commitment, continuity and sometimes proper knowledge about economic and development issues, hence we have not been able to achieve meaningful result.
    “Another problem is that, we take one step forward and two backward. Nigerian leaders must be tough and ready to bite the bullet, because Nigeria cannot have it easy. Until we get the right leadership, the problem will continue”, he said.
    Registering his displeasure over inconsistency in policies, Obasanjo said: “I banned importation of toothpick in 1977, because it was the most stupid thing to import when we can produce it here. But, about 40 years after, one of my successors, I won’t mention his name, unmanned toothpick. Then, I put on my Babanriga and went to Abuja to express my shock about the policy, but to my greatest surprise, the President told me, he signed the document unbanning toothpick without reading it.
    “Another thing is that, he came in saying he will generate additional 30,000 megawatts to the 3,500 megawatts we left behind, and I told him, don’t trouble yourself, if you can add 3,000 megawatts to the one we left behind, you will receive awards. But, to my greatest shock, he couldn’t add one megawatt before leaving office”, he narrated.
    Speaking on the public-private partnership, the former President said lack of synergy in public-private sectors was responsible for the set back in the nation’s economy and growth.
    He said: “The public sector perceives the private sector as a profit making industry that reaps where it does not sow, but in actual fact, they are two legs that when brought together can accelerate development in all sectors of the economy.
    “Public and private sectors must work together to accelerate growth and development. When we were in office, we privatised the Nigeria National Petroleum Corporation (NNPC) and sold to Dangote and partners, but the government that succeeded me revoked it and that is why till today, NNPC cannot work optimally.
    “But, today the same Dangote that was denied ownership of NNPC is building a refinery that can produce in excess of what NNPC can produce and what Nigeria can consume. So, it means he will even export.”
    In his lecture, former Minister of Finance Shamdudeen Usman said Nigeria was facing backwardness in economic growth and development because of the lack of continuity in governance and poor will by political leaders to complete projects started by their predecessors.
    According to him, “delay in budgetary approval process and also padding of the budget contribute to the slow acceleration of growth and development experienced in the nation.
    “Short term policies affected PPP projects across the country due to inconsistencies in government. Though several governments gave high support to PPP, only President Olusegun Obasanjo’s administration recorded about 90 per cent completion of PPP projects and they include the Garki hospital in Abuja, Lagos International Airport, port terminals, amongst others.
    “However, the Jonathan administration took a huge step in adpoting a 30-year National Integrated Infrastructure master plan, which targets core infrastructure in the country, but nothing much has been achieved so far,” he said.

  • Kashamu to Nigerians: support Buhari to end economic woes

    Kashamu to Nigerians: support Buhari to end economic woes

    The Senator representing Ogun East, Senator Buruji Kashamu, has urged the citizenry to support the President Muhammadu Buhari administration to tackle economic challenges facing the country.

    He identified bad leadership, corruption and lack of political will to save for a rainy day as some of the factors responsible for the economic woes.

    Kashamu, who spoke at an interactive session with journalists in Lagos, said: “President Muhammadu Buhari became the president of this country at the time the global economy was not only in the doldrums; the global economy was also battling recession. Oil prices were flunking lower and restiveness in the Niger Delta made matters worse.

    “In some ways, you may want to say that he was not as lucky as his predecessor. I must say that Dr. Goodluck Jonathan was the luckiest person to have been president of this country. Oil prices were phenomenally high and the amnesty programme that was still at the early stages of implementation maintained some kind of truce in the region.

    “External debt was actually very low and our excess crude account was heavily funded. But he mismanaged the resources at his disposal and left the country broke and vulnerable.”

    The senator added: “There is enough information and analysis that give an honest perspective to our current predicament. It is now common knowledge that the administration of our father and mentor, ex-President Olusegun Obasanjo, left behind $45billion external reserves and the late President Umaru Yar’Adua administration grew the reserves to $64billion within just one year.

    “That was why it was able to finance 15 months of imports despite the 2008/2009 world economic meltdown. Hence, Nigeria survived the meltdown because those administrations had the political will to save. Even more commendable is the fact that in spite of the tough economic reality at that time, the administration left $47.7 billion in reserves and an external debt of $3.94 billion even though the administration earned only N9 trillion from crude oil sales within that short period.

    “But after the demise of President Yar’Adua, his successor’s lack of political will to save in the midst of an oil boom brought economic destitution.

    “It would be recalled that Brent crude sold at over $100 /barrel and raked in N51trillion within a period of five years. But because of corruption, governors demanding it was their constitutional right to take all the savings and other irresponsible acts of government, the administration did not only squander the oil revenue, it depleted the reserves left by  President Yar’Adua, leaving $32billion and a huge external debt of $63billion.”

    Kashamu berated those who said things were better off in the past when corruption was rife, stressing that, “It was their seemingly little acts of corruption here and there that coalesced to get us to where we are today.”

    He urged the citizens to give Buhari the required support to move the country out of recession.

  • Alegeh blames economic woes on past administrations

    Alegeh blames economic woes on past administrations

    Nigerian Bar Association (NBA) President Augustine Alegeh (SAN) has blamed past administrations for the country’s economic woes.

    He said they lacked the vision and expertise to place Nigeria on the path of development.

    Alegeh  spoke in Benin while delivering a lecture entitled: Law and National Development at the 15th Annual Justice Idigbe Memorial Lecture.

    It was organised by the Faculty of Law, University of Benin.

    He said Nigeria had witnessed abuse of office and mismanagement of resources by those entrusted with the commonwealth.

    Alegeh said: “Though Nigeria’s crude oil and gas reserves have continued to increase over the years, despite our enormous endowment, Nigeria has not been able to record significant economic growth and development relative to our resources.

    “The reason for the Nigeria’s economic woes and setback were identifiable as absence of rule of law, corruption, insecurity and failure to implement extant laws,” he said.

    Alegeh said several programmes were initiated and sold to the public as designed to boost development and economic growth, but regretted that “these programmes were mere conduits to siphon and loot the public treasury”.

    “The few of such programmes that worked and impacted positively on the lives of the citizens were later abandoned by successive governments that erroneously thought that these programmes had served their purposes being the initiatives of previous administrations.

    “One remembers with nostalgia, the days when the US Dollars was lower than the Naira at about 70K-$1. During those days, the Naira was considered to be a very strong currency exchange in the world market based on the value of products Nigeria exported. Presently, we are faced with the sad reality of having the currency exchange rate at $1 to N320.”

    He said it has become imperative to examine the relationship between law and national development in nation building, adding that  governments across the world  are increasingly engaging in law reforms as they seek to ignite, support and sustain economic growth and development in their countries, and Nigeria must not be different.

    Alegeh, who said the  petroleum industry had undergone several modifications and reforms, noted with dismay that: “it is rather unfortunate that, despite discovering crude oil over 59 years ago, we are yet to enact an Act that has the capacity to regulate activities within the petroleum sector.

    He reiterated that attempts  by the National Assembly to balkanise the Petroleum Industry Bill and pass it piecemeal is certainly not the solution to the problem in the Oil and Gas Reform, adding that the PIB is expected to address the constant face -off between oil companies and their host communities.

    “The PIB should address the issue of the destruction of the ecosystem via pollution of the water system leading to the death of fishes and other sea animals. The PIB should also be able to address the issue of youth restiveness and militancy in the Niger Delta region. These and many more issues are expected to be addressed by the PIB as part of the reforms expected to be introduced in the oil and gas sector,” Alegeh stated.

  • Governors, others proffer solution to economic woes

    Governors, others proffer solution to economic woes

    Governors yesterday spoke on their efforts to ride through the economic turbulence Nigeria is going through.

    To Lagos State Governor Akinwunmi Ambode, the economy is at a critical threshold which requires leaders to think outside the box and come up with innovations that will trigger growth.

    He lamented that previous governments at the federal level failed to take advantage of the oil boom to grow other sectors of the economy, adding that the fall in oil price, coupled with many years of corruption, made the economy vulnerable.

    Ambode said: “It is very unfortunate that we wasted the golden opportunity to deploy the trillions of dollars earned from our oil exports to develop the critical sectors of the economy, including power, agriculture, industries, solid minerals, transportation infrastructure, among others.  No doubt, if we had done the right thing as some other oil producing countries did, keeping in mind that crude oil is a finite resource, we would not be experiencing the devastating effect of oil price crash on the scale we are experiencing it now.

    “We are now being forced to do, with pains, what we should have done with ease years ago. The task of charting a new direction for the economy is not going to be a tea party. Various policy options must be identified and assessed on the basis of our current situation and needs.  Moving our economy forward requires thinking outside the box and doing things differently. We need creativity, innovation and the courage to take difficult and tough decisions.”

    “The leadership of the country at national and state levels must have the courage to take tough decisions and make sacrifices in the near term which will, in the long run, make our economy stronger and sustainable and, consequently, result in prosperity across all regions of Nigeria,” he said.

    Recommending strategies to improve the economy, Ambode said Nigeria must begin to explore and expand the opportunities that abound in inter-state relations and strengthen regional competitiveness by maximising economies of scale, regional optimisation of assets and endowments and mitigation of afflictions and natural disasters.

    “Given our current economic challenge, I believe it is time we took a cue from our old ‘playbook’ for a viable ‘game plan’ to revive our national economy. States and regions must, once again, begin to leverage on their respective areas of comparative advantage by establishing partnerships towards establishing inter-state or inter-regional commodity value chain. We must re-start inter-state/regional cooperation,” he said.

    Ambode expressed his desire to see okada riders off the streets of the mega city by making the environment conducive for the Small and Medium Enterprises (SME’s).

    He said a large percentage of those engaged in okada riding are not there for the love of the vocation but pushed into it due to an absence of an enabling environment for the trades they were engaged in.

    His administration has come up with various stimulus packages for SMEs to thrive.

    Ambode gave instances of soft loans and other stimulus packages put in place to help trade and economy thrive in the state.

    The event attracted eminent personalities, including the Chairman of the Board of Directors, Vintage Press, publishers of The Nation, Mr. Wale Edun, Prof. Adebayo Williams, Hon. Wale Oshun, Mr. Ayo Opadokun, Prof. Olatunde Dare, Secretary to Lagos State Government Mr. Tunji Bello and top government officials from Imo State.

    Imo State Governor Rochas Okorocha said the difficult economic time required the wisest course of action and not sentiments.

    According to him, Presidennt Muhammadu Buhari is a visionary who is addressing the problems. Before now, people did not fear to be associated with corruption because the government’s claim to fighting corruption was mere theoretical pronouncements but now corruption is not taken lightly.

    In Okorocha’s view, Nigeria is not a poor nation by any standard; “it is the most blessed of all nations in the world”. He said Nigeria’s economic problem is not about the fall in oil price or the government’s lack of attention to the economy.

    According to him, Nigeria’s problem is that the Federal Government overburdened itself with a lot of power and responsibilities, including those that are most appropriately undertaken by state and local governments.

    He said the local government, which is the closest to the people, has the least powers and funding while the state governments also depend on handouts from the Federation Account to drive their operations, which is a misnomer.

    Governors, Okorocha said, are just executive cashiers who wait to collect allocations monthly to be able to  carry out their responsibilities to the people they govern. Besides Lagos State, other states run on allocations from Abuja, most of which go to payment of salaries, the governor said.

    Okoroacha added: “We must do things differently, if we want to move the economy forward and meet the expectations of the populace. How long shall we (state governments) depend on the Federal Government for survival? The Federal Government should devolve power. Nigeria has practised top to bottom (federal to local government) process of governance for so long and has continued to achieve unfavourable result. It is time to practise bottom to top (local government to federal) system of governance where the bulk of funds goes to the local government and the least to the federal.

    “Why should the Federal Ministry of Agriculture get very fat budgetary allocation while it has no land to farm? We must do things differently to move the economy forward.

    “Also, our educational system doesn’t encourage economic development. We still practise neocolonialism. Why should it be mandatory to have credit pass in English language and Mathematics before gaining admission into a higher institution, especially the university? We should tailor our education to specialties. There is need for special schools to develop expertise.

    “In my state, I introduced the fourth tier of government – the community government – where all the traditional rulers and other community leaders play prominent roles. This tier of government has helped me to ensure security. They report any criminal or someone with questionable character to my government, and we go after such people. The Imo State Government also empowered the communities by dedicating a fund in the community banks to access money to embark on production of goods that they have comparative advantage. This process has significantly reduced unemployment and crime.”

    Oyo State Deputy Governor Adeyemo highlighted the importance of diversification of the economy along the lines of states’ natural resources.

    He said there was no advantage whatsoever in monoculture and mono-economy, underlining the importance of diversification.

    Alluding to the need to diversify from crude oil and refocus on Nigeria’s abundant resources, especially agriculture, Adeyemo pointed out that the Cocoa House in Ibadan, the first high-rise building in Nigeria built 50 years ago, and the Airport Hotel,  built 40 years ago, were built with proceeds from  cocoa by the then Western region.

    He expressed the willingness of the Oyo State Government to further explore opportunities in inter-state relationship, noting that the state will be willing to partner with the Lagos State Government in agriculture.

    According to him, Oyo State, with a vast landmass of 32,000 hectares for farming, and Lagos State, with its enormous capital and appetite for agricultural investments, can partner to explore the agricultural potential of the state and create wealth and jobs across the states.

    “We will like to sign a Memorandum of Understanding (MoU) with Lagos State in the area of agriculture,” Adeyemo said.

     Ogun State Commissioner for Industry Ashiru, who represented the governor, said: “Nigeria should move beyond production of agricultural produce to manufacturing of agricultural products.”

    He said Nigeria should develop the value chain of the agricultural sector to take maximum advantage of the nation’s resources.

    To Ashiru, the decline in the global crude oil price is a blessing in disguise for Nigeria as it presents the opportunity for the nation to reassess its consumption pattern and taste in favour of local production and consumption.

    According to him, the time is ripe for Nigerians to look inward by supporting local production by advocating for and consuming locally made products as a matter of patriotic duty for national economic development.

    He noted that Ogun State has emerged as the most attractive destination for investors because of the government’s business- friendly policies adding that the state would further explore its synergistic relationship and closeness to Lagos State to develop mutually beneficial businesses.

    Citing the Lagos State-owned Adiyan Waterworks and farm settlement in Ogun State as well as granite supply from Ogun State to Lagos State, Ashiru said inter-state economic cooperation could be mutually rewarding for all the partnering states.

    He warned against the call for the devaluation of the Naira, noting that devaluation would constrain the long-term national economy and transfer Nigerian economic benefits to other countries.

    The Italian Consular General in Nigeria, Mr. Andrea Pompermaier, said the country should make a more concerted effort to engage the international investment community to showcase the latent potential and resources of the country to global investors.

    Pompermaier said Nigeria has so much vast resources that could attract global investors but the country’s international profile has been largely dominated by its crude oil and sleaze.

    According to him, there is need to represent Nigeria and its abounding opportunities to the global investment community to give a broader view of the country, its resources and people.

    He said his personal experience in Nigeria has shown that some of the international opinions about this country were misplaced as there is much more to Nigeria than oil.

    Pompermaier said Italy believes in the future of Nigeria, assuring the audience that the Italian consulate would work to further strengthen the bilateral relationship between Nigeria and Italy by bringing Nigerian and Italian businessmen together.