Revisit the 2014 National Conference Report

As the Federal Government sets to inaugurate its newly designed Economic Recovery Growth Plan with a view to accelerate the pulling out of the nation’s economy out of recession, it is desirable that the government which has commendably re-introduced history in school, revisit Nigeria’s store of knowledge with respect to the economy. As a delegate to the 2014 historic National Conference, I bear witness that some of the recommendations of that all-inclusive conference with relevance to Economy, Trade and Investment are still relevant today. They include the following:

ECONOMY, INVESTMENT TRADE AND

The plan- budget link which has been absent in the recent past should be rekindled by legislation. To this end, section 81 of the 1999 constitution as amended should be amended of provide for: One, The Appropriation Bill sent by the President to the National Assembly or by the State Governor to the State Assembly to be accompanied by an underlying Medium Term Plan and a Plan Compatibility Statement detailing deviations from the previous plan with justifications. The Plan Compatibility Statement will prevent plan and budget indiscipline; Two, National Revenue Bill to be enacted into law every year prior to the Appropriation Act. Any excess revenue beyond that in the National Revenue Act to be retained in the Federation Account and can only be distributed within the year only with the passage of a Supplementary Revenue Act; and Three, Any excess revenue beyond that in the National Revenue Act retained in the Federation Account and not distributed by the end of the year to be used exclusively to finance capital programmes of the next year’s budget.

Reduction in the number of political appointees and aides

Elected members of the legislative arms of all the tiers of government should serve on part-time basis. There should be speedy removal of all impediments to the revival of the Iron and steel and petrochemical industries and funding for R&D into possible Oleochemical uses for Nigeria’s major agricultural products; Provision of world class infrastructure for the supply of power, transportation, water etc. to support manufacturing, agricultural business and tourism development.

Sound and Stable Macroeconomic and Regulatory Environment

Conference resolved that to sustain and enhance the level of macroeconomic stability achieved therefore, FAAC operations should be fine-tuned to reduce the devastating effects of the liquidity cycles associated with the fiscal operations of FAAC on macroeconomic variables. This is because a stable macroeconomic and regulatory environment is critical for investments planning. Complementary monetary, fiscal, trade and industrial policies are necessary for better synergy. In an open economy that depends heavily on imports for industrial inputs and capital goods, exchange rate stability is crucial to manufacturers for planning purposes. It is, therefore, important for the Central Bank of Nigeria to continue to carefully manage the foreign exchange market.

Competitiveness, Standards and Regulations

Nigeria has a number of regulatory agencies to oversee pricing behaviour for specific utilities. These bodies should effectively regulate the pricing policies of service providers towards ensuring cost effective inputs; it is necessary to develop appropriate standards for products that are not currently covered, while reviewing some current standards with a view to bringing them up to global best practices. Furthermore, the various regulatory authorities should be made to perform optimally by ensuring that illegal and non-conforming activities going on are checked as they are inimical to economic growth and development.

Patronage products of Made-in-Nigeria

The policy of Buy-Made-in-Nigeria products is, therefore, commendable as this would translate to increased production activities and job creation for Nigerians. This policy should be embraced by all MDAs in all tiers of government; and the margin of preference policy should also be strictly enforced in the procurement processes of all MDAs at all levels of government.

Dispersal of Industries Industrial Infrastructure Tariff Policy Review and

The strategy of industrial clustering has been identified by many manufacturing sub-sectors in Nigeria as a good strategy for development; provision of dedicated industrial infrastructure is therefore an important way to foster industrial clustering, both in areas of traditional industrial agglomerations as well as in underdeveloped areas with latent economic potential; the on-going extension of gas pipeline to all parts of the country should be sustained and intensified; and sector-specific research and product development institutes should be established in all ecological zones to rigorously pursue research into value addition and product development using the local raw materials.

Multiple and Illegal Taxes and Levies

Conference appreciated the steps taken by the Federal and State Governments through the National Economic Council (NEC) in setting up a Technical Committee on the Review of Multiple Taxation across the Federation at various levels and its effects on the Nigerian economy, following the evidence-based presentation made by the Manufacturers Association of Nigeria to NEC in March, 2013. Government at all levels should earnestly adopt the implementation blueprint so as to put an end to the lingering problem of multiple taxes and levies in the country.

Conference resolved that there is the need to revive the Tariff Review Board which will review recommendations from the Tariff Technical Committee and make appropriate recommendations to government and modernising the Rail System. The commendable on-going rail rehabilitation programme should be accelerated in view of its centrality to the growth of internal trade and industrial competitiveness.