Financial experts and Development partners and members of the Organised private sector (OPS) on Monday tasked Nigerian government and policy makers on the need to put holistic legislations and policies in place to protect the private sector as part of efforts geared toward attracting required funding for infrastructure.
According to Doyin Salami, Professor of Economic at the Lagos Business School, who delivered the keynote address at the 1st anniversary of National Assembly Business Environment Roundtable (NASSBER), held in Abuja, about $3 trillion is required over the next 30 years to bridge Nigeria’s infrastructural gap, at an average of $100 billion yearly.
Salami who described the private sector as major driver of economic growth in other climes, noted that estimated sum of N31 trillion is spent yearly by Nigeria’s organised private sector compared with about N14 trillion spent by Federal and State Governments of Nigeria.
“Private sector fund is not only welcome, but become!es an imperative. Without the private sector’s money, we are not going anywhere,” adding that there is need for adequate protection of the private sector in line with international best practices.
He also tasked Nigeria’s policy makers at all levels to harmonise policies and programmes in sustainable manner, address the issue of pricing, policy somersault and fiscal and monetary policies especially high inflation rate adding that the current 17% inflation rate is harmful to the GDP and ongoing economic recovery plan.
On his part, Speaker Yakubu Dogara, who described the synergy between the National Assembly and organised private sector under the platform of NASSBER as a right step, reiterated commitment towards bringing Nigeria’s “economy out of recession, and stimulating long term economic growth that is inclusive and sustainable for the shared prosperity of all Nigerians.
“For the National Assembly, it was a road not travelled before, but we were willing to embark on this journey, not minding the risks, considering the promises it held. Looking back the last 12 months, NASSBER is but a success story of novel synergy, dialogue and engagement between the legislature, development partner, the private sector, the bench, and citizens.
“The National Assembly will continue to play a central role not only in governance but also ensuring that we deliberate and act on frameworks that will improve Nigeria’s business environment through the review of relevant legislations and provisions of the constitution.
“It is my firm conviction that in order to achieve the vision/mission and core value of NASSBER, its structure and operating model must be strengthened. I have taken cognizance of the array of formidable personalities who will constitute the membership of the NASSBER Committees to be inaugurated today and I have no doubt that they will provide the strategic guidance needed to move NASSBER initiative forward. Together, we are on course to having the law as a proactive instrument to promote development and, thus, influence and change our very realities,” Dogara who was represented by his Deputy, Yussuff Lasun said.
Richard Ough, Head of Economic Development Team, UK Department for International Development (DFID), who applauded the successes recorded so far through the passage of bills critical to improvement of business environment and cost namely: Secure Transactions in movable assets, competition and Transport bills.
For Nigeria to achieve the required investment and economic take-off similar to the countries like China, Indonesia, South Korea, he emphasized the need for holistic change of business environment model that can unleash unprecedented private investment.
“If we want the type of take-off that countries like Indonesia, South Korea and China have experienced to happen in Nigeria, then we are not talking about tinkering with policies at the margin. This is not about a few investment transactions. Nigeria does not need one or two more investment deals here and there – it needs wholesale change in its business environment model. Change that can unleash private investment at a scale unprecedented within Nigeria,” he urged.
In his assessment of Nigeria’s competitiveness, he observed that Kenyan’s companies thrive more than their Nigerian counterparts despite having strong markets.
While applauding moves by Nigerian Export Promotion Council (NEPC) towards implementation of the zero-oil strategy, the DFID representative, warned against adoption of introduction of policies that will hamper private sector competition.
“The second part of this report that stuck in my mind was around Nigeria’s competitiveness. It looked at evidence from Nigeria and Kenya companies and it found disappointingly, that historically Nigerian firms were on average 13% less productive than Kenyan ones.
“Nigeria has a string internal market and the temptation (particularly with high oil prices) is always to look inwards. To try and serve this internal market first, and where companies are not able to compete – put restrictions in place. In contrast, Kenya has experienced (perhaps by necessity) the discipline of exporting non-oil products (in their case agricultural and agro-processed goods) and this requires solving the competitiveness challenges their companies face.
“Won’t the pressure of competition, it is very easy to put off addressing the issues that are hindering your private sector. An extended period of low oil prices, has brought the erosion of one of the key international competitiveness barriers Nigeria’s non-oil private sector have faced. It is now with asking the question, whether the approaches such as Import Competing rather than Import Substitution may help Nigeria nurture a more dynamic and competitive private sector. We are already starting to see signs of how a non-oil export led model could become the driver of growth, and the work that the Head of NEPC is doing around the zero-oil strategy is commendable,” he stressed.
KEHINDE AKINTOLA & OWEDE AGBAJILEKE, Abuja
