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.
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.
Solomon Adeola
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-reg
source:naij.com
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