Economic Confidential, April, 2009

FEATURES

G-20 Summit and Nigeria’s Dream

By Prince Ikeokwu

The realistic assessment of the real status of any nation in today’s global picture, without prejudice, lies not on the population, but rather on the strength of that economy. Despite the notion that nation building is a collective responsibility, it remains a fact that the growth and development envisaged by any country, including its sustenance, is the burden of its leadership.

It is no longer news that the meeting of the 20 largest economies to set the world on a more stable economic footing has become the focus of global interest. This gathering definitely, will continue to serve as a platform for countries outside the G-20 to appraise their performances and map out economic strategies to join their counterparts in the world’s decision making. Nigeria as a nation is not left out as all her plans are geared towards joining this league by 2020.

The World leaders, among other things, agreed to restore growth and jobs, repair the financial system and strengthen financial regulation, fund and reform international financial institutions to prevent future occurrences, promote global trade and investment, reject protectionism and to build and inclusive green and sustainable recovery.

This summit, no doubt remains very critical as it is aimed at saving the world from the worsening economic recession. Presently, there is a global anxiety on how and when the decisions reached would be implemented and its impact on the developing countries of Africa, despite the affirmation of the British Prime Minister, Gordon Brown saying “we have reached a new consensus to tackle global action together; we will do what is necessary to restore growth and job”.

According to media report, the final numbers agreed include: an extra $ 500bn for the IMF; $ 250bn for trade finance; $ 250bn in new SDRs; $ 100bn for the multilateral develop banks to lend to poor countries; and $6bn increase in lending for the poor countries by IMF. These imply that the proposals are in tune with the global economic realities, especially in developing countries.

Barely 11 yrs to go, many Nigerians are still skeptical about the reality of this vision. This perception as it were, has a direct bearing with the present level of develop and economic hardship, coupled with the development plans that failed to yield positive results in the past.

There is no doubt that we have felt the impact of the global recession, even before it took a deeper tow on world’s economy,  as our earnings from oil have declined sharply due to a combination of falling prices and production quota. This has made the government to take wide ranging measure to mitigate the impact, and to ensure that the actualization of our vision remains on course.

Appraising our short term goals, the 2009 budget was benchmarked at $45 p/b and a daily production of 2.292 million b/per day, with envisaged total revenue of N2.2652 trillion for the Federal Government, An aggregate expenditure of N3.1018 trillion. N283.65 billion for debt servicing, with a projected deficit of about N236.6 billion to be financed by a combination of sources, including outstanding signature bonuses, proceed from privatization and withdrawal of some accumulated reserves and borrowing.

My intention here is not to bore you with figures, but to ensure that you are acquainted with our financial projections in accordance with the short, medium and long term national targets.   

During the 2009 budget break-down a couple of weeks ago, the finance Minister Dr. Mansur Muhtar, said that the budget is focused on critical infrastructure and deliverables as well as diversifying the economic base of the nation as leverage to the development plans. But considering the current price of oil, some economists have expressed reservations on the effectiveness of this budget to put the nation on the fast lane of growth and development. 

At least, let’s acknowledge the effort of the Ministers of Finance, Dr. Muhtar, and his National Planning counterpart, Dr. Shamsuddeen Usman among others, who have been resilient on the vision 2020 programme. Several committees like the National Steering Committee and Business Support Group have been inaugurated, including the technical committee which has the mandate of harmonizing the goals of the vision 2020 with 7-Point Agenda. However, it is pertinent to note that the inauguration of these committees may likely not be sufficient if there is no political will to implement and sustain these programmes.

Contentious as it may sound, many believe that the re-branding project of the Information Minister, Prof. Dora Akunyili, is timely, especially as there is a consensus need for a change in our attitude and orientation towards making our nation great, while others are of the opinion that the project is a new method of singing another boring song. They equally suggested that the project will amount to a misplaced priority if power, Health, Education, Security, Electoral Reform, among others that will improve the welfare of the citizens, are not implemented to a satisfactory level.

Well, every person is entitled to his opinion. In as much as we can not dismiss these claims for lack of merit, we also can not afford to throw away the baby with the birth water or attempt to abort a preconceived idea. 

It is obvious that there is an endemic perception that nothing works in Nigeria, and will not work if salient issues like greed and corruption (in high places) are not addressed. The atmosphere is getting saturated; Nigerians are looking forward to seeing proactive measures that are capable of overhauling the entire system, to rejuvenate the confidence of an average citizen.

This is the right time to wake-up from slumber and accelerate development on a very top speed, to overtaking some already growing economies like India, South Korea and more especially South Africa which has already taken a centre stage in Africa. This country seems to be gaining more recognition in the comity of nations. No wonder it grabbed the ticket to host the world by 2010, despite her xenophobic actions against fellow Africans in the past. 

Time has come to realign our National Development plans and prepare a realistic document that will serve as a guide towards achieving our vision. This is the appropriate time to re-brand the concept of power and politics. Let’s believe in ourselves. With sincerity of purpose and all hands on deck, Nigeria will not only get automatic ticket, but also bid to host the G-20 summit in Abuja, by 2020. Did I hear halleluiah? And I say amen.

Prince Ikeokwu

princenwaoku@yahoo.com

Abuja.