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PAGE 8—SUNDAY VANGUARD, SEPTEMBER 18, 2016 Continued from page 7 with Nigerians over the down turn in the economy but was quick to add that the administration was more serious in its intention and resolve to turn it around. The minister said: “We sympathize with the people of Nigeria but what is more serious is our intentions, our resolve and plans to turn it around. We had said it before that we knew we were going to go into a very difficult period. We have not anticipated the impact of the much awaited crisis, which of course is built on our revenue which is down significantly. We have a credible plan and that plan is based on the need to invest in our infrastructure and each of the experts spoke on that, saying clearly that it was the only solution for Nigeria to take us out of this situation and we are working on that”. The retreat latter broke into six syndicate groups with ministers and permanent secretaries divided among the groups to examine the economy and suggest the way forward. Leaders of businesses in the private sector and consultants to government were also in attendance. Among the papers presented at the retreat were: “Weaning the Nigerian economy out of oil dependence”, by Dr Obadiah Mailafia, “Fiscal and Trade Policy options to get the economy out of recession”, by Dr Ayo Teriba. But to effectively wean the economy out of oil dependence, Dr. Malaifa, brought forward both short and long term suggestions to be applied by the government. Malaifa said: “As a short term measure, we need bold measures through the vehicle of a stimulus package and a people-based macroeconomic stabilization programme that will reboot growth and return the economy to the path of long term sustainable development. This is a fundamental prerequisite for any credible programme of long term diversification. We then discuss the key sectors for diversification, anchored on an agrobased mass industrialization strategy; arguing that such an ambitious strategy will not work without the concomitant accompaniment of its necessary foundations. “These foundations are an enhanced role for the private sector as the engine and locomotive of growth; more rigorous approach to implementation of energy and infrastructure development; skills, training and human capital development and enhancement of labour and productivity; and public sector reforms in the context of a reinvented and reimagined state that is smarter and more entrepreneurial.” Dr Teriba said, among other things, that the government should strengthen the synopsis on Fiscal and Trade Policy options to get the economy out of recession – getting the policies right: there is a clear way forward for Nigeria. He pointed out that although it was regrettable that inflation, devaluation and recession have dogged Nigeria’s economic news in 2016, they could have been prevented. But to get out of the dark tunnel, Teriba said the government should apply the following strategies to bring about a new lease of life: “These were avoidable, they should never have occurred, and remain easily manageable. Indeed the silver linings are the many useable, potent but yet to be used economic policy ammunition that are readily at the disposal of government: The CBN could ease its tight policy stance to give recovery a chance . Federal Government could break its own monopoly and let foreign investment flood into all infrastructure that could provide the big-push to boost recovery and also improve Federal and States’ fiscal situation. “It is also true that the severity of the current downturn will only spur us to pull •Udo Udoma 2017 Budget to focus on inclusive growth For long term success, it will be critical for all actions to be supported by a strong commitment and decisiveness from the government some or all of the available policy levers, preferably based on a convincing, holistic, coherent and wellsynchronized economic reform document that emphasizes supply push, rather than demand restriction or price adjustment. This is why I strongly believe 2017 may hold a sharply contrasting outlook to 2016, and most likely turn out to be a year of many green shoots for Nigeria, with numerous bright shining lights at the end of the tunnel,” he said. Adding a voice to that, Mr. Bismarck Rewane, who spoke on “Monetary and Exchange Rate Policy options to get the economy out of recession”, maintained that the current Nigeria’s state of affairs requires a robust plan backed by a comprehensive implementation effort to turn around the economy. Rewane said such swift action in at least three areas will help address Nigeria’s economic challenges: “In the fiscal/monetary sector, government should reduce interest rates to unlock resources tied to debt repayments that can be reinvested in •Kemi Adeosun capital expenditure; reduce VAT rates to lower fiscal burden on wider citizenry; and boost federal revenue capacity by improving on tax and Customs collection efficiency, selectively liquidate low priority assets, concession strategic assets, borrow at efficient prices. Improving Social welfare and stability by improving minimum wages in response to rising cost inflation; creating social safety net to address impoverished community and addressing security issues and controlling regional conflicts. Deepening Business Growth by launching pro-growth initiatives in under developed sectors to diversify the economy and stimulate growth in the real sector e.g. Agriculture, Mining, Manufacturing etc.); expanding credit supply from banks by reducing CRR to incentivize higher levels of lending and launching a fresh wave of sustainable asset relief programmes to improve Banking sector NPLs and unlock capital for future lending. “For long term success, it will be critical for all actions to be supported by a strong commitment and decisiveness from the government. Government should consider setting up dedicated teams to track targets/KPIs and ensure timely execution of key milestones. This team will also be key for managing public communication of key policies/ actions and harmonizing strategies advocated by the various ministries. “To address the risks, the government should employ a set of clear and decisive actions, along with a cohesive and consistent communication strategy for renewed and sustained confidence amongst key stakeholders. Similarly, a realistic and pragmatic mind-set must be maintained as positive results slowly emerge,” he counseled. On his part, Mr. Bode Agusto spoke on “How to grow output and productivity in the real sector”, advising that the government should be pragmatic in choosing the best model in growing key sectors of the economy - electric power, railways and oil and gas - given the stark reality that the external sector is weak and does not generate enough USD. Augusto reasoned that since government revenues are down with high debt service costs and the government finding it difficult to fund infrastructure spending without borrowing heavily, it should take steps to reduce debts to grow the economy. He said: “Government must therefore jump-start the economy by increasing infrastructure spending in a manner that does not increase debt and generate USD that will be used to plug both the current account deficit and fiscal deficit. In each of these key industries, government should be minority shareholders, allow the majority t manage the industry so that she can act as an independent regulator. Government should also encourage competition, provide fiscal and legal incentives to encourage investment and grow the tax base. Finally, as these businesses grow, they must be encouraged to list on the Nigerian Stock Exchange so that they can provide an exit for investors who want to sell and a store of wealth for those who want to buy,” Augusto said. 2017 BUDGET According to documents from the Budget Ministry, the key expectations of the 2017 budget will focus on reviving the economy and will emphasise on actions to return the country to sustainable growth, keep a cap on recurrent expenditure and focus on capital expenditure, especially infrastructure. According to the document, the ultimate target is the attainment of strong inclusive growth. Although Nigerians are very critical of the way the Buhari government is handling the economy, none of them can however accuse the government of not being transparent enough to admit that there is danger in the system, They have also been pragmatic in pointing the way forward. But the citizens must erase from their minds the fallacy that any government or nation like Nigeria that does not produce and sell enough goods and services for export to earn foreign exchange can easily recover from an economic slum even if it is producing oil on a sustained basis. Nigerians seem to have missed the universally acknowledged position that oil is an unpredictable item of trade, the price of which depends on external forces outside the control of the producers. No economy is nourished by heavy consumption of imported goods and services, without a strong manufacturing sector. Nigerians must also erase the notion that an economic team no matter how brilliant the members may be, could salvage Nigeria from its current dilemma if the different state governments do not begin to embark on provision of vital small scale industry production to engage their citizens and desist from ‘investing’ almost all their earnings on ‘security votes’. Economic theories and advocacy are clearly different from production and selling of goods to earn cash and provide jobs. That is the way the new thinking should go!
SUNDAY Vanguard, SEPTEMBER 18, 2016, PAGE 9 SHOWDOWN IN EDO EDO POLL War of words over political family to produce gov *Igbinedions cannot hold us to ransom – APC’s Charles Idahosa *We are bringing in PDP government – Lucky Igbinedion *Obaseki will do better than me – Oshiomhole •Governor Adams Oshiomhole •Charles Idahosa • Ize-Iyamu •Godwin Obaseki By Simon Ebegbulem, Benin-City The projects of the Governor Ad ams Oshiomhole-led administra tion remain the key assets of the All Progressives Congress (APC) in Edo State governorship election rescheduled for September 28. Anyone who has been in Edo in the past twenty years will appreciate the strides made so far in building infrastructures and beautifying the cities in the state by this administration. However, in this campaign, the opposition Peoples Democratic Party (PDP) has tried to remind the people that there is hunger in town and that infrastructures cannot guarantee good life for the people. But the PDP’s record during its stay at Osadebey Avenue (Govt. House) for ten years is not helping matters. The argument is that if the PDP had at least built one road, according to a APC leader, Charles Idahosa, the APC government would have started from a second road “but in this case nothing was met on ground as it is only now that Oshiomhole built the foundation for the future of Edo State”. It is, therefore, not surprising that the APC in the state made a mockery of the comments made by a former PDP governor of the state, Chief Lucky Igbinedion, during an occasion to celebrate the birthday of his father, the Esama of Benin, Chief Gabriel Igbinedion. The former governor had declared: “The next governor will come from our political family and that person is Pastor Osagie Ize-Iyamu. INEC can postpone the election but they cannot cancel it. I can assure you the result will remain the same. I made it clear before that the next governor will come from our political family. That has been my prayer. Come September 28, the margin of victory will be higher than if the election had held on September 10. Edo people should vote wisely. Be rest assured that Anyone who has been in Edo in the past twenty years will appreciate the strides made so far in building infrastructures and beautifying the cities in the state by this administration. However, in this campaign, the opposition Peoples Democratic Party (PDP) has tried to remind the people that there is hunger in town and that infrastructures cannot guarantee good life for the people the insults that have taken place since 2008 will stop. The brutalization of our psyche, of our women will stop. Unemployment of our youths will be a thing of the past. Lack of focus in education and sports sectors will be a thing of the past. We are bringing in a PDP government that can represent the people, build human development and industries”. This was the first time the former governor will openly speak about the election even though he had been meeting with some APC leaders at night, stressing to them the need to vote Ize- Iyamu. Meanwhile, APC leaders have since been repeating the former governor’s declaration on television to remind the people that the same persons who, according to them, ruined Edo during PDP’s 10-yr-administration are battling to come back. Idahosa, who is Political Adviser to Oshiomhole, responded to Igbinedion’s declaration. He said: “We are happy that at least the former governor is coming out to speak for his boy Ize-Iyamu in the open. We are happy because if you look at Ize-Iyamu’s programme, what he calls the SIMPLE Agenda, or his profile, you will never see anything associating him with the Igbinedions, he is never proud of them in the open but at the background he is their boy. We are aware that Lucky Igbinedion has been going round the homes of APC leaders, begging them to help Ize-Iyamu as Oshiomhole has been abusing his father, so they must not allow Obaseki to come in. But why is it that he does not come out in the afternoon to campaign for Ize-Iyamu, why at night? But we are happy he brought himself out when he now declared his support that the next governor will come from their political family. But the question you people should ask him, this family do they have two heads? The last time the family produced a governor for the state, what did they do with that opportunity? But I think the former governor does not know that the politics of Edo has changed. We have passed the stage where father, son and their god father at Uromi will hold this state to ransom, it will never happen. Lucky should come out and campaign for Ize- Iyamu in the open and not in his father’s bedroom. No amount of deceit will change the minds of our people and we cannot go back to Egypt. What they are thinking now is that the APC leaders they spoke to are working for them but they will be disappointed. Every APC leader they spoke to reported to the hierarchy of the party, both the people they promised heaven and earth. Lucky should ask why Ize-Iyamu is ashamed of associating with him in the open. At least our candidate Godwin Obaseki is proud to say he worked under Oshiomhole for seven and a half years, why is Ize-Iyamu not proud to say he started as Personal Assistant to Lucky Igbinedion? Our selling point is Oshiomhole’s works in Edo and we will beat PDP silly in this election”. In a related development, residents of Second East Circular, Benin City, and leaders in areas described as abandoned before the coming of Oshiomhole, backed the aspiration of Obaseki, saying their support was due to the work done in their areas by the APCled administration. The rich living in the Government Reserved Areas (GRA) may not be happy with the governor but the middle class and the poor in the densely populated areas of Isunhoru, Ihenye Upper Siluko, Second East Circular, Upper Sakpoba, all in Benin City, are happy with the APC and the Comrade Governor and that, to a large extent, gives Obaseki the edge over other candidates in this election. The joy of these residents was obvious last Tuesday, when Oshiomhole, the APC candidate in the Edo poll, Obaseki, inspected ongoing work at the second East Circular Road which is now a dual carriage road. A resident, Mr Yusuf Abdulrazak, who spoke on behalf of others, said, “We don’t encounter flooding here again. My car used to break down along this road, and I was always going to the mechanic for repairs which made me spend a lot of money. Now, I don’t spend money on such repairs anymore. You must finish this work that you have started. Last week, we organised a rally at this junction here, and we danced and jubilated. We are all for Godwin Obaseki, his government will be a continuation of the government of Oshio Baba which gave us this beautiful road.” Continues on page 12 C M Y K
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Sunday 18092016

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