Abdullahi M. Gulloma
Delay in the passage of the 2017 Appropriation Bill by the National Assembly would stall the implementation of the newly introducd Economic Recovery Growth Plan (ERGP), the federal government said yesterday.
Speaking to State House correspondents at the end of the weekly Federal Executive Council (FEC) meeting in Abuja, the Minister of Budget and National Planning, Mr.
Udoma Udo Udoma, said that the country would exit recession by the end of the year if the 2017 budget comes into effect in good time and the new government’s economic recovery growth plan implemented.
Udoma, who briefed journalists alongside the Minister of Information, Culture and Tourism, Mr. Lai Mohammed, and the Minister of Federal Capital Territory (FCT), Mr. Mohammed Bello, said that initiatives needed to get the country out of recession have been outlined in the economic recovery plan for this year.
“We look forward to the early passage of the 2017 budget so that we can fast-track the implementation of the plan,” he said.
“Many of the initiatives in the plan are reflected in the budget. With regards to the things we plan to do in the next four years, they are spelt out in details in the economic recovery growth plan but the key is to get this economy competitive so that we can diversify.
“We want to do two broad things, one is to restore oil production and harvest what we can get from that sector but diversify by making the economy competitive. So we would grow our agriculture, manufacturing, we will have value added in Nigeria and move from a consuming to producing nation, that is the thrust. We believe we have the will and determination to achieve that.”
Asked if he can be quoted that the country would be out of recession by the end of this year, he said: “Yes, we are determined to get the economy out of recession before the end of this year. And the 2017 budget is structured to do just that. So that is why we are anxious to get the budget passed so that we can begin the implementation and begin to take all the steps we need to get the economy out of recession.”
Of course, at the end of the minister’s speech, two key issues emerged – passing of the 2017 budget and implementation of the budget and economic recovery programme contents of the government, with the ultimate goals of reducing the nation’s level of dependence on oil and diversifying the economy.
Curiously, Nigeria’s economic aspirations have to do with altering the structure of production and consumption patterns, diversifying the economic base and reducing dependence on oil, with the aim of developing a sound economy.
Past governments have since independence in 1960, pursued the goal of structural changes without much success. At the onset, the agricultural sector, driven by the demand for food and cash crops production, was at the centre of the growth process, contributing 54.7 per cent to the GDP.
Then emerged the oil which industry came to serve as the main pusher of the economic growth and, since then, the economy came to be characterised by the boom and doom cycles of the oil industry.
Regrettably, since independence, the Nigerian economy, especially in the face of the nation’s rising population, has grossly underperformed, relative to its enormous resource endowment. Possessing the sixth largest gas reserves and eight largest crude oil reserves in the world, Nigeria’s economic performance has been rather weak and unreflective of its endowments.
Even more regrettable, some Asian countries, notably, China, India, Malaysia, Thailand and Indonesia that were far behind Nigeria in terms of GDP per capita in 1970, have transformed their economies and became major players on the global economic arena.
The major factors accounting for the relative underdevelopment of the country’s economic fortunes are political instability, lack of focused and visionary leadership, economic mismanagement and corruption. Resources were plundered, social values were debased and the levels of unemployment and crime rose astronomically.
Though since 1999 and before the current recessionary period, economic growth in Nigeria has risen substantially, growth has not been inclusive, broad-based and transformational. The implication of this trend is that economic growth in Nigeria has not resulted in the desired structural changes that would make manufacturing, as envisaged by Mr Udoma, the engine of growth, create employment, promote technological development and alleviate poverty.
Yet, that is the crux of the matter for any economic plan that does not have as its thrust the welfare of the citizens is bound to fail on its arrival. And, of course, many plans have failed and many more could go that way unless the present administration tackles the issue, exerts adequate political will and implements the newly introduced programme with zeal and determination.
No doubt, the authorities need to reverse the course of the Nigerian economy which is now import dependent with very little non-oil exports. It relies heavily on crude oil and gas exports with other sectors trailing far behind.
The economy is, therefore, susceptible to shocks in the oil industry. In recent times, these shocks have been caused by either developments in the international crude oil market or the restiveness in the Niger Delta region of the country, an issue that the present administration is trying hard to address.
Economic and social infrastructures, especially power are dilapidated. Poor corporate governance both in the public and private sectors became acceptable practice while corruption and inequity in income distribution came to characterise our general way of life. Although corruption is a global scourge, Nigeria appears to suffer particularly significantly from it.
Nigeria has earned huge sums of money from crude oil, most of which have been stolen or gone the way of corruption. The way forward for the Nigerian economy, thus, depends on the policies encapsulated in the budget and the economic recovery programme and how they are implemented.
Nigeria has earned huge sums of money from crude oil, most of which have been stolen or gone the way of corruption. The way forward for the Nigerian economy, thus, depends on the policies encapsulated in the budget and the economic recovery programme and how they are implemented
