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Tag: Economy

How we’ll boost Katsina economy, by Masari

Fresh from a trip to China and India, Katsina State Governor Aminu Masari lays out his administration’s plan to lift the state’s economy. KOLADE ADEYEMI reports

There is the belief that foreign partners will make a huge impact in the state’s growth. But there is no question that Katsina State Governor Aminu Masari wants much of the growth to be driven by the state’s assests and its people. He laid out his plans

“In the health sector,” he said, “we have already placed order for equipment for three general hospitals. We have also made an advert for the recruitment of over 600 medical staff.

On agriculture, he said: “We are making serious progress. The Deputy Governor is the chairman of the Agriculture Team. He is also the Commissioner in charge of Agriculture. We also brought in a professional who was a consultant to various international organisations on agriculture, Dr. Abba Abdullahi. I must tell you that I am impressed by what they are doing now. They are doing a ground work. You know, agriculture is not all about fertilizer; because mere distribution of fertilizer is all about ceremony which the governor s are very interested in doing so that the cameras and media will capture them. Here in Katsina, we are doing the most important work now. We are doing the census because we want to know who-is-who, we are identifying the real farmers, we are identifying the farm lands, we want to know which type of fertilizer is suitable for the farmlands, which implements are suitable for the farmlands. We are doing the basic ground work, we have sufficient money in place; and when we are through with the ground work, we will also start rehabilitating some of the smaller dams.

“When we were campaigning, what we were saying was that given the availability of resources, it is our intention to provide a dam in each of the Wards, intending to open the availability of small steam that can engage between 30 to 50 farm lands on irrigation agriculture. So, for us to that, we need a comprehensive study. Like we said several times, this government is not, and there is no intention of approaching any project blindfolded so that we can achieve quick and unsustainable political gain—that means we want to play to the gallery. No. We want to be realistic, we want to true to our words. Basically, we have to do what is right, we want to lay a solid foundation for a more sustainable agriculture in Katsina State.

“We have also started discussing with some interested people about wood farming, you know, wood farming is new. People did not know that if you have two hectares of wood land, and you are harvesting it every year, you make more money than the farmer. There are certain types of trees that you plant that will give inexplicable returns. So, we are introducing wood farming so that people will know the benefit and the dangers of falling trees without re-planting them.

Masari specifically spoke on rice production, saying, “Katsina State is one of the leading states in rice production, and you know, there is a serious drought on rice. You know that Nigerians have been cultured into eating rice. It is unlike when I was growing up—the stable food then was guinea corn and millet. Later on, maize came. In fact, maize was more of a ceremonious food during our time, but as time moved on; it became a stable food with the coming of the Funtua agricultural project in the 1970s. So, really, I think it is better to eat what you have and what you can produce than to depend on somebody to give you. So, I believe, there is some difficulties initially; but when we are able to cross over the difficulties of this year, by next year, there will be abundance in rice production in Katsina state. In fact, prices of rice has already started going down because the new rice are already in the market; and I am sure, between now and October, the prices of rice will relatively stabilize. You are also aware that Central Bank of Nigeria is organizing one project on the promotion of rice production, and in Katsina state we have 50, 000 participants.

Speaking on the trip to China and India, Masari said, “We were invited to China by some companies that are doing business with Katsina state government; and some that are interested in doing business with Katsina state government. The purpose was for us to see their offices and their capacities outside the country, and to see what connection we have in order to facilitate our developmental projects. Based on our invitation, we met with those companies that are doing business with Katsina state government and those companies who are in Nigeria and have the intention to do business with Katsina state government. There are some of these companies that have their branches here in Katsina state but are doing business with the Federal Government, but due to this visit, we have now opened door for business transactions with those

September 6, 2016
How to fix economy, by Nestle, Airtel, LCCI chiefs, others

Business leaders and chief executives of major companies across the key sectors of the economy yesterday stressed the need for the Federal Government to address the challenges of infrastructural gap, policy inconsistency and fiscal and monetary policy mismatch so as to stimulate the nation’s economic development.

The chief executives and business leaders in the manufacturing, telecoms and financial services sectors as well as economic thinkers and the organised private sector (OPS) met yesterday in Lagos at the Nigerian Stock Exchange (NSE) under the auspices of the 2nd edition of the CEO Roundtable organised by the NSE and Bloomberg.

The Managing Director, Nestle Nigeria Plc, Dharnesh Gordon, said the problem of inadequate power supply had worsened due to unavailability of gas, forcing companies to resort to more expensive alternatives.

In a two-point advice to President Muhammadu Buhari, Gordon urged the government to focus on resolving the power problem and to enforce the rule of law as basis for government actions across all tiers of the government.

According to him, government should discourage the tendency by tiers of government to resort to all sorts of self-helps in the name of revenue generation without recourse to national laws on such issues.

CEO, Airtel Networks Limited, Mr, Segun Ogunsanya, said Nigeria needs to develop a vision of her own and channel resources to achieving this, noting that a visionary approach to the development of the nation would lead to proper allocation of resources.

He urged government to take a broad outlook to national economic development, pointing out that while the immediate challenge of foreign exchange (forex) may be important, there are other factors that engender capital and investment flow including infrastructure, political system, security and stable policies.

Ogunsanya urged the government to leverage on the information communication technology (ICT) potential of the country to drive inclusive economic growth.

According to him, government should consider digitalisation as a viable option for growth by creating affordable access to broadband.

He said the telecoms companies should be considered as part of the manufacturing sector and urged the government to allow broad and non-discriminatory access to forex.

Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, said government should work to rekindle investors’ confidence in the economy because capital and investment flows from investors are needed to complement government’s developmental drives.

According to him, government can rekindle investors’ confidence in the economy by the quality and consistency of its policies.

Senior Economist, Africa and Middle East, Bloomberg Intelligence, Mark Bohlund, noted that Nigeria will be left behind if it fails to fix the power problem.

He also underscored the importance of strict adherence to rule of law as this will drive investment inflow into the country.

Director, Investment Banking, Chapel Hill Denham, Mr. Ayo Fashina, called for a more measured and coordinated approach to monetary policies management, describing the current approach as more of guesswork.

Economist and public policy analyst, Dr. Ogho Okiti, said government needs to coordinate development blueprint and identify policy options that will help to drive the growth of the economy.

“Money doesn’t grow the economy, policies do,” Okiti said.

September 1, 2016
Does Buhari need emergency powers to fix economy?

President Muhammadu Buhari is seeking emergency powers to aid his plan to stimulate the economy. An Emergency Economic Stabilisation Bill 2016 is to be presented to the National Assembly when it resumes on September 12. If passed, the bill will give the President powers to set aside some extant laws and use executive orders to roll out an economic recovery plan. Is the President’s proposal legal? JOSEPH JIBUEZE sought lawyers’ views.

When the National Assembly resumes from its vacation on September 12, it will receive a bill seeking emergency powers for President Muhammadu Buhari. Under the Emergency Economic Stabilisation Bill 2016, the President will be seeking powers to set aside some extant laws and use executive orders to roll out an economic recovery plan.

The economic team, it was learnt, believes the President needs emergency powers to tackle recession urgently, which some of the extant laws will not permit. Last month, Finance Minister Mrs Kemi Adeosun told the Senate that the country is “technically in a recession.” She had said: “Is Nigeria in recession? Technically. If you go into two quarters of negative growth, technically, we are in recession. But I don’t think we should dwell on definitions. I think we should really dwell on where we are going.”

Buhari will be seeking powers to abridge the procurement process to support stimulus spending on critical sectors of the economy; make orders to favour local contractors/suppliers in contract awards; abridge the process of sale or lease of government assets to generate revenue; allow virement of budgetary allocation to projects that are urgent, without resorting to the National Assembly.

He will also embark on radical reforms in visa issuance at Nigeria’s consular offices and on arrival in the country. In addition, the President will compel some agencies of government, such as the Corporate Affairs Commission (CAC), the National Agency for Foods Administration and Control (NAFDAC) and others, to improve on their operation time for the benefit of business.

The extant law on procurement does not allow contract award earlier than six months after decision. Part of it is a mandatory advertisement of the contract for six weeks. The economic team has found this to be unacceptable, given the present circumstance.

Although the President has the power to order the sale or lease of any government asset to raise cash, “the procedure is cumbersome and long”. If granted emergency powers, the President plans to ease the process.

The US example

The President of the United States possesses certain powers to act in emergency situations. Though such “emergency power” is not specifically expressed in the Constitution, the Executive Branch is designed to be able to act quickly in times of war or national emergency.

Because emergency power is not specifically stated in the Constitution, its scope is somewhat limited, typically extending only to situations that compromise or threaten the safety or well-being of the public.

Emergency powers, however, require legislative backing. Former US President Harry Truman declared emergency powers when he seized private steel mills that failed to produce steel because of a labour strike in 1952.

With the Korean War ongoing, Truman asserted that he could not wage war successfully if the economy failed to provide him with the material resources necessary to keep the troops well-equipped.

The U.S. Supreme Court, however, refused to buy the argument. The justices, in a 6-3 decision, held that neither law nor any claimed emergency powers gave the President the authority to unilaterally seize private property without Congressional legislation.

The Philippines example

President Rodrigo Duterte of the Philippines recently proposed that he be granted emergency powers to resolve traffic congestion. The proposal is before his country’s Senate Committee on Public Services. The first hearing on the proposed emergency powers was held on August 10.

Under the proposal, Duterte will be empowered to use alternative modes of procurement for government projects. Courts may also be barred from stopping certain projects.

The proposed emergency powers include favouring direct contracting over public bidding for transportation-related projects, opening private sub-division roads to traffic, and removing transport terminals and public markets on busy highways.

According to a study by the Japan International Cooperation Agency (JICA), the Philippines economy loses 2.4 billion pesos (about $51,762,648) daily due to traffic gridlock, hence the need for the emergency powers.

Does Buhari need emergency powers?

Although the National Assembly is yet to receive the proposal, some senators have reportedly criticised it, saying if passed, the President could turn into a dictator. According to them, if given further powers, the executive could reduce the National Assembly to a rubber stamp.

Others may have tacitly welcomed it. Senator Enyinnaya Abaribe, was quoted as saying: “Until I see the law, that is when we can talk about it. Anything that will push the country out of the present economic woes, the National Assembly will support.”

But, the Democratic People’s Congress (DPC), in a statement by its chairman, Rev. Olusegun Peters, said the Federal Government should focus on diversifying the economy and come up with sound economic policies and actions.

“Any attempt to give the President more powers will lead to tyranny and autocracy which is unacceptable in a democracy. Buhari did not seek extra powers to crush Boko Haram insurgency and will not need emergency powers to revamp the economy,” DPC said.

A former ambassador and Deputy Permanent Representative of Nigeria at the United Nations, Oladapo Fafowora, in his column, wrote that he found the claim that the President needed extra powers to tackle economic problems astonishing.

“In fact, I consider it dangerously delusional. It is a populist economic strategy that will attract some support from the public who, in their desperation, will clutch at any straw now in the hope for a dramatic transformation of the economy after decades of neglect and mismanagement.

“But I do not think that giving the President wider emergency powers and impunity over the economy now will produce any significant change in the economy. He knows he does not have a magic wand to accomplish that,” Fafowora wrote.

He added: “Instead of giving the President wider emergency economic powers, what the country needs are reformed state and public institutions that can be relied upon to function more effectively.”

What do lawyers think?

Lawyers are divided on whether the President needs emergency powers. Dr Joseph Nwobike (SAN) and Dr Babatunde Ajibade (SAN) do not see anything wrong with the President being granted emergency powers to fix the economy. But former Nigerian Bar Association (NBA) President Joseph Daudu and Mallam Yusuf Ali (SAN) hold different views.

Nwobike said: “There is absolutely nothing wrong with the purported legislative proposals, by way of the executive bill, being made by the President. The responsibility to pass, with or without any modification, or to reject it is that of the National Assembly.

“I believe that, in its consideration of the bill, the National Assembly would certainly be guided by national interest and the constitutionality of the relevant contents of the bill.

“Although blind political considerations would certainly come to play, given our past experiences, I am confident that the two chambers would be properly guided by the need to move Nigeria’s democracy forward.”

On whether such powers would be constitutional, Nwobike said: “It is difficult for anyone to comment on the constitutionality of the proposals, since the explanatory notes and the bill itself have not been officially put in the public domain.

“However, it appears to me that this President, being a powerful and executive president, already has a wide range of executive and quasi legislative powers to drive away the current economic hardship and depression that we are currently facing.

“In any event, if he requires legislative authorisation to give effect to his constitutional powers, I think that the proposals should be patriotically considered.

“The paramount highlight in the foregoing exercise, for both the legislature and judiciary, is that the President must be denied unbridled and Ergdogan powers.”

Ajibade sees nothing wrong in granting the President emergency powers if that is what is required to revive the economy. Asked if he had backed the proposal, he said: “A qualified ‘Yes’, because I don’t have a full grasp of all the proposals.”

He continued: “But the aspect of it that struck me, that I thought is definite something we need to look at is the area where, due to statutory bottlenecks, government is having challenges with reflating the economy because they have to go through so many procedures.

“We are in an emergency situation and if government has to go through a six-month procurement process before it can carry out specific things that will assist the economy to move forward, I think that that is worth looking at even if temporarily.”

The Public Procurement Act (PPA) 2007 does not allow for contract award earlier than six months after procurement/contracting decision has been taken, as there is provision for a mandatory advertisement of the contract for six weeks, thereby making the procurement cycle long.

The Bill also points out that the ceiling on 15 percent of contract sum for Advance Payment/Mobilisation provided in the PPA is inadequate and cannot mobilise contractors to sites and ensure timely execution and delivery of projects.

Analysts say the law already provides for restricted tendering, direct procurement, and emergency procurement under Sections 40, 42 and 43. To them, this could be explored to fast-track contract awards without passing the rigours of the tendering process.

Besides, they said the relevant sections of the PPA can be amended– including increasing the Advance Payment to the proposed 50 percent – to bring them in line with current realities.

Daudu: “I don’t see the need for emergency powers to fix the economy. There’s probably something they’re not telling us. But it didn’t take extra-ordinary situations to get us into where we are.

“What the nation needs is a foreign exchange policy works and keeps the naira at a comfortable rate for manufacturers to be able to carry on production. Do they need emergency powers to sit down and devise a policy that works?”

On the need to speed up the procurement process, Daudu said the Federal Government did not always comply with the law.

“I think that the issue of procurement has been followed more in the breach than in compliance. The last administration kept awarding the contracts at the Federal Executive Council meetings. At that point, there was already a departure from the statutory provisions of procurement.

“That cannot be the only reason why such extra-ordinary measures are being sought. If you check the laws on procurement this time can also be abridged,” Daudu added.

Ali said the until the Bill is forwarded to the National Assembly, it remains in the realm of speculation. He, however, thinks that if there are any laws hampering economic progress, they could be amended.

“My understanding of emergency power is something that was not provided for. Even if the National Assembly says some laws should be suspended, there must be a law to back it. If, for instance, the Companies and Allied Matters Act is to be amended to limited the requirements for company registration, it cannot be done by fiat.

“That is why we must wait and see exactly what the president wants, because emergency means something that was not envisaged by existing laws. That is why I want to err on the part of caution rather than making a blanket comment,” Ali said.

August 30, 2016
No need for emergency powers for economy
Sir: The Democratic People’s Congress strongly opposes President Muhammadu Buhari’s bill to the National Assembly seeking emergency powers to tackle economy now in recession.

Buhari claimed that the objectives of the emergency stabilization bill 2016 are to shore up the value of the naira, create more jobs, boost foreign reserves, revive the manufacturing sector and improve power supply.

These are exactly the economic issues Nigerians voted President Buhari to effectively tackle with the executive powers conferred on him in the 1999 constitution as amended.

Unfortunately, instead of taking governance seriously and diligently handle these and other crucial national issues, the APC-led federal government from the outset started playing to gallery and exhibited leadership fatigue to the shock of longsuffering Nigerians who expected change in their standards of living.

Any attempt to give the President more powers will lead to tyranny and autocracy which is unacceptable in a democracy. Buhari did not seek extra power to crush Boko Haram insurgency and will not need emergency powers to revamp the economy.

DPC has repeatedly called for an economic team made up of eminent Nigerians to proffer solutions to the dwindling economic fortune of the nation. Instead of doing this, the Buhari government allowed itself to be distracted by intra-party war over the leadership of the National Assembly etc.; it took the government almost what seemed like eternity to constitute the Federal Executive Council and present the 2016 budget with its purported padding.

To make matters worse, the Central Bank of Nigeria has been having a field day with its policy summersaults that have confused local and foreign investors. Today the dollar is sold for N402.00.

The government should sit up and do the right thing. Diversification of the economy is critical for the survival of our frail democracy and it starts with sound economic policies and actions.
- Rev. Olusegun Peters
National Chairman, DPC
August 29, 2016
Economy: Any alternative to Buhari’s Emergency Powers Bill?

In his desperate quest to revamp the nation’s ailing economy, President Muhammadu Buhari last Monday sought emergency powers from the National Assembly to reflate the economy. Ibrahim Apekhade Yusuf and Nduka Chiejina in this report, x-ray the President’s proposal vis-à-vis its unique selling propositions, prospects and challenges

IT does appear that President Muhammadu Buhari is in horns of dilemma over the parlous state of the economy, which is why he has sought desperate measures to turn the tide on the almost comatose economy.
A review of Buhari’s proposal
President Buhari has made a proposal to the lawmakers on what is considered by economic pundits as a blueprint for tackling the intractable problems besetting the economy.
The executive bill tagged: ‘Emergency Economic Stabilisation Bill 2016’ is to be presented to the National Assembly when the Senate and the House of Representatives resume from vacation on September 12.
The objectives of the action-plan on the economy, which is in recession, include shoring up the value of the naira, creation of more jobs, boosting of foreign reserves, reviving the manufacturing sector and improving power.
Government sources said the decision to seek emergency powers for the President was based on a proposal from the economic team headed by Vice President Yemi Osinbajo. The team reviewed the various policies so far introduced and how they have affected the economy.
The economic team, it was learnt, gauged the mood of the polity and decided that unless there is an urgency which some of the extant laws will not permit, “The recession may be longer than expected and Nigerians will not get the desired respite, which is the goal of this government.”
In the bill, the executive will be asking for the President to be given sweeping powers to set aside some extant laws and use executive orders to roll out an economic recovery package within the next one year.
Buhari will be seeking powers to among others: abridge the procurement process to support stimulus spending on critical sectors of the economy; make orders to favour local contractors/suppliers in contract awards; abridge the process of sale or lease of government assets to generate revenue; allow virement of budgetary allocation to projects that are urgent, without going back to the National Assembly.
Besides, Buhari hopes to amend certain laws, such as the Universal Basic Education Commission (UBEC) Act, so that states that cannot access their cash trapped in the accounts of the commission because they cannot meet the counterpart funding, can do so and to embark on radical reforms in visa issuance at Nigeria’s consular offices and on arrival in the country and to compel some agencies of government like the Corporate Affairs Commission (CAC), the National Agency for Foods Administration and Control (NAFDAC) and others to improve on their turn around operation time for the benefit of business.
The extant law on procurement does not allow contract award earlier than six months after decision. Part of this is a mandatory advertisement of the contract for six weeks. The economic team has found this to be unacceptable, given the nation’s present circumstance.
Although the president has the power to order the sale or lease of any government asset to raise cash, the procedure is terribly cumbersome and clumsy, if you may.
Thus the draft bill is meant to ease the process. The government, it was learnt, seeks to ensure that about nine government assets be leased or sold to generate around $50billion to shore up the nation’s foreign reserves and the value of the naira against the United States dollar.
The objective is that state governments will have access to cash to develop education and thus facilitate creation of jobs since contracts will be awarded for the projects.
As for contract awards, the government, by the provisions of the law, cannot mobilise contractors with more than 15 per cent of contract sum. This is considered to be undesirable by the economic team given the pace the government wants to move in turning the economy around and in the provision of critical infrastructure. The bill will seek to allow the government to mobilise contractors with 50 per cent of contract sum.
Another important area which President Muhammadu Buhari wants to have addressed is fiscal deficit spending currently pegged at 3.0%, and debt-to-GDP ratio currently at about 14% which are among the lowest among Nigeria’s peer economies.
The move to get government agencies to fast-track their operations is to enable foreign investors to come into the country without the current bottlenecks.
Consular offices will now be expected to make visas available within 48 hours and visitors, especially tourists who intend to pick up visas at the entry point, will be able to do so.
Time wasting at the airport with duplication of agencies screening incoming passengers is to be eliminated just government wants those leaving the country to do so without much hassles.
For the power sector, the government plans to truck gas from source to the power plants to enable them get what they need for generation.
The Nation further learnt that President Buhari will engage the leadership of the National Assembly before their resumption to solicit support for the bill’s quick passage.
As to be expected, since President Buhari asked the National Assembly for emergency powers to steer the country out of economic chaos, economic experts have been speaking on the propriety or otherwise of the proposal with many holding the view and most strongly too that it owes the key to turn around the nation’s economic fortunes for good.
In fact, as many economic and financial analysts have argued, the economy is in a dire state and desperate times call for desperate measures. The government, they observed, not only needs to fix the economy, but also needs a few quick wins to restore its image in the public eye.
Sweeping endorsements by the OPS, organised labour
Thankfully, President Buhari’s proposal has received an imprimatur of support from the organised private sector as well as the organised labour. Firing the first salvo, Mr. Muda Yusuf, Director-General, Lagos Chambers of Commerce and Industry, LCCI, believes the measure is indeed a welcome relief just as the General Secretary of Ayuba Wabba-led faction of the Nigeria Labour Congress, NLC, Dr. Peter Ozo-Eson hails the decision.
The Manufacturers Association of Nigeria, MAN, is also on the same page with the LCCI.
In his reaction, Dr. Frank Udemba Jacobs, President of MAN, said: “It’s a step in the right direction. Something drastic has to be done by the government to rescue the economy from total collapse.”
Not on the same page with Buhari
However, while everybody agrees that the economy needs surgical attention; economic experts hold different views on the President’s desire to be given emergency powers to revamp the economy. Thus the optimism by some of the stakeholders has not been met with equal verve by a few people who seem to think that the president’s proposal leaves nothing to cheer about.
One of those stoutly opposed to the proposal in principle, is the Think Tank Team of Financial Derivatives Company Limited. The economic analysis team while admitting that this is the tonic that the economy now needs, however observed that economic success is never guaranteed except it is well-coordinated and effectively executed.
They argued that “Venezuela went down the economic emergency route in early 2016, with woeful results. The Nigerian experiment is more likely to be successful because it is seen as an ally of the Western world.”
The team led Bismark Rewane took a swipe at the Federal Government by stating that “on the whole, policy decisions have been reactive to economic events rather than in anticipation of them. The fiscal stimulus required to set Nigeria back on its recovery path is trickling in bits and pieces. The delay in implementation of the budget is also crippling the pace at which projects are expected to yield dividends that would trigger the much needed recovery. Now a potent risk is looming – the non-completion of the 2016 capital projects due to reduced fiscal revenue.”
“Nigeria’s major problem and probably the reason why it has remained on this course of hardship and pain, is the delay in key policy implementations. For policy decisions to be effective and efficient in achieving goals they have to be opportune, strategic and well-planned,” the Think Tank noted.
Like a double edged sword, Bismarck however expressed some positives in the bill. He argued matter-of-factly that, “The bill, if passed by the Nigerian Legislative arm, would mitigate regulatory drawbacks and would also expedite private and public spending required to implement key capital projects that would stimulate the economy.”
The success of the emergency plan the team added, is subject to the government’s ability to select some quick wins that are tangible. “If not, the government could be perceived as backtracking into the military era.”
The team also warned that “There are risks involved with assigning one person with so much powers and authority. The President could be seen as a democratic dictator. It could also breed political infighting especially in fractions that already believe the government of change has done very little to fulfill its mandate.”
Mr. Odilim Enwegbara, a development economist and financial expert who serves as Chairman/CEO at Pan Africa Development Corporate Company (PADCC) however has a different view.
Speaking in an interview with The Nation, he said the initiative is quite laudable but fears that the Emergency Economic Stabilisation Bill (EESB) might not see the light of day after all.
His reason is that this is the first of such a bill since the return of democracy where the President is demanding some sweeping economic powers from the National Assembly.
Quick wins
Giving his insight on the possible ways and means to address the nation’s current economic quagmire, Chief Michael Kayode Ajayi, General Manager, Western Ports, Nigerian Ports Authority (NPA), said drastic measures are what the government need to whip the economy to line.
Speaking at a public lecture organised by the Institute of Credit Administration (ICA), Ajayi who ventilated his views on the parlours state of the economy, at the centre of the economic crisis bedevilling the country, is the problem of insincerity of purpose on the part of the different tiers of government.
The NPA boss, who once served as the image-maker of the organisation, noted with dismay that: “Much as these problems have attracted intense attention, little has been achieved by government to solve Nigeria’s economic problems. The resultant failure to address it honestly and painstakingly has often resulted in several industrial crisis involving labour and non labour unions, perennial school closures, depreciating quality of infrastructure, unemployment and underemployment including social problems such as armed robbery, kidnapping, piracy, crude oil theft and bunkering, etc.”
According to Ajayi, some the measures required to put the economy back on track is amongst others things to diversify the economy and wean it away from a monoculture and single product economy.
The government, he noted, needs to pay better attention to the development of the nation’s solid minerals. The epileptic power supply, he equally stressed, needs to be addressed and timely too.
Besides, he wants the government anti-corruption agencies to be strengthened and empowered to be able to pursue corruption cases to a logical end.
Joseph Edgar, a public affairs commentator while attempting a prognosis of the economic woes of the nation, said: “The economy is in recession no doubt, and needs urgent intervention. The National Assembly should be working to find solutions not going on their usual vacations. But emergency powers may just be setting a negative precedence. The national assembly is there for a reason; and besides we elected a president, not an emperor.”
Expatiating, he recalled that during the Jonathan regime, the nation achieved self-sufficiency in some farm products due to the revolutionary policies in fertilizer which increased yields and gave rural farmers the very best in life. “Today, I do not understand what the situation is. We have the labour force, the climate, huge tracts of land to be coordinated and not only turn us into a food basket but also a major exporter of raw materials or even processed goods.”
As the controversy rages over the propriety or otherwise of the president’s proposal, it is hoped that Nigerians will not wait endlessly and in vain for the arrival of the much promised prosperity as the two characters, Vladimir and Estragon did in Samuel Beckett’s Waiting for Godot.

August 28, 2016
Making Ondo economy self-sustaining
Four decades after Ondo State was created, she is still breathlessly dependent on Abuja money. This cannot be said to be normal. It’s strange even. The grinding poverty and grim livelihood that is consequent to this heavy dependence on federal allocation attests to this unacceptable insufficiency, which clearly raises the need to immediately create a self-sustaining economy that is key to developing the state and creating better livelihoods for her people. Ondo State has the resources she needs within her purview – both natural and human – to become practically a wealth-generating and job-creating economy that can essentially sustain itself; thereby making oil revenues from federal allocation an added bonus rather than its mainstay.

But the great reality of the moment is a vivid reflection of the crisis of governance and leadership which have been the bane of our existence in recent time. The monumental challenges of poverty and underdevelopment that rear their ugly heads in our state today are products of several decades of unconscionable governance that was bequeathed to us by the do or die political apostles and their desperate local counterparts. They are hostile to our peace and progress in the times past. Their democratic expediency is replete with an orgy of maladministration, corruption, nepotism, favouritism, politics of exclusion, and a dearth of purposeful and responsible governance. The consequence of all this is a wobbly economy hanging precariously on a mono-product to the detriment of the industrial sector. The consequence of this is also education that has grown old and lethargic as well as teachers that are tired and suffused with the inclement condition of hardship; resulting in mass illiteracy in geometric proportion among the people, coupled with the general social convulsion.

A report from the Nigerian Socio-Economic Indicators in 2012 said that as a resource-rich state Ondo has no reason to have the extremely high poverty incidence level of 70 percent. Thisis a serious indictment of the state government. There is poverty in the midst of unmatched but concealed wealth. This should not be so. It is high time that the political leadership in Ondo State stoke a reprieve to put everything she has to use in order to make her prosperous and create an economy that is practical, productive and people-centred. This is what the government of the All Progressives Congress (APC) is all about. How should this be done?

Judging by the current rudderless political leadership that has perennially missed out on maximizing resources, it is clear that for the Sunshine State to possess a shinning economy, she needs a leader steep in experience in the real practice of making things work; a leader with tenable substance beyond rhetoric. It is high time sentiments are abandoned in the consideration of leadership for this great state. The state needs an experienced leader with business acumen who understands how to leverage on the rich natural resources and the already existing but latent skills and talents of the people. In the past seven years especially, it is clear as daylight that not much has been done to practically use what the state has in order to take her place of pride among growing economies not only in the South-west but in the nation. The situation has become so bad that a recent report has it that Ondo State is one of the worst places to start a business. Apart from the political will needed to make things work in the state, Ondo needs a leader with the requisite experience and refreshing expertise in business to activate her rawness to practical wealth.

One of the ways to create a self-sustaining economy is by addressing the knowledge deficit amongst the majority of her citizens. There’s a mantra that says you cannot give what you do not have. This mantra simply underlies the truth that the grinding poverty and tasteless economic situation are directly proportional to what I call “ineffective education” that breeds ignorance and joblessness. The way it is right now in our dear state is that the totality of education is not strategically tailored towards our needs. And that is one of the reasons we rely on importing expensive expertise at the expense of our own human resources that only needs a new re-orientation, thus facilitating the economic growth of our state. One of the major ways to accomplish real growth is to “un-isolate” the classroom from the out-of-classroom learning environment in a structured way that integrates real life scenarios with curriculums in an effective way – the idea of schools without walls. Installing this method of learning will empower the people with the practical knowledge on how to look inwards, master the prospects of the wealth around them, and eventually become stakeholders and vital parts of a flourishing economy for self-sustenance.

We’re blessed in Ondo State with arable land well-suited for agriculture that it irks the mind to see this God-given endowment lying waste and untapped. In this era of oil doom, it is not only wise for government to embark on an aggressive agricultural initiative, but also the right and expedient thing to do to grow its revenue base and create wealth. Most of us didn’t know that when oil prices started to plummet in September 2015, the international price of cocoa rose by about 60% from its current price around the same time.It’s important to bring this point home by stating here that the African country of Cote d’Ivore and its 20 million people depend entirely on cocoa production and export. It’s the major source of earnings that sustains the country and its people. The population of our state is less than four million people, yet we’re still very poor. What is more, the world has gone green and organic; and there lies the wealth of any economy with the right leadership to fuel this new economic trend. Ondo State is uniquely positioned as a major agricultural hub and an alternative to the mono-product oil economy. Aside from merely encouraging people to engage in agriculture, a serious government must practically create the interest by heavily investing in a structure that suits its practice; a structure that ensures mechanization of the processes of creating organic products from the farm produce and their commercialization.

The aim of bridging the knowledge gap among the people of Ondo State (especially the youths) is to develop a home-grown expertise in place of ineffective education in order to create wealth. This is very pivotal in creating an economy that can sustain itself. We don’t really need to spend borrowed money to import the so-called experts to build our state when we can wisely spend less to develop ourselves and our raw materials, thereby developing our state. For instance, if the government formulates a policy to rehabilitate schools, specific industries should necessarily be set up to provide most of the materials related to rehabilitating the schools with at least 90% of our local content. Developing local expertise via practical 2-3 months trainings is an indicator towards the encouragement of Small Businesses that will serve as the key engine for growth and job creation. Small and Medium-scale Enterprises (SMEs) and Micro SMEs should be the key focus of any serious administration.

The amount of foreign investments in Ondo State needs to increase in place of borrowing. Most of the solutions listed above will need government funding to kick start, hence, the need to seek partnership with foreign investors. Getting investors into the state isn’t the main issue. The reason why the state hasn’t enjoyed foreign investments is the glaring lack of integrity within the ranks of the present government. Therefore, without mincing words, the way forward for our dear state is through a healthier, growing, debt-independent and self-sustaining economy.
- Abraham, a frontline All Progressives Congress (APC) wrote from Ikare, Ondo State..
August 26, 2016
OPS backs Buhari on emergency powers bid

THE Organised Private Sector (OPS) yesterday hailed President Muhammadu Buhari’s move to seek emergency powers to push his government’s planned stimulus for the economy.

According to the plan, the government is expected to send an Executive Bill to the National Assembly for Executive orders to tackle the economic crisis.

Manufacturers Association of Nigeria (MAN) President Dr. Frank Udemba Jacobs said if the request is granted and the measures are implemented, the economy will be repositioned and Nigerians will be better for it.

He said the economy would improve sufficiently, if mobilisation fee to contractors is raised from 15 to 50 per cent as being planned.

The Lagos Chamber of Commerce & Industry (LCCI) Director-General, Mr. Muda Yusuf, said the sense of urgency demonstrated by Buhari on the need to fix the economy is a welcome development.

He argued that though the details of the Economic Stabilisation Bill are yet to be released, a few indications of the government’s thinking can be deducted.

Yusuf observed that some of the issues can be dealt with within the authorities of the executive while others may need legislative actions.

Lending his voice to fast-track the procurement process to quickly activate the stimulus spending by government, he advised that it should be done without compromising the integrity of the procurement process.

According to him, like many other processes in government, the procurement process is very bureaucratic and not consistent with the current mood of the nation and so should be discarded.

On the proposal on the sale of public assets, Yusuf said it would require further discussions and scrutiny when the details are released.

On the Universal Basic Education Commission (UBEC), he said the proposal to review the UBEC Laws will surely help to unlock the liquidity, which the associated spending will provide.

He said: “The relaxation of the counterpart funding requirements for states is a step in the right direction. The decision to fast-track the visa issuance process is also a welcome development, as this will help to boost tourism and encourage investors seeking to explore opportunities in the Nigerian economy.

“I would in fact, go further to suggest that holders of passports of the advanced economies of the world should be given liberal entry into the country. I believe this will further help to boost the inflow of investments and support the hospitality industry.”

He however, cautioned on the need to approach the proposal on virement of budgetary allocation with tact.

“Virement proposal should be made so that it could be considered on a case-by-case basis. I do not expect that powers for budgetary allocation virement will be open-ended,” he added.

He advised on the need to streamline the duplication of agencies at the airports and bottlenecks in entry formalities into the country.

He asked that the move should be extended to the seaports to reduce transaction costs at the ports and also streamline the number of agencies involved in cargo examination and release.

On the need for alternative sources of power, the LCCI boss said using gas to feed the power stations is a step in the right direction, though more expensive but desirable in the current circumstance.

He said the trade policy is a major factor in the current inflationary condition.

“It is important to review the totality of the current trade policy regime. Already, the citizens and businesses are contending with the consequences of the inevitable exchange rate depreciation.

This has, however, been compounded in many instances by high import duties, high port charges, Value Added Tax (VAT), among other. The impact of these on cost structures in the economy is phenomenal.”

He expressed regret that the economy is also contending with various import restriction measures which, he added, is fuelling inflation and worsening the poverty situation.

“A balance between the quests for self-reliance and the welfare of the citizens is imperative in the policy formulation process,” he added.

August 23, 2016
Any rescue measure for economy in order, says LCCI

Director-General of the Lagos Chamber of Commerce and Industry (LCCI) Mr. Muda Yusuf said last night that he supports any measure that will yield the needed result to fix the economy. He said the economy required urgent and emergency response to battle pervasive poverty and hunger.

He said: “We are in an unusual situation and we need to take drastic steps to fix the problems. The challenges facing the country now are multifaceted; there is the disruption in oil and gas sector due to militancy and insecurity in almost every part of the country. The government needs to urgently restore the hope of the citizens by coming up with plans to assure people that the pressure and pain they are witnessing now will not be forever”.

Yusuf said “it is time to think outside the box,” noting that whatever policy the president has been implementing in almost all sectors of the economy has not yielded the desired result.

August 22, 2016
Buhari seeks emergency powers to tackle economy
President to meet Saraki, Dogara

Bill to rescue economy ready

President Muhammadu Buhari will be seeking emergency powers from the National Assembly to push his planned stimulus for the economy.

The objectives of the action-plan on the economy, which is in recession, include shoring up the value of the naira, creation of more jobs, boosting of foreign reserves, reviving the manufacturing sector and improving power.

Government sources said the decision to seek emergency powers for the President was based on a proposal from the economic team headed by Vice President Yemi Osinbajo. The team reviewed the various policies so far introduced and how they have affected the economy.

The economic team, it was learnt, gauged the mood of the polity and decided that unless there is an urgency which some of the extant laws will not permit, “the recession may be longer than expected and Nigerians will not get the desired respite, which is the goal of this government”.

An executive bill titled: “Emergency Economic Stabilisation Bill 2016” is to be presented to the National Assembly when the Senate and the House of Representatives resume from vacation on September 12.

In the bill, the executive will be asking for the President to be given sweeping powers to set aside some extant laws and use executive orders to roll out an economic recovery package within the next one year.

Buhari will be seeking powers to:
- abridge the procurement process to support stimulus spending on critical sectors of the economy;
- make orders to favour local contractors/suppliers in contract awards;
- abridge the process of sale or lease of government assets to generate revenue;
- allow virement of budgetary allocation to projects that are urgent, without going back to the National Assembly.
- amend certain laws, such as the Universal Basic Education Commission (UBEC) Act, so that states that cannot access their cash trapped in the accounts of the commission because they cannot meet the counterpart funding, can do so; and
- to embark on radical reforms in visa issuance at Nigeria’s consular offices and on arrival in the country and to compel some agencies of government like the Corporate Affairs Commission (CAC), the National Agency for Foods Administration and Control (NAFDAC) and others to improve on their turn around operation time for the benefit of business.
The extant law on procurement does not allow contract award earlier than six months after decision. Part of this is a mandatory advertisement of the contract for six weeks. The economic team has found this to be unacceptable, given our present circumstance.

Although the president has the power to order the sale or lease of any government asset to raise cash, “the procedure is cumbersome and long”. The draft bill is meant to ease the process. The government source said about nine government assets may be leased or sold to generate around $50billion to shore up the nation’s foreign reserves and the value of the naira against the United States dollar.

The source said: “Nigeria may be broke at the moment but we are not a poor country, given our assets and capability.”

About N58 billion is trapped in UBEC’s coffers because the states cannot access it as a result of the key condition, which is the payment of 50 per cent counterpart funding. The government is seeking an amendment to the law so that states will pay only 10 per cent as counterpart funding.

The objective is that state governments will have access to cash to develop education. This will facilitate creation of jobs since contracts will be awarded for the projects.

As for contract awards, the government, by the provisions of the law, cannot mobilise contractors with more than 15 per cent of contract sum. This is considered to be undesirable by the economic team given the pace the government wants to move in turning the economy around and in the provision of critical infrastructure. The bill will seek to allow the government to mobilise contractors with 50 per cent of contract sum.

The move to get government agencies to fast tract their operations is to enable foreign investors to come into the country without the current bottlenecks.

Consular offices will now be expected to make visas available within 48 hours and visitors, especially tourists who intend to pick up visas at the entry point, will be able to do so.

Time wasting at the airport with duplication of agencies screening incoming passengers is to be eliminated. Those leaving the country should go without hassle.

For the power sector, the government plans to truck gas from source to the power plants to enable them get what they need for generation.

A government source said: “This may be more expensive but it is a price to be paid for Nigerians’ comfort”.

It was learnt that President Buhari will engage the leadership of the National Assembly before their resumption to solicit support for the bill’s quick passage.
August 22, 2016
FG to release N60bn for capital projects

Minister of Finance, Mrs Kemi Adeousn, said Federal Government was set to release N60 billion for capital projects to stimulate the economy.

Adeosun made this known on Friday in Abuja at an interactive session with newsmen, and said that the disbursement would raise funds already released by the government to N400 billion since May.

She said that contractors had been paid to return to work, adding that very soon Nigerians would begin to see the impact of the administration’s efforts and policies.

“So far we have spent N400 billion on capital, that is between May when the budget was signed and now; we are going for another capital allocation meeting where we are going to allocate another N60 billion.

“So, we are pumping money into the economy at a very rapid rate, but it would take a little time for the effect to be felt,’’ she said.

Adeosun disclosed that the administration was encouraged by some results it was getting.

According to her, states known for agriculture are going back to it and generating revenue from it.

She expressed optimism of bumper harvest of crops, and said that storage facilities like silos, were being put in place to avoid loss of any harvest.

The minister also said that for Nigeria to survive present economic situation, corruption had to be fought holistically and that infrastructure had to be built to create employment.

“Fighting corruption is fundamental and if we stick with that and all the money stolen or diverted is directed at projects that could grow the economy, we would recover,’’ she said.

She said that a tax committee had been inaugurated to overhaul the entire tax system in the country.

She, however, explained that the intention to tax luxury items was not a policy because there was no constitutional provision to tax the items.

Adeosun assured that the committee would seek ways to ensure that the right laws were put in place in that regard.

She said that the Joint Tax Board (JTB) was working to harmonise taxes that were overlapping among federal, states and local governments.

“It is part of the ease of doing business initiative because these are some of the things that cause businesses to close down.

“It puts one off and even in the Federal Government, we are working on various revenues and looking at who is the best agent to collect revenue.’’
The Permanent Secretary in the ministry, Mr Mahmoud Isa-Dutse, said that the media were very important tools to drive democracy and that partnership with them had made governance easier.

He also said that the media played a significant role in the Nigerian economy by interpreting government policies to the people and educating the public.

Isa-Dutse, however, advised the media to be positive in its reportage of the nation’s economy.

August 19, 2016