Nigeria's Strategic
Plan: Steps to Economic Powerhouse
By the Year 2020
By
Emeka Chiakwelu
strategist@afripol.org
The vision of transforming
Nigeria's economy by 2020 must be strategically framed, rooted in sound
macroeconomics fundamentals and elucidated legal framework to accomplish
the targeted goal. Nigeria has come of age, and is now determined to
expand her economic frontiers and to invest in the populace. The
targeted year 2020 is the year Nigeria proclaims that she will make the
list of one of the greatest/best twenty economies in the world.
During the
inauguration of the President Yar'Adua, he echoed that Nigeria was ready
to emerge from shambles of corruption and hyper-mismanagement to take
her rightful place in the comity of nations. Nigeria must move forward
to build a prosperous and giant economy. There must be shift in economic
paradigm. Nigeria has so far achieved quantitative macroeconomic
fundamentals, but a lot needs to be done.
Emeka Chiakwelu, Afripol organization's Principal policy strategist has
offered strategic steps to be taken by Nigeria to realize her vision of
making club of the world's 20 biggest economies by the year 2020. (An
abridged version of the paper he delivered on United Nations Day in
United States of America).
Stabilization and convertibility of Naira: Nigeria must
have a stable currency, or her pursuit of a powerhouse in the global
economy will be a mirage. Although Naira currency is relatively stable,
it is weak and soft when you compare it to other major currencies like
dollar and euro. Presently Nigeria is having one of the lowest debts to
GDP ratio in the world. This is attributed to her recent payment of
foreign debts and the reasonably macro-economic stability she achieved
through economic reform measures. Nigeria does not need a volatile
economy with unstable exchange rates for that will precipitate low
investment. Though high unemployment and low per capita income presently
bedevil the economy, her economic indicators look bright.
The postponed Naira re-denomination must be revisited and carefully
implemented, for this will make the convertibility of Naira readily. The
convertibility of any currency remains basic to foreign exchange
transaction.
Tax Reforms: Taxes are very important to be left in the
hands of politicians. Seasoned bureaucrats and financial experts must be
used to setup sensible tax codes that are business friendly which
encourages economic development, especially in the attraction of foreign
investors. Government must look into lowering tariffs to encourage
inter-African business partners.
Tax codes must be made to encourage job creations and businesses.
Favourable tax breaks must be given to companies and businesses to
stimulate economic development. A modest progressive taxation must be
reintroduced and effectively implemented; the idea is to encourage
taxpayers to be stakeholders in the affairs of government. By paying
taxes, citizens' empowerment is established. Citizens will then carry
out oversight function by monitoring how their taxes are spent.
Prudent management of foreign
reserve: Nigeria's foreign reserve is hovering between (55-60)
billion dollars and such fund must not be allowed to lay dormant in the
foreign holding. A reasonable portion of the reserve can be invested in a
foreign market, to yield an appreciating return. Nigeria can learn from
Dubai and other Persian Gulf oil countries that have invested in the
western economies especially in the American Real estate and fiduciary
bonds. Government should assemble a committee of experts to manage the
reserve and invest some of the money in stable market overseas.
Diversification of the economy:
Nigeria has become responsive to the diversification of her economy, not
minding she has a long way to go. The country knows what to do, but
procrastination has always retarded her progress. Oil cannot continue to
be her only high yielding sector; agriculture must be expanded and
retooled. Investment must be made in research and development.
Nigeria's Image Management: Nigerian policy and decision
makers have not certainly explored the power of image making. The image of
a nation both abstract and aesthetic speaks a volume of the nation.
Nigeria must be able to tell the world that she is ripe for investment and
tourism without obstruction. No foreign institutions or countries can tell
the world about Nigeria more than Nigerians could do. Even if Nigeria rent
CNN, BBC, and New York Times, the primary and fundamental responsibility
of dissemination of news about Nigeria resides in the hands of Nigeria.
The country must have her own international mouthpiece to tell her stories
to the world, especially to the intended investors and the tourists.
Nigeria cannot afford to leave her destiny and future in the hands of
foreign media networks that see her as their fellow competitors. Nigeria
cannot afford to be NAIVE and NONCHALANT in the era of ruthless,
back-stabbing and cut-throat business world.
Solid social amenities: Social amenities must be present
so that she can make headway in industrialization and information
technology. Energy conservation and availability are central to modern
development. Basic infrastructures are the key to sustainable development.
Constant supply of electricity is the key to development.
Reform and Secured Property Rights: Citizens must be able
to utilize their properties to create further wealth and this can be
possible when rights of ownership are enshrined and guaranteed in the law.
Therefore, securing property rights will serve as catalyst for economic
prosperity.
Commitment to Democratic capitalism: Nobody is saying
that democracy and capitalism have no imperfections, but time and
experience have shown that they work and boost stability in any given
country. The major defects of capitalism - unemployment and inflation can
be controlled through sound fiscal and monetary policies. As for
democracy, it is the best for Nigeria because of her rich diversity.
Independence of Judiciary must be encouraged to the highest order, because
it protects and strengthens democracy. Again genuine electoral reforms
must be pursued and encouraged to make the electoral body independent,
stamp out lawlessness, intimidation and rigging. So that free and fair
elections will be guaranteed. A representative government enables every
group to participate effectively in the political landscape.
Government must encourage and promote free enterprise. Government must
also be alive in performing their responsibilities. These include the
protection of lives and properties. They should avoid tinkering with the
economy, and should allow the forces of capitalism (demand and supply) to
be the dominant economic determinant. While Nigerians must be pragmatic in
areas of foreign trade especially the protection of local jobs and infant
industries, but they should careful not block free trade which encourages
trade specialization and comparative advantage.
Securing Peace and security:
The most important function of any government is the protection of life
and property. A nation devoid of law and order will not be able to perform
such a necessary function and therefore her economic growth will be
hampered seriously. For Nigeria, the police force must be reformed, and
properly trained, equipped and handsomely paid. Courts must be allowed to
perform their duties without interference from any quarters.
Quantifiable
peace is necessary in Niger Delta, a verifiable peace rooted in truth and
compassion. Nigeria must sort and implement a comprehensive peace which
connotes optimal education, penury poverty reduction, provision of health
facilities to combat debilitating diseases in the country and to cut down
infant mortality just not in Niger Delta but in the entire country.
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