By Emegwoako C. Paschal
President Muhammadu Buhari is filled with optimism as investments made by the current administration in enhancing security is paying off across the nation.
Buhari praised the Nigerian military and other security organizations for making noteworthy strides in the fight against insecurity and for gaining momentum in minimizing obstacles.
The President, while speaking at the Nigeria International Economic Partnership Forum, which held in New York, on the sidelines of the 77th UN General Assembly, promised that the federal government would do more to enhance security in the country.
He acknowledged the security sector as an important factor in the flow of investment as well as the country’s overall economic and infrastructural development.
The benefits and drawbacks of investing in Nigeria outweigh the challenges, he continued, adding that,
“we will continue to give all necessary support to our security outfits to ensure they are able to tackle the challenge head-on.”
Buhari said, despite the global crisis brought on by the conflict between the Ukraine and Russia, the COVID-19 pandemic, and insurgency in some parts of the nation, Nigeria is on track to reclaim her rightful place in the world economy.
Buhari who was represented at the opening session by his Chief of Staff, Prof. Ibrahim Gambari noted that the quarterly GDP growth in Q1 2022 was primarily driven by the non-oil sector, giving credence to the government’s agenda of diversifying its revenue sources, while attributing the success of the country to the implementation of reforms intended to attract foreign investment plus sustained improvement in governance.
While stating that the administration was using the Integrated National Financing Strategy to address this, the President acknowledged that more needed to be done to enhance private capital flows into Nigeria through foreign direct investments and financing of infrastructure.
Regarding the non-oil sector’s contribution to growth, Buhari maintained:
“The agricultural sector, our most significant sector, has remained resilient in spite of security concerns, low irrigation, limited inputs, and challenges associated with legacy infrastructure, with strong food demand supporting growth.”
“Growth in manufacturing reflected stronger household and business consumption as a result of the resumption of economic activity and improvement in supply chains. Our service sector’s current growth looks promising.”
“Additional privatization, foreign investment, globalization, and competition will encourage growth and competition in the service sector and the economy as a whole. On the domestic front, the federal government is acting boldly, decisively, and urgently to address revenue underperformance and enhance our operations to make an investment in Nigeria very alluring.”
“Overall, more investment is needed in Nigeria’s economy. Contrarily, private capital flows into Nigeria, primarily in the form of foreign direct investment, have slowed down, making it more difficult to finance vital infrastructure and resource access projects. Our administration is already developing creative solutions to re-establish these flows.”
He explained that the strategy aims to integrate and align public and private financial policies, regulatory frameworks, instruments, and business processes with sustainable development in order to increase the financial envelope for the SDGs in Nigeria and increase the impact of financing on sustainable development.
Buhari continued by saying that the strategy would heavily involve the private sector.
The Nigerian National Development Plan (2021–2025) and the Presidential Power Initiative were two additional initiatives mentioned by the president to enhance the outlook for the country’s economy and development, he added;
“This comprehensive plan, aims to create 21 million full-time jobs and lift 35 million people out of poverty by 2025, setting the stage for the government to achieve its commitment to lift 100 million Nigerians out of poverty in 10 years. We project that an investment commitment of about N348 trillion will be necessary to achieve the goals of the National Development Plan (2021–2025).
“The government will spend N49.7 trillion (14.3 percent) on capital projects during the period, with the private sector expected to cover the remaining N298.3 trillion (85.7 percent). The Sub-National Governments’ capital expenditure is anticipated to be approximately N20.1 trillion, while the FGN’s capital expenditure will be N29.6 trillion (8.5%) of the 14.3 percent government contribution (5.8 percent).”
“Therefore, strong partnerships between the private and public sectors, both within Nigeria and with Development Partners outside Nigeria, will be crucial for the plan’s implementation to be successful.”
Speaking about Nigeria’s power industry, the President said that his administration had recognized it as a key driver of the country’s industrialization. He also mentioned that the 614-kilometer Ajaokuta-Kaduna-Kano gas pipeline project kicked off in July 2021 to improve energy security.
He recalled that N200 billion was paid for stranded power at the start of his administration in 2015 to service existing liabilities. According to him, the phrase “Take or Pay” in power purchase agreements has been replaced with “Take and Pay”, similar to how the Transmission Company of Nigeria (TCN) was forced to receive only 50% of proceeds previously, the Distribution Companies were forced to use banks for bill collection. TCN can now make investments in its own infrastructure because it is profitable.
While wishing the forum’s discussions success, Buhari reassured the attendees that Nigeria was prepared to take into account the discussions’ conclusions and recommendations in order to give the Nigeria project the status and importance it properly deserves.
