important question: who wants to kill
racy introspection? There is a
cacophony of voices telling the
Muhammadu Buhari administration to
close its eyes to the past, that given the
enormous tasks that lie ahead, history
and its consequences for our nation
should be the least of the government’s
preoccupation at this juncture.
I disagree. Let us keep a fiery memory
of the past so that we don’t repeat its
mistakes. Look back, look ahead. The
future must of necessity be built on the
foundations of the past.
The Conservative Party took power in
Britain six years ago from Labor. Check
the British press, they are talking about
Labor 24/7. Is anyone complaining?
Japheth Omojuwa, one of Nigeria’s top
three influencers seemed tasked in his
patience reacting to calls that we must
stop talking about the immediate past
administration in this country. “People
are still talking about who ran
governments in 1865 you want us to
forget those who left government last
year? (Expletive).”
Music icon Fela Anikulapo Kuti who
many agree was a philosopher
disguised as Afro-musician taught in
one of his songs that without knowing
where you are coming from, you won’t
know where you are going. Wise men
say that the empty can doesn’t
disappear by simply kicking it down the
road.
To avoid repeating the past mistakes,
Nigerians must come to terms with
what went wrong with the past, how
bad were things, what was done
wrongly, what the past government
should have done, before we come to
what needs to be done to right those
wrongs. Believe me, episodes from the
Jonathan era can fill books, and other
possibilities such as courtroom drama
thriller.
Against this backdrop, I sought to hear
our erudite Finance Minister Kemi
Adeosun on where we are coming from,
vis-a-vis the administration’s chosen
path to recovery and accelerated
growth. What is the administration
doing to revitalize the economy? She
spoke at length on the many measures
being put in place, many of which are
not glamorous. They, of necessity, come
with pain. Why should Nigerians be
asked to endure pains? Why should they
be asked to make adjustments?
PAST MISTAKES
The simple explanation is that the
economy was broken, and just as they
do the broken leg, you must bear the
pain of fixing it. The current situation
was caused by years of mismanagement
and corruption.
As explained by President Buhari again
and again, trumpeted by Madam
Adeosun and other senior officials, we
solely relied on oil, the price of which
was as high as US$140 per barrel.
Government simply reticulated oil
revenue through personal spending by
corrupt leaders, wasteful expenses and
salaries. This was done rather than
investing in what would grow the
economy.
Economies grow due to capital
investment in assets like seaports,
airports, power plants, railways, roads
and housing. Nigeria has not recorded a
single major infrastructural project in
the last 10 years. In short the money
was mismanaged. In addition to failing
to spend money on what was needed,
no savings were made by Government
unlike other countries like Qatar, Saudi
Arabia and Norway.
To compound the problem, the previous
government was borrowing heavily and
owed contractors, and international oil
companies. When this government took
over we had accumulated debt back to
the level it was before the Paris Club
Debt Forgiveness.
All these factors were building up to
Nigeria heading for a major crisis if the
price of oil fell. Nigeria did not have
fiscal buffers to withstand an oil shock.
The oil shock should and could have
been foreseen. These are matters that
both the Emir of Kano, Muhammadu
Sunusi 11 and Professor Chukwuma
Soludo, both them eminent former
Central Bank Governors had occasions
to warn the government of the day
about, but they were clobbered. The
dire warnings were written all over the
wall, but they were ignored by Nigeria’s
economic managers.
What should they have done?
They should have had the courage and
vision to do as the present
administration is doing through the
Economic Team, the Ministry of
Finance under Madam Adeosun and the
various agencies of the state to envision
a better future by first of all fighting
corruption. Look at what a civilian
administration is today doing to
military, investigating their finance and
accounts that the military could not do
to themselves.
See what the current administration is
doing sanitize the huge salary bill by
eliminating payroll fraud. So far, the
federal payroll has been rid of about
40,000 ghost workers. More than eight
billion Naira stolen monthly has been
saved. We are also saving on wasteful
expenses like First Class Travel and
Private jets for official trips.
The federal government is not limiting
the reforms to the center but forcing
State Governments to reform their
spending and build savings or
investments. Government is also
increasing spending on capital projects
especially on infrastructure needed to
make Nigerian businesses competitive
and create jobs. The administration is
at the same time blocking leakages that
allowed government revenues to be
siphoned into private hands.
Diversification
Currently, there is focus on key sectors
( apart from oil) that can create jobs
and or generate revenue such as
Agriculture, Solid Minerals and
Manufacturing. If these things had been
done when the oil price was as high as
US$140 per barrel, Nigeria would not
be in the current predicament. We
would not be suffering now if we had
no cash reserves but we had regular
supply of power, a good rail system,
good roads and good housing.
Now that the oil has fallen as low as US
$28 per barrel, it is very difficult to do
what is needed but they must be done
to save Nigeria. There is no other way if
we want to be honest. If PDP were still
in power they would have continued
deceiving people, by borrowing to fund
stealing and wastage and the problem
would have simply been postponed for
future generations to face.
The truth
There are many who say that this
Government’s economic strategy is
unclear whereas the previous
government seemed well co-ordinated. I
will make the confession that we, the
officials hired to communicate
government policies, that includes
myself, have not done as well as we
should have.
The truth is that more than any other
time before, there is a clear direction
and strategy for achieving growth and
development. Revisionists may not
agree, but the truth of the matter is that
the previous administration only had
one issue, which was how to spend
money ( oil revenues and borrowed
money).
As mentioned earlier this spending was
focussed on the wrong things and even
though the economy seemed to be
growing it was not sustainable, it was,
as described by Minister Adeosun, a
classic “boom and bust”’ driven solely
by the oil price.
Unemployment was and remained high
(never forget the NIS jobs that exploited
thousands of desperate graduates in a
scam that was used to fund house
purchases in high brow areas and
claimed so many lives)
Inequalities were growing (our then
President boasted about Nigerians
having the highest number of private
jets when most Nigerians could barely
afford to eat).Terrorism and social
unrest were growing. Real development
was lacking. As soon as the oil price fell,
these vulnerabilities were exposed.
From its records so far, this
administration is trying to reset the
Nigerian economy and ensure that it
attains its potential and is diverse and
resilient. We are doing this at a time
when the global economy is in crisis
due to the oil price collapse. Even rich
nations like Saudi Arabia are
experiencing problems.
The Government is people- oriented,
focussed and wants the economy to
grow in a way that will create a more
stable future which is not dictated by
world oil prices ( over which we have
no control). No more boom and bust
( thanks Minister Adeosun).
Our policies
Nigeria wants to take responsibility for
its own destiny, therefore our policies
will ensure that Nigeria returns to
growth in a sustainable manner. No
more dependence on oil. Every part of
Nigeria has a role to play in
contributing to our growth. We will
create an environment where people
can thrive and where business can
grow.
To this effect, all relevant agencies have
been reoriented to: Focus government
spending on infrastructure which will
create jobs and opportunities for
Nigerians across a number of sectors
( not just oil).
Ensure that we reduce our reliance on
oil by developing other revenue streams
such as taxes, efficient customs
collections and other government
revenues. Develop key sectors in which
we have comparative advantage.
Encourage development of agriculture
to ensure food security for our huge
population. Develop petro-chemical
industry on the back of the oil industry.
Develop solid mineral extraction and
Develop light manufacturing to provide
locally made basic needs and reduce
importation. If you are an official of
this administration and a mixer, that is
someone who mingles with citizens high
and low, a charge you are forced to
defend is that this Government seems to
be bringing austerity and suffering to
the people. Blame not, Buhari.
The current pain is due to the
mismanagement of the past. What
Nigeria is currently experiencing was
inevitable. This government is simply
being honest with the people instead of
piling up debts and concealing the truth
by pretending all was rosy. This
government believes that Nigerians
deserve to know the truth.
People stole unbelievable amounts of
money. The kind of money some of
these ex-officials hold is itself a threat
to the security of the state. Since it is
not money earned, they feel no pain
deploying it just anyhow to thwart
genuine and government good efforts.
What we are doing
Sadly, even that which was not stolen
was wasted. Government coffers were
left empty, with huge debts unpaid and
unrecorded (this government is working
to quantify the amount owed). Even the
current high food prices can be traced
to past deceit.
For example, The previous government
purchased fertiliser in 2014, worth
N65Bn and left the bill unpaid. In 2015
the suppliers could not supply fertiliser
which resulted in a low harvest,
shortages and high food prices. This
government had to pay off the debt so
that the suppliers could begin to supply
fertiliser again. Across Nigeria a green
revolution is occurring as Nigerians are
going back to the farms, from rice in
Kebbi and Ebonyi to Soya and Sesame
in Jigawa and Kano. At the same time
Nigerians are looking inwards to
identify commercial opportunities from
agri businesses.
Most of our road contractors had not
been paid since 2012, many of them
had sent their workers away adding to
the unemployment problem. This
government has released capital
allocations in the last three months that
is more than the whole of 2015. In 2015
Nigeria spent a paltry N19Bn on roads,
in three months we have spent N74Bn
and we are already releasing more.
In the transport sector in 2015,
government spent just N4.2Bn we have
spent N26Bn with more to follow. We
are starting a concession that will
revive our old rail system for freight,
whilst we build a new high speed rail
system. Moving heavy goods by rail will
reduce our transport costs which will
reduce food prices and will save our
roads from damage from heavy loads.
Government will embrace the private
sector through PPP, concessions and
other collaborations to deliver services
and infrastructure efficiently.
Nigerians expected a lot from President
Buhari and are right to have done so.
Many feel disappointed. While much of
this warranted, a lot more is arising
from opposition politics. A man who
has promised good things is being
accused of failing to use the palm to
cover the sun or that he is unable to
stop the rain. Nigerians are right to be
disappointed but they must direct their
anger at the right quarters. The bad
management and corruption of the past
are firmly to blame.
This government is fighting corruption.
It is working hard to do things right
and do them in a manner that will
endure. No government has ever
considered the poor like this one. Under
the current budget, the administration
devoted N500Bn for social intervention
programmes for those who need and
deserve support.
There are also programmes for
affordable housing with mortgages
which will transform thousands from
tenant status to home ownership.
Let’s look ahead
Any process that will endure, must
involve some pain but things will begin
to improve. There is always a time lag
between policy and effect. That is why
the bad effects of past policies are
manifesting now. Similarly the positive
impact of the work being undertaken to
fix Nigeria’s problems will soon begin
to show and we will emerge from this
period stronger, wiser and more
prosperous.
There is hope for Nigeria, a hope that
was previously clouded by corruption,
greed and lack of focus. Nigeria is
starting over and everyone has a role to
play. Look back, look ahead.
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