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Economy | Politics

Roadmap 2023: Top Economic Priorities for the Next Government

Jun 06, 2022   •   by Ottoabasi Abasiekong   •   Source: WebTV   •   eye-icon 569 views

As the ruling party, the All-Progressives Congress, APC and other political parties round up their 2022 Presidential primaries this week, the task ahead for the next government comes to the fore.

 

This article highlights some of the core areas that should be a top priority for the next government, forming the basis of economic debates ahead of the 2023 general elections.

 

National Economic Planning

Nigeria has not achieved consistency and commitment in the 'National Development Planning' area. Historically, Nigeria started well and was ahead of countries like Brazil and India in planning. It veered off the path in the late 80s and 90s. With the recent 2021-2025 development plan, there is an opportunity to get it right in executing the details, which can stabilize the economy and lead the nation to prosperity.

 

It is expected that the next government will not discard it, which has been the bane of economic planning in Nigeria.

 

Completion of Infrastructure Projects 

The current administration has undertaken several critical infrastructure projects covering roads, bridges, rail and power. Some of the key projects include the Lagos-Ibadan Expressway, 2nd Niger Bridge and Mambilla Power Projects. For some of them, the government borrowed to fund the projects,  and there are uncertainties if they will be completed before May 29, 2023. 

 

If the timeline does not complete these projects, the next government should ensure the execution of the projects before embarking on new ones. 

 

A Systemic Anti-Corruption Framework

The recent signing into law of the Anti-Money laundering bill has strengthened the framework for tackling corrupt practices in the public and private sectors. This means the Economic and Financial Crimes Commission, EFCC and the Independent Corrupt Practices and Other Related Offences Commission, ICPC will have the required backing to do their job.

 

The next administration will have to adopt a systemic approach to anti-corruption that respects the rule of law and emphasizes strong institutions. 

 

A Level Playing Field for the Private Sector

Recently at the 2022 edition of the Vanguard Economic Discourse, renowned business leader Mr. Atedo Peterside, the recipient of this year's African bankers lifetime achievement award, decried the fact that Nigeria does not have a level playing field for the private sector. 

 

According to him, the system favours a few in areas like foreign exchange allocation. If Nigeria's economy is to grow inclusively, there is a need for a level playing field for businesses. Government should be transparent in the waivers, licenses, and foreign exchange allocation, which is an essential message to the next President.

 

A Sound Economic Team

The seriousness and commitment of a government to transforming an economy are manifest in the strength and quality of its economic team. 

 

The Next President should appoint a Chief Economic Adviser from the first day in office. Within three weeks, a cabinet with experienced and competent economists, technocrats, administrators, scholars, and business leaders should be named. 

 

Portfolios like Finance, Budget and National Planning, Industries, Trade and Investments, Works and Housing, Digital Economy, Transportation and Power should be managed by people with competence, exposure, character, requisite skills and knowledge. They must be patriotic and ready to move the nation forward.

 

Fast-Track Liberalization and Financialization of State Enterprises & Assets Through the Capital Market

Renowned Nigerian economist Dr. Ayo Teriba has highlighted one of the significant issues in the Nigerian state. Teriba noted that since Nigeria's independence, no national asset or state-owned enterprise (SOE) has been financialized through the capital market. There is a window of opportunity through the Nigerian National Petroleum Corporation, NNPC, but the Next President must demonstrate the political will to implement the process.

 

All eyes will be on the next government if it will seize the opportunity or waste another opportunity to create value from our national assets and enterprises.

 

Support a Robust Sovereign Wealth Fund

Dynamic countries today invest heavily in sovereign wealth funds, saving up to provide buffers and support critical projects that can unlock economic growth. 

 

Nordic countries and Gulf nations are known for substantial sovereign wealth funds (SWFs). Nigeria cannot boast of a SWF worth $4bn. One positive is the establishment of the National Sovereign Investment Authority, NSIA, which has taken several steps to support healthcare, agribusiness, and infrastructure, amongst others. 

 

It will be nice to know if the next President will prioritize boosting Sovereign Wealth Fund and work to galvanize the 36 state governors to support the drive.

 

Investing in Education and Healthcare 

Skills development, a significant increase in research funding, and upgrading of the infrastructure of Federal Universities, Polytechnics, Colleges and Unity Schools should be a top priority for the next President, alongside an annual increase in budget allocation to the Education sector. 

 

For healthcare, the partnership with the Private sector in improving the infrastructure of the Federal Medical Centers, Teaching Hospitals, Primary Healthcare centers and activities in the Medical research institute should be given top priority.

 

Also,  a significant increase in the annual budget for the Healthcare ministry should be considered. 

 

The political will to expand the National Healthcare Insurance Bill signed into law by the current administration should be taken to the next level and improve healthcare access for millions of Nigerians.

 

Education and healthcare should feature prominently in the next government's economic planning and investment agenda  

 

Repositioning Nigeria Trade, Industries and Investments Ministry

There is a need for proper coordination in the activities of the Ministry of Industries, Trade and Investments. This current administration plans to roll out a revised trade policy long overdue for Nigeria. 

 

The next government should ensure that the ministry achieves significant reforms in the following areas; SME policy, Improved tariffs, an attractive tax regime, strategic export processing zones, pro-manufacturing policies and the review of the export expansion grant, EEG.

 

There is a need for a synergy with the Creative industry and ICT, which are two soft selling points for Nigeria.  

 

Going Big on Food Security 

The Russian aggression in Ukraine has disrupted the global food production and supply chain, and Nigeria is also affected by over 100 countries.

 

This brings to the fore the need for a strategic approach to achieving food security.

 

The recent $1.5bn Agriculture stability support for African nations should be accessed and utilized effectively by Nigeria to boost food production, storage, logistics and funding for the value chain.

 

There needs to be synergy across the value chain, and with the re-introduction of the e-wallet, agro-processing zones drive agriculture. A vibrant commodities market is critical for the sector.

 

Petroleum Sector Reforms

One policy decision that is very sensitive to Nigerians is the "Subsidy Removal on Petroleum Motor Spirit." In 2012, it met stiff resistance and 20 years later, an attempt to revisit the Nigeria Labour Congress jettisoned it.

 

This is one policy step that is inevitable for the sustainability of the oil and gas sector. With IMF's recent warning that subsidy payments could wipe off Nigeria's revenue earnings by 2026, the next government will have to be tact in its approach.

 

A timeline will have to be set for the 'Subsidy removal,' which should be done in phases. The trust and support of citizens must be earned before full implementation is carried out.

 

A lot can be achieved with transparency in the oil and gas industry, especially in approving licenses and 'local content promotion.'


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