Business
‘Low Production, Manufacturing, Bane Of Nigeria’s Economic Growth’
Minister of Budget and National Planning, Mr Udoma Udo Udoma, has blamed the slow growth of Nigeria’s economy on weak production and manufacturing sector.
Udoma told members of a civil society group, The Situation Room, in Abuja, that economic downturn had made the Federal Government to focus on the fundamentals of issues frustrating the system.
According to him, the government noted these factors and planned the 2017 Budget to address the challenges and restore the economy to the path of diversified, sustainable and inclusive growth.
“The flaws with the Nigerian economy is simply not producing enough, not growing enough, and not manufacturing enough.
“We simply were not producing; we were just consuming and that was the fundamental flaw and crude oil simply papered it over.
“So, in any way, it is an opportunity for us to go back to the fundamentals. Ethiopia is growing at 10 per cent a year and has been doing that for the last 10 years; it does not have any crude oil.
“It went back to the basics and those basics are agriculture and manufacturing and services, and so, we just have to go back to those basics and get it right.
“Our approach to the 2017 Budget is the need for Nigerians to go back to those basics to create the environment for production,’’ he said.
The minister said that the government planned to redirect the economy with its Economic Recovery and Growth Plan (ERGP) based on three strategic objectives to restore and sustain growth.
He said that other plans were to invest in the people and to build a globally competitive economy by focusing on agriculture, energy, job creation, improved capital development and improving the business environment.
He urged Nigerians to pay taxes “because at the moment Nigeria did not have enough revenue coming to the government from taxes”, adding that tax collection stood at just six per cent of Gross Domestic Product (GDP).
Udoma said that most countries’ tax collection stood at over 20 per cent, with average for Africa at16 per cent in GDP, and insisted that Nigeria had to work hard to get more revenue.
He said that people believed that Nigeria had a debt problem, but explained that what the nation had was revenue problem “because with enough revenue the current debt will be manageable.
The minister said that one of the fastest ways of getting the economy to turn around was through agriculture because Nigeria had both manpower and land.
He urged Nigerians to grow enough yams so that the country could export raw and processed yams by taking advantage of the demand.
“All this is about growing what we eat and produce what we consume; so, let us work hard to achieve that.’’
He said the government had also put plans in place to encourage industralisation and had also made plans to enhance its transportation so as to make Nigeria the engine for production in Africa.
On her part, Mrs Zainab Ahmed, Minister of State for Budget and National Planning, said that Nigeria was overly dependent on consumption.
She, however, said that consumption in itself was good because it indicated that the country had a good market.
Ahmed said that the challenge Nigeria had was that it was dependent on consuming imported goods “which is our foreign exchange problem”.
She expressed hope that with all measures the government had put in place, the nation would move away from being import-dependent in consumption to consuming locally-produced goods.
“We need to collectively begin to speak about the fact that our population is growing at the rate of 3.5 per cent and this does not add up.
“It means that our growth is not catching up with the increase on our population; that is a problem that we need to begin to solve,’’ she said.
The minister urged CSOs to lead the discussion on how to address the population growth and also undertake an exercise on funds spent on all sectors, both at federal and state levels.
In his contribution, Director-General, Budget Office, Mr Ben Akabueze, urged Nigerians to help in monitoring the 2017 Budget for proper implementation.
The Nigerian Communications Satellite Limited (NIGCOMSAT), the country’s satellite operator, has called for immediate promolgation of policy action that will enable the country to harness the potentials of Artificial Intelligence (AI).
NIGCOMSAT, also warned that Nigeria risks missing out on Africa’s projected $1.2trillion share of the global AI economy by 2030.
Managing Director of NIGCOMSAT, Nkechi Egerton-Idehen, disclosed this in a statement issued at the weekend following her participation in the Meeting of the National Council for Communications, Innovation, and Digital Economy.
“Artificial intelligence is reshaping industries, economies, and societies worldwide, with projections that it will contribute up to $15.7trillion to the global economy by 2030. Africa stands to gain $1.2trillion of this if the right policies and innovations are in place”, Idehen said, citing a PricewaterhouseCoopers report.
The NIGCOMSAT MD underscored the transformative potential of AI in agriculture, highlighting its applicability in Benue State, widely regarded as Nigeria’s “food basket.”
According to her, machine learning tools could revolutionize agricultural practices by improving pest detection and optimizing planting schedules using satellite imagery.
“AI offers us the chance to not only flourish economically but also to achieve food security. However, we must ask ourselves if we are prepared to manage this technology responsibly”, she added.
Idehen also noted that internet access remains a significant barrier to AI adoption in Nigeria.
“For AI tools to be effective, basic digital infrastructure is essential. Addressing this gap must be a priority.
“AI is happening. We have the opportunity to manage this technology revolution responsibly, both in Africa and globally, through innovation and governance”, she said.
In August 2024, the Federal Ministry of Communications, Innovation, and Digital Economy released a draft National Artificial Intelligence Strategy, aiming to position Nigeria as a global leader in AI.
Corlins Walter
The Chairman of Emohua Local Government Council, Chief David Omereji, has said the council has so far spent over N1 billion for the electrification of communities in the area.
Omereji said this while addressing staff of the council at the council headquarters recently.
He said the move was part of his administration’s resolve to ensure peace and development of the LGA.
According to him, the Council spent about N29 million on monthly basis for the maintenance of the Emohua Local Vigilante group known as OSPAC, with each member being paid a stipend of N100, 000 monthly.
He diaclosed that 11 out of the 14 wards are currently enjoying electricity, while efforts are on to light-up the remaining ones.
“I also want to use this opportunity to inform the political class for purposes of records and for the understanding of the people that the Council under my watch have done more than enough”, he said .
The Emolga boss explained that all that have been achieved were through the personal effort of the Council, without support from anybody as rumoured in some quarters.
Omereji further reaveled that a number of other projects, including roads, fencing of schools, hospitals, courts premises, and reconstruction of some abandoned buildings at the Council Headquarters are being undertaken by his administration.
He enjoined the people of the area to support his administration’s drive to bring purposeful development to the LGA.
The Emohua Council boss, who reiterated his hatred for noise making, stated that his works would speak for him, and solicited the support of staff of the council and the entire people of the area.
He noted the fact that some people may not be happy with his achievements, saying that he would remain focused, while advising critics of his government to do so constructively with facts and figures.
King Onunwor
The Movement for the Survival of the Ogoni People (MOSOP) has raised some ethical questions over a Financial and Technical Services Agreement (FTSA) between Sahara Energy and West African Gas Limited (WAGL), an affiliate of the Nigerian National Petroleum Company (NNPC).
MOSOP said the agreement was not done in good faith, not in the interest of the Nigerian people, and did not follow due process.
Foremost Ogoni born activist and MOSOP leader, Fegalo Nsuke, who made this known in Abuja, weekend, described the Sahara-WAGL deal as fraudulent, deceptive and an insult on the intelligence and integrity of the Nigerian nation.
Nsuke called on President Bola Ahmed Tinubu to cancel that FTSA between Sahara Energy and WAGL, noting that the agreement is fraught with irregularities and deceptive.
“What Sahara and the NNPC did in the FTSA between Sahara and WAGL is shameful and depicts high level corruption in public service of our country.
“WAGL is an affiliate of Sahara and the NNPC. How then can Sahara go into an agreement with its own affiliate? It’s as good as going into an agreement with itself. This is deceptive and fraudulent”, Nsuke said.
He continued that “Sahara Energy is certainly not a company the Ogoni people want on their soil and we are calling on Mr. President, Bola Ahmed Tinubu, to terminate any deal between the NNPC and Sahara Energy over OML 11, and to allow for an inclusive arrangement that considers a fair treatment of the Ogoni people in the distribution of revenues from natural resource extraction on Ogoni soil.
“The last Ogoni Congress has been unequivocal on the Ogoni demand for justice and has given a clear path to resolve the three decade old conflict between all critical parties.
“It will be good to explore this path to peace and development for Ogoni and for our country”.
Nsuke accused Sahara Energy and the NNPC of frustrating the progress made by MOSOP to achieve a permanent solution to the Ogoni problem.
He urged a presidential intervention with deep consideration for a fair treatment of the Ogoni people in order to permanently address the problem.
He noted that Sahara Energy should give up on the Ogoni area to allow for an engagement in the interest of the country and the people.
Recall that MOSOP and Sagara Energy have recently been engaged in a row in what MOSOP describes as an unholy relationship between Sahara Energy and the NNPC over OML 11.
MOSOP expressly rejected Sahara Energy and called for a fair treatment of the Ogoni people in natural resource extraction in Ogoni.
It noted that Ogoni people, led by MOSOP, paid the sacrifice to take the oil from Shell, hence “the position of MOSOP must be taken into consideration in decisions relating to resumption of oil production in Ogoni”.