As the presidential campaign opens this week, one issue that may draw traffic to the rallies of the candidates of the Peoples Democratic Party, Atiku Abubakar, and the Labour Party flagbearer, Peter Obi is their promise of robust economic reforms which they enunciated at different interactive sessions at the Lagos Chamber of Commerce and Industry (LCCI), writes Festus Akanbi
Economic analysts have predicted that when the presidential campaigns for the 2023 general election begin this week, more Nigerians would be interested in the economic blueprints of the leading contenders for the office of the president than whatever political initiatives they are bringing to the table.
This is because analysts think that with the shoddy economic performance of the current administration, there will be urgent pressure for the incoming administration to navigate the country away from the current path of economic disasters.
To the ruling All Progressives Congress (APC), the campaign period is also going to provide an opportunity to renew their mandate and tell Nigerians what they plan to do differently to take the nation out of the current economic woes.
Analysts believe some of the narratives that will shape campaigns, especially for the position of the president are the basic economic issues which have driven the common man to the cliff.
At every opportunity, Nigerians express shock at the paradox of recording lower revenue from oil earnings during a period of higher oil prices. The oil sabotage, the recourse to excessive borrowing at a very great cost, the unresolved issue of security threats and the attendant disincentive to farming and the high cost of living are issues which the various political gladiators will feast on when the lid on political campaign is removed this week.
So far, two leading presidential candidates have been able to table their economic blueprints before some representatives of the organised private sector. They are the candidates of the Peoples Democratic Party (PDP) and that of the Labour Party (LP), Alhaji Atiku Abubakar and Mr. Peter Obi, respectively.
Atiku Bells the Cat
Atiku Abubakar, who was hosted by the Lagos Chamber of Commerce and Industry (LCCI) at a forum for presidential candidates in the 2023 election, held two weeks ago, was able to give a clue to his robust economic policies with which he plans to take Nigerian economy out of the wood should he win the 2023 elections.
Highlights of his bold statements included his promise to resuscitate Nigeria’s ailing economy by launching a $10 billion Economic Stimulus Fund within his first 100 days in office if he wins the 2023 presidential election. Atiku said the fund would prioritise support to micro, small and medium-scale enterprises (MSMEs) that offer the greatest opportunity for inclusive economic growth.
As a former vice-president, under whose watch Nigeria was able to record significant breakthroughs on economic fronts, including debt reliefs, there is no doubt the politician has what it takes to arrest the attention of his audience mostly captains of industry and businessmen and women.
Analysts said he has a clearer understanding of most of the problems confronting the nation and as a successful businessman, he also has an understanding of the challenges frustrating investors in Nigeria.
He assured the nation’s captains of industry of a warm handshake, saying he would listen to the private sector more, restore investors’ confidence in the Nigerian economy, break the jinx of infrastructure finance, declare a state of emergency in the power sector, undertake far-reaching fiscal restructuring that would improve liquidity in the economy and stimulate growth, create jobs, wage war against hunger as well as ensure that over the medium term, recurrent expenditure should not exceed 45 per cent of the budget.
Atiku said, “Within the first 100 days in the office, I will create an Economic Stimulus Fund with an initial investment capacity of $10 billion to prioritise support to MSMEs across all the economic sectors, as they offer the greatest opportunities for achieving inclusive growth.”
Review of Government Spending
Fully aware of high recurrent expenditure and the cries from the camp of the organised private sector, Atiku vowed to slash government spending and check leakages by cancelling the fuel subsidy policy.
He said, “First, I will undertake an immediate review of government spending to eliminate all leakages arising from subsidy payments. With its current precarious fiscal position and daunting development challenges, can Nigeria afford to forego critical investments in education, health, security, etc. and channel scarce resources to subsidising the lifestyles of its elite?” Atiku asked.
Ending Financial Support to Ailing Government Enterprises
The former vice president said his priorities will include moving to stop all financial support to ailing state-owned enterprises.
“As with subsidy payments, by holding unto these underperforming enterprises, Nigeria is sacrificing investments in critical areas, including water, sanitation, and rural infrastructure. For example, the first phase in the rehabilitation of Nigeria’s refineries is expected to gulp $1.55 billion! I will sell of them,” he declared.
Atiku also stated his resolve to take steps to improve spending efficiency by gradual reduction of government recurrent expenditures.
“Over the medium term, recurrent expenditures should not exceed 45 per cent of the budget,” he said.
Support for Private Sector
Atiku also promised to focus on non-debt financing by promoting a private-sector-led infrastructure development fund for the financing and delivery of key infrastructure projects.
He added that his administration would be different, as it would support “the private sector to drive growth. We will establish a strong partnership in investing in infrastructure, creating jobs and income and in the fight against poverty. We will listen to the private sector more.”
He also promised to take immediate steps to slow down the rate of debt accumulation by promoting more Public Private Partnerships in critical infrastructure funding and identifying more innovative funding options.
Obi Unviels Economic Package
The presidential candidate of the Labour Party, Mr. Peter Obi, who took his turn at the LCCI forum, last week, told the leaders of the organised private sector that his administration would liberalise the entire power sector value chain, including transmission, to ensure a steady power supply if elected president next year.
Power Sector Reforms
Promising a robust power sector reform, Obi said: “Power is something everybody is worried about. I know very well that the federal government as of today has removed power from the exclusive list to the concurrent list. But I will go further than that. Our power problem today is that we have privatised generation and distribution but left power transmission untouched.
“For me, the first thing I will do to ensure a steady power supply is to liberalise transmission. This is critical if you are going to deal with our power sector. We will support the existing companies in the distribution and generation arms by ensuring that there is a dedicated gas supply which is one of their problems today.
“We will ensure that the generation, transmission and distribution are properly aligned. We will ensure clear certainty of policy and regulatory environment for them to operate. We will support them with access to funding that is attractive and deal with some tax incentives. We have to ensure that renewable energy is embedded in our power process.”
He said his administration would limit government involvement in the power sector to providing sovereign guarantees and policy clarity and certainty that would attract private sector investment.
Petrol Subsidy to Go
Obi also stated that his administration would be decisive in removing the petrol subsidy, tackling the security challenges afflicting the country and putting a halt to crude oil theft, pointing out that oil theft could not thrive without people in government participating in it.
He described the petrol subsidy as an organised crime and pledged to bring it to an end by encouraging the setting up of privately owned refineries.
He said: “Petrol subsidy is an organised crime. I have said that 60 per cent of the subsidy is corruption. That will be dealt with decisively. Secondly, we will aggressively start to ensure the promotion of local refining that is private sector driven and supply them crude oil in Naira to refine for domestic consumption.
More Actions Against Insecurity
He said: “If we come to government in 2023, one thing that we must decisively and aggressively deal with is the issue of security. Insecurity is the number one thing that is impacting Nigeria’s economic growth today. And I need to deal with it as quickly as possible.
“We need to overhaul the entire security architecture, including having multilevel policing involving the federal, state and community and equip them properly with modern gadgets.”
Borrowing to Fund Infrastructure
Obi, however, did not leave his audience in doubt that his administration would borrow and invest in infrastructure.
He said: “There is nothing wrong in borrowing. The difference is that if you borrow for consumption you will have a problem. But if you borrow for investments your economy will grow. The reason things are not working here is that we are borrowing for consumption.
“Debt is a component of development but it must be used efficiently and effectively for purposes that will bring value so that we get from the investment will be enough to service the debt.” As Nigerians continue to take stock of electoral promises, the expectation is that the 2023 elections will produce a leader capable of taking Nigeria out of the current economic woes.
