Dealing with challenges of diversifying the nation’s economy

Delegates were drawn from the 36 states and Abuja to appraise the initiatives already in place as well as chart a new course for the economy in line with the targets set in NEEDS and the Millennium Development Goals.

All the participants agreed that the Nigerian economy needs, as of necessity to move from a mono-product one; with sole dependence on oil to a diversified economy where other areas of the county’s economic potentials will be contributing to the GDP.

The non- oil sector of the economy which has been grossly untapped has potential to contribute significantly to the GDP if fully harnessed. Under the last Obasanjo administration, the non-oil export was billed to contribute at least 10 per cent to the GDP; a policy which the present government is equally committed to, and is vigorously pursuing as part of the seven point agenda of president Yar’ Adua.

Lagos State governor, Babatunde Fashola delivered a paper that chronicled the developmental programmes of the state towards achieving accelerated economic activities that would generate employment and ultimately reduce poverty in the populous commercial city.

Policy versus action

The host governor in his keynote address reminded the delegates that the desire to rank among the twenty top leading economies in the world by 2020 would hinge significantly on the ideas and policy initiatives generated by stakeholders at the forum which is the highest policy making body on the commercial and industrial sectors of the economy.

"Therefore, this National Council on Commerce and Industry can only add value if it begins to provide ways and means of implementing in concrete terms, the many ideas that have remained on the drawing board for so long. We cannot continue to simply reiterate ideas which non-implementation over the years has left us a nation of potentials rather than actualizsers", he tasked them.

Public Private Partnership initiatives

Lagos State which prides itself as the centre of excellence and the heart of the nation’s commercial activities that is home to the manufacturing sector, has anchored its development drive on PPP. Fashola described the programme as the engine that " drives our development programmes", adding that his administration would continue to provide the enabling environment and incentives to encourage and stimulate businesses in the state".

This is quite in total agreement with the philosophy at the federal level even as the commerce and industry minister called on the OPS to accept the challenging role acceded to it by the government as the engine of growth and position itself to drive the economy.

The state has a number of projects that have either been completed or in progress under this partnership regime. "The Lekki-Epe expressway is being expanded and modernized as the first toll road of its size and complexity in Africa to be constructed through PPP. We have equally secured foreign investment for the construction of the Eko Atlantic city; an ultra modern residential and commercial estate which will be built on land reclaimed from the Atlantic Ocean."

He said arrangement has been concluded for the commencement of work by another group of foreign investors on Energy City, another PPP initiative that will transform the Badagry corridor of the state into a major business hub for oil companies and other players in the global energy industry. And yet another major breakthrough has been recorded in securing requisite investment for the acquisition of and establishment of the Sunburn Yacht Hotel; a 105-room ultra modern floating hotel on the marina.

Power crisis

Over the years, the manufacturing industry has had a running battle with problems of infrastructure, rising overhead costs and frequent power outages as factors contributing to prohibitive costs of doing business in Nigeria which have hindered the growth of industries. The fact that power is critical to the nation’s ability to provide services necessary to attract investment for development needs no gainsay.

With the Federal government’s promise to treat the provision of uninterrupted power as an emergency, it is the opinion of many that the government move beyond mere pronouncement to actual demonstration of the will to take necessary decisive action to tackle power supply quagmire.

The emergency measure needed to take is to quickly complete the privatisation of the power sector. This should be done before the second quarter of the year. It is the considered opinion of many that only qualified and capable investors should be allowed to take control of the eleven distribution and seven generation companies into which the PHCN have been unbundled so that they can move to turn them around for efficient power generation and distribution. In order to find solution to the protracted crisis of darkness that is the greatest obstacle to Nigeria’s economic development through industrialisation, a number of options are to be considered.