The 2019 federal budget has been submitted to the National Assembly for scrutiny and approval. Looking back at the economy in the last few years, there is no doubting the fact that government’s efforts to turn around the economy, especially since the Muhammadu Buhari administration came some three and a half years ago, have not been too successful, ostensibly because of its reliance on the oil and gas sector for most of its earnings. Yet, it is well known that vagaries in the oil market make it an unreliable factor in budgeting.
The country went into a comatose called recession. It later bounced back and has not achieved much. In fact, as hard as the government worked, the country’s GDP growth has been below 2 per cent almost two years after the country rebound from recession, an indication that there is a need for a radical change in the government’s approach to handling the economy.
Over the years, the country has depended largely on importation of all manners of goods, be they agricultural, manufactured, consumer and industrial. This has led to the constant drain on the country’s foreign reserves, resulting in a terrible weakening of the Naira, the nation’s currency, closure of thousands of enterprises, creating unemployment, reducing its Gross Domestic Product and terribly slowing down the ability of the country to achieve its much desired robust economic growth and development.
The country does not need most of the foreign loans that it is taking. Instead, Nigerians must embark on export of all exportable products, be it agricultural or industrial. By so doing, there will be surplus of foreign exchange accruing to the country’s coffers and that will obliterate the need for foreign loans
As the country’s economy continues to suffocate under over dependence on imported goods, it has become imperative for the country to dramatically change its approach to achieving quantum leaps in growth and development if Africa’s leading economy is to remain in reckoning in growth and development and also stop or, at least, reduce the massive exodus of its professionals overseas for greener pasture.
Henceforth, the country must have the right policies that will induce people to work hard and also encourage inflow of foreign investments into the economy. Apart from having conducive environment that will attract foreign investors to invest in the economy, the political environment must be stable. No investor will invest in an economy that is under terrorist attacks and where there are deep disharmonies among the population.
In a world where the quantum of a country’s foreign reserves determines the strength of its currency and the respect it gets in the international community, the country must aggressively build up its foreign reserves. Doing this requires that Nigeria must produce for export. That was the route taken by India and China, two countries that are friendly with Nigeria and which Nigeria must copy to leap forward in its efforts to achieve accelerated growth in economic growth and development.
Consequently, the country does not need most of the foreign loans that it is taking. Instead, Nigerians must embark on export of all exportable products, be it agricultural or industrial. By so doing, there will be surplus of foreign exchange accruing to the country’s coffers and that will obliterate the need for foreign loans.
Of course, those producing for export too will be producing partly for the local market. So, there will be more than enough food to feed the population.
Also, the government must ban the importation of any product that can be produced within the country, be it agricultural or manufactured products. This will stimulate local production of such items and will provide jobs for millions of Nigerians.
In addition, the government must prioritise investment in science and technology. It must ensure that modern technology for tilling and cultivating land are produced within the country and sold to Nigerians and other countries in the ECOWAS market. Also, all supermarkets must ensure that the production, processing and supply chains of all items they sell are within the country and no more from outside the country. By doing this, the country will conserve foreign exchange.
Governments at all levels too must henceforth patronise locally made products. They must ensure that all products being produced in Nigeria whether for the local or foreign market must be of high standard and must stand the test of comparison with other foreign produced goods. Also, every Nigerian firm with over 20 staff must have a research and development department that will always be researching into how to improve the quality of the organisation’s products to meet international standard.
Nigerian-owned companies must be preferred in contract awards. Where no local firm can do the job, it must be given to a consortium of Nigerian and foreign firms. That way, Nigerian firms will quickly acquire the necessary experience. Also, governments at all levels must commit to this vision and get the buy-in of the Organised Private Sector. This policy, if well implemented, will lead the country to its Eldorado.
