Osinbajo, Ambode list GEJ, OBJ sins, reveal big plans for Nigeria’s economic woes

– Osinbajo says it’s pathetic Nigeria benchmarks its budget on oil price

– Ambode says the previous governments at the federal level failed to take advantage of the oil boom to grow other sectors of the economy

– Both proffer solutions to Nigeria’s dwindling economy

The vice president Yemi Osinbajo and Governor Akinwunmi Ambode of Lagos state have identified measures to solve the economic challenges in the country.

Rendering the first keynote at the maiden edition of National Forum on Economy organised by Vintage Press Limited, publishers of The Nation Newspapers, Osinbajo blamed the nation’s economic challenges on oil dependence and corruption, adding that the time has come for Nigeria to look beyond oil and celebrate integrity over corruption.

Speaking at the event held at Lagos Airport Hotel on Thursday, April 7, Osinbajo said: “It is pathetic that a nation with over 170 million people benchmarked its budget on the price of oil. We must look beyond oil because it disturbs us from looking to other sector. In order to move the country forward, we must reduce the FG and state dependence on sharing revenue made from oil sales.

“The foundation for a strong economy demands that we have appropriate fiscal policies that will help the country that is arising from a very low rate of VAT and a low taxpayer’s base. We are focusing on increasing the country’s tax-payers base. We are committed to expanding the tax net.

“At the federal level, the implementation of the country’s 2016 budget will stimulate the economy rather than impose undue austerity on the citizens. For instance, 30% of the country’s budget has been earmarked for capital expenditure.

“Non-oil sources comprising company income tax, VAT and others are expected to contribute N1.5 trillion which is more than the estimated revenue from oil. This is unprecedented in the history of the country.

“Rather than extract and exporting, the country must take full advantage of the oil sector and entire value chain.”

He said the governments this year will focus on key areas such as oil and gas Agriculture, social investment among others to tackle the situation.

Osinbajo added that government would soon commence work on the Lagos-Kano and Lagos-Calabar rail routes, as well as 31 major road projects across the country, just as he stressed the commitment of the current administration to give a quantum leap to infrastructural development.

Governor Ambode in his remark said the nation’s economy was at a critical threshold and thus urged leaders to think outside the box to come up with creative innovations that will trigger economic growth nationwide.

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According to him, the previous governments at the federal level failed to take advantage of the oil boom to grow other sectors of the economy, adding that the fall in price in the international oil market coupled with many years of corruption has made the economy vulnerable.

He said: “It is very unfortunate that we wasted the golden opportunity to deploy the trillions of dollars earned from our oil exports to develop the critical sectors of the economy including power, agriculture, industries, solid minerals, transportation infrastructure among others.  No doubt, if we had done the right thing as some other oil producing countries did, keeping in mind that crude oil is a finite resource, we would not be experiencing the devastating effect of oil price crash on the scale we are experiencing it now.

“We are now being forced to do, with pains, what we should have done with ease years ago. The task of charting a new direction for the economy is not going to be a tea party. Various policy options must be identified and assessed on the basis of our current situation and needs.  Moving our economy forward requires thinking outside the box and doing things differently. We need creativity, innovation and the courage to take difficult and tough decisions.

“The leadership of the country at national and state levels must have the courage to take tough decisions and make sacrifices in the near term which will, in the long run, make our economy stronger and sustainable and, consequently result in prosperity across all regions of Nigeria.”

Vice President Osinbajo and other dignitaries at the opening of The Nation’s Economic Forum held in Lagos on Thursday. Photo: Solomon Adeola

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Recommending strategies to improve the economy, Governor Ambode said: “Prior to the oil boom era, Agriculture was the mainstay of Nigeria’s economy and contributed about 65% to the country’s GDP and represented close to 70% of total exports. Through farming, Nigeria was able to feed its population while major cash crops were exported to earn foreign exchange.

“From the cocoa and rubber plantations in the West, the groundnut pyramids and cotton in the north, to palm oil in the east; each region was identified by its economic areas of comparative advantage which were collectively harnessed towards ensuring food security and inclusive growth across the country.

“Given our current economic challenge, I believe it is time we take a cue from our old ‘playbook’ for a viable ‘game plan’ to revive our national economy. States and regions must once again begin to leverage on their respective areas of comparative advantage by establishing partnerships towards establishing inter-State or inter-regional commodity value chain. We must re-start inter-state/regional cooperation.”

Meanwhile, Vice president Osinbajo has suggested that political stability in the West Africa sub-region is what is needed to finally wipe out Boko Haram.

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