Nigeria’s Sustainable Economic Growth: Enough of rhetoric, government should work the talk

Nigeria’s Sustainable Economic Growth:  Enough of rhetoric, government should work the talk

Chris Uba

Against the backdrop of the continued under performance of the Real Sector of the Nigerian economy and the emergence of the African Continental Free Trade Area (AfCFTA) the time has come when the government should begin to work the talk.

The real sector of the Nigerian economy has for years been persistently assailed by myriad of problems among them shortage of industrial raw materials and inputs; infrastructure challenges; inadequate linkage among industrial subsectors; and, administrative and institutional problems.

Put in another form, Nigeria’s economic potential is constrained by many structural issues, including inadequate infrastructure, tariff and non-tariff barriers to trade, obstacles to investment, lack of confidence in currency valuation, and limited foreign exchange capacity. And unless the government stops its empty promises, the country can scarcely make any headway in socio-economic development and sustainable growth.

The manufacturing sector is the hub of a vibrant national economy but in Nigeria, this sector has been neglected by the various administrations in the country. To be relevant, the sector must have the ability to harness the various available raw materials, process and transform them into marketable finished or partly finished goods through the use of human capital and other agents of production.

The finished goods and services thus generated contribute meaningfully to the national GDP and generate income and employment opportunities for the citizenry of that nation.

However, the Nigeria manufacturing sector is still hobbled by many challenges, ranging from near Non-existent power, inadequate funding, insecurity, poor infrastructures, irregular taxes etc. to poor business development strategies.

 It is therefore for these reasons that the government should be proactive in the economic development of the country. This is the time to work the talk; not the time for empty promises that have been the modus operandi of the leadership in the country. 

This advice is a response to  the position of  President Muhammadu Buhari  at the investiture of Dr Michael Olawale-Cole as the 24th president of the Lagos Chamber of Commerce and Industry (LCCI) on Saturday in Lagos State to the effect that  his administration  is committed  and ready to deliver to the Nigerian economy, a sustainable and inclusive growth.

Buhari,who was represented  at the event by the Permanent Secretary, Federal Ministry of Industry, Trade and Investment, Dr Evelyn Ngige said his administration was focused on addressing the challenges in the business environment.

This, he explained, would be achieved through relevant agencies of government which were already implementing various initiatives to accelerate the pace of recovery of the Nigerian economy. He said that the Federal Government was ready to collaborate with the private sector to bring to life the administration’s vision of sustained inclusive economic growth.

“This administration is focused on providing the enabling environment for businesses to thrive, as we understand the importance of the private sector’s role in providing job opportunities and developing critical infrastructure in the country,” the President said.

Governor of Lagos State, Mr Babajide Sanwo-Olu, expressed the state’s readiness to build stronger partnership with the chamber. Sanwo-Olu  who was represented by the Permanent Secretary, Ministry of Commerce, Industry and Cooperative, Mrs Olatokunbo Emokpae. said the partnership with the organised private sector was in its quest to create wealth and employment opportunities for its teeming unemployed youths.

Regrettably , in spite  the avalanche of promises and pledges by the government , the Real Sector of the Nigerian economy has remained prostrate. The sector has continued to contribute minimally to the nation’s gross domestic product because of the inclement environment fostered poor policy implementations and insensitiveness to the plight of the down-trodden Nigerians. 

The so-called  financial liberalisation  has a negative impact on manufacturing sector. This implies that credit to private sector was diverted to some unproductive ventures, rather than productive activities. Furthermore, poor infrastructure, high level of corruption, political and economic instability and high cost fund were found to have constrained the contribution of private sector credit to economic development.

 On the other hand, its positive impact on agriculture shows that there is an improvement in the agricultural sector since the commencement of financial liberalisation. The study concludes that efforts should be geared towards militating against the socioeconomic cum institutional factors that constrained the contribution of private sector credit to manufacturing output growth in Nigeria within the period under review.

The manufacturing sector is the hub of a vibrant national economy  but has been neglected by the various administrations  in the country. To be relevant, the sector must have the ability to harness the various available raw materials, process and transform them into marketable finished or partly finished goods through the use of human capital and other agents of production.

The finished goods and services thus generated contribute meaningfully to the national GDP and generate income and employment opportunities for the citizenry of that nation.

However, the Nigeria manufacturing sector is faced with many challenges, ranging from near Non-existent power, inadequate funding, insecurity, poor infrastructures, irregular taxes etc to poor business development strategies.

The most common breakdown of economic activity in a country is looking at three economic sectors: The primary sector, which involves agriculture, forestry, and fishing, the secondary sector, industry, that includes manufacturing, processing, or transforming goods, and finally, the tertiary sector, services, i.e. providing information or services to consumers, such as in IT, tourism, or banking. A country’s contribution to GDP, and thus its own economy, is easily visible when looking at the performance of these three sectors.

Sustained broad-based economic growth and poverty reduction are critical to its economic stability. Government should promote policies that  support poverty alleviation efforts  including  improved agricultural productivity and expand jobs in rural areas.

 It should also works to improve market access, increase the country’s energy supply, reduce obstacles to trade, and expand access to clean water in addition to developing  a policy environment for small businesses and expand access to market-driven vocational and technical training linked with private sector employment opportunities.