Focus labs raise hope for success of ERGP

The Buhari administration may not be bereft of solutions to the myriad of woes that have plagued the country, chief among which is economic stagnation, after all, as may have been imagined in some quarters. The Economic Recovery and Growth Plan (ERGP) may just be proof of the administration’s ability to think differently, and may turn out to be the magic wand that needs to be waved to pull the country out of the economic doldrums.

When President Muhammadu Buhari launched ERGP in April last year, he referred to its objective as an intention to serve as a catalyst for economic recovery through activation and rapid development of the nonoil sector, with a view to delivering a diversified economy that would achieve sustainable growth and development.

The plan, according to the president, has as its vision restoration of economic growth, investment in people and building of a globally competitive economy, with the ultimate aim of promoting national prosperity and happiness of all citizens based on the principle of equity, justice and fair play.

Put it succinctly, ERGP focuses on three broad areas, namely, agriculture and transportation, manufacturing and solid minerals development, as well as power and infrastructure.

But despite what appears to be the lofty objectives of the growth plan, many are there who would readily dismiss it simply as an old wine in a new bottle. Nigeria has never been short of plans with lofty objectives and ambitious targets. Indeed, government archives in the seat of power are filled with beautiful plans that did not leave the papers on which they were designed.

But this particular plan appears to be different from those preceding it, if the focus lab sessions that were held in Abuja, from March 12 to April 22, 2018, are anything to go by.

The six-week event was said to have provided opportunity for investors, financiers, policy makers, experts and other major stakeholders to explore ways of finding practical solutions to identified problems that are capable of hindering realization of the objectives of ERGP. Some of the problems were peculiar to each investor in the different industries. But there were also some that cut across all sectors and affect everybody.

For instance, there is the common problem of lack power, which has made investors to rely on alternative sources of power, with attendant high cost of production. It is worse for manufacturers in the rural or semi urban centres, where power is virtually nonexistent. Other infrastructural challenges include lack of good motorable roads, especially in the rural areas, for evacuation of finished products, as in the case of agricultural produce, as well as lack of potable water.

Other problems are high cost of imported inputs into manufactured or processed products, against low import tariffs on imported counterparts, which combine to make the cost of finished products not competitive with imported ones. There is also the general problem of lack of access to capital, which is characterized by high interests on capital, multiple taxation and regulatory issues that sometimes discourage investors.

A major achievement of the Abuja focus labs, according to reports, was that they brought to the fore the fact that solutions already exist for some of the problems investors face, but lack of awareness has kept them unknown to would-be beneficiaries. For instance, officials from the Central Bank of Nigeria (CBN) provided information on the various financial products offered by the apex bank, which could help in tackling the problem of lack of access to capital, but of which investors are not aware. Officials from the tax authorities intimated investors with the various incentives that are available to them.

Investors learnt, for the first time, that certain services like fixing of rural roads are available in the ministries. Some investors were even said to have had their problems solved within the duration of the lab.

Interaction among key stakeholders at the lab made it possible for investors to come up with suggestions that would help the government put in place policies that would assist in the realization of ERGP objectives. There were suggestions on adjustment of loan requirements to allow for easier access to capital. There were also suggestions on the need to reduce tariff on imported components of locally manufactured products, and increase in import duty on imported products, to make prices of locally manufactured ones more competitive.

The event also enabled participants to discuss high profile projects that have the potential to unlock opportunities for investments with high dollar value in order to reduce pressure on the naira and earn foreign exchange, create jobs, stimulate economic growth and contribute to GDP growth. It examined six key sectors of the economy, namely, manufacturing, processing, power, gas, agriculture and transport.

Despite the problems enumerated, however, what emerged from the focus labs were clear proofs that ERGP may be heading in the right direction. A major take-away from the event was reported to be the revelation, by the Vice President, Professor Yemi Osinbajo, that at a macro level, the federal government has so far secured $22.5 billion worth of investments in 164 projects.

With the 2019 general elections around the corner, it does appear that ERGP, like governance itself at both the federal and state levels, has taken the back seat. The Abuja labs were probably the first in the series of several of such labs expected to be held to bring more investors on board ERGP, especially with the imperative of making the event go down to the state and local government areas, to get more potential beneficiaries involved. But the Buhari government is not likely to be worrying about ERGP in the months to come, when its preoccupation is understandably how to remain in Aso Rock beyond May 29, 2019, as the crescendo of politicking rises by the day.

As it stands now, the life of ERGP may be tied to the life of the administration that has midwifed it. In a country that does not have the culture of continuity of programmes and projects by succeeding governments, no matter their potential to benefit the generality of the people, it would be tragic if ERGP should end with the administration, in the event that Buhari fails to secure a second term. It is therefore necessary that the government pursues implementation of the programme, knowing full well the difference it can make in the nation’s economic revival and growth. Aduba wrote this piece from Lagos