The presidential candidate of the Peoples Democratic Party (PDP), Alhaji Atiku Abubakar has unveiled his strategic steps to revive the Nigerian economy working with the private sector, if elected in the 25 February election next year.
His goals, which were presented to a private sector forum, organised by the Lagos Chamber of Commerce and Industry on Tuesday, were encapsulated in eight outlines which included what he called “a warm handshake with the private sector”.
Others included the restoration of investors’ confidence in Nigeria, private sector-led infrastructure financing, job creation and war against hunger, and fiscal restructuring.
Atiku said that a “strong, productive, and pro-growth private sector is needed to create wealth, generate employment opportunities, and help fight poverty”.
He said the Muhammadu Buhari administration has failed to demonstrate a strong commitment to private sector development. “For example, the several pledges it made to reduce its pervasive influence on the economy and promote private sector-led development remain unfulfilled”, he said.
The former Vice President then stated what his government would do differently: “We cannot overcome our economic challenges without significant reforms to re-structure the economy and to support the private sector to unleash its growth potential and play a key role in the economy. A strong, productive, and pro-growth private sector is needed to create wealth, generate employment opportunities, and help fight poverty.
“We will listen to the private sector more. Understanding the private sector and securing their buy-in when policies are designed will determine the success of our economic growth and development agenda. Through regular dialogue with the private sector, we will build consensus, improve trust between us and make new reform initiatives easier to implement and sustainable”.
On restoring investor confidence in Nigeria, Atiku spoke about 3 Cs – clarity, coherence, and consistency – in government policy, explaining that “nothing could be more threatening to investment flows than an environment that is full of policy flip-flops”.
He further said: “Our monetary and fiscal authorities will be better coordinated and shall ensure a stable macro-economic environment with low inflation, stable exchange rate and interest rates that will be supportive of businesses’ quest for credit. (Read my lips: a stable exchange rate, not one Naira to one US$ exchange rate!!!)
“We will allow CBN the independence to pursue its mandate BUT ensure that such policies are not detrimental to Nigeria’s quest for FDI and to Nigeria’s long-term growth. For example, we will push for a foreign exchange policy that encourages capital inflows and makes capital outflows less attractive to the investors.
“We will take tough and difficult decisions on security matters without fear or favour. Investment is a coward animal and is fearful of conflicts and insecurity”.
On infrastructure financing, the PDP presidential candidate said his administration would offer tax incentives, while a consortium of private sector institutions would establish an Infrastructure Debt Fund with an initial carrying capacity of US$20 billion. “This will be for the financing and delivery of large infrastructure projects across all sectors of the economy.
“We will establish an Infrastructure Development Unit in the Presidency with a coordinating function and a specific mandate of working with the MDAs to fast track and drive the process of infrastructure development in the country”, he stated.
He promised to lead Nigeria out of darkness by first declaring a state of emergency in the power sector “to underscore our concerns about the state of affairs in the sector”.
That, Atiku said, would be followed by a short-term measure that would deliver additional power capacity in certain key areas within the first year of his administration.
“Over the medium term, I will then go on to propose a legislation for the removal of the entire electricity value chain from the exclusive list and give states the power to generate, transmit and distribute electricity for themselves. One lesson we have learnt recently is that an industrial dispute with the FG in Abuja should not affect an industry in Lagos or a factory in Aba or in Kano or even an average Nigerian who just wants to get home, watch the news and sleep under a ceiling fan”, he assured.
In fighting poverty and creating jobs, Atiku said that his administration would within the first 100 days in office invest US$10 billion through an Economic Stimulus Fund “to prioritise support to MSMEs across all the economic sectors, as they offer the greatest opportunities for achieving inclusive growth”.
“Today, millions of Nigerians go to bed hungry every day. Nigeria must feed Nigerians! We will pursue an aggressive and innovative food production policy that will strongly boost farmers’ access to farm inputs. We will put farmers first”!
He also promised far reaching fiscal restructuring to improve liquidity and the management of the country’s fiscal resources through five “bold” steps. These include an immediate review of government spending with a view to eliminating all leakages arising from subsidy payments; stopping all fiscal support to ailing state-owned enterprises; and taking steps to improve spending efficiency by gradual reduction of government recurrent expenditures.
