Compelling Dedication to Work, Enhancing Businesses with Executive Orders
FDI is the smallest component of capital importation in the first quarter of 2017, as has generally been the case since 2013, according to NBS. FDI accounts for $211.38 million, or 23.27% of the total. This represents a quarterly decline of 38.66%, but a year on year increase of 21.17%.
NBS notes that there was a high-profile sale of bonds denoted in foreign currency during the quarter, explaining, however, that there is a “lag between subscription and actual payment.”
It says capital importation was particularly low in January, at $187.90 million, stressing that this is only the fourth month since 2007 in which capital importation was less than $200 million.
“The fall in FDI comes after four consecutive quarters of increase,” NBS states.
Cooperation
Given the unsavoury foreign capital attraction statistics and the economic turndown that accompany it, greater ease in the process of doing business is certainly what Nigerians would like to see. The economic environment needs to be freed from the spectre of wanton bottlenecks.
Expectedly, the private sector has largely bought into the government’s plans to reflate the economy.
Director-general of Abuja Chamber of Commerce and Industry, Chijioke Ekechukwu, says regarding the recent executive orders, “From the perspective of the ACCI, the orders will allow entrepreneurship to thrive and encourage the growth of the economy. It will reduce the pressure on foreign currency, especially in the importation of goods and services.
“Once we are able to handle the issue of petroleum products importation, the pressure on exchange rates will be reduced. These are things that will drive our economy and also make a growth pattern plan work.”
Ekechukwu believes the orders on ease of doing business would help to eliminate the problem of multiple taxation, which has been the bane of many businesses in the country, especially the micro, small and mediums sized enterprises.
Pharmaceutical Manufacturing Group of the Manufacturers Association of Nigeria has also lauded the executive orders, particularly as they relate to support for local content in public procurement. PMG-MAN chairman, Mr Okey Akpa, says the orders have the potential to make Nigeria achieve medicines security and boost national self-sufficiency in pharmaceuticals and related health commodities. Akpa calls for faithful implementation of the orders, which he believes can stimulate employment in the pharmaceuticals sector, improve the economy, and facilitate export of Nigerian medicines.
Ekeh says, “Granting preference to local manufacturers is a sure way of igniting the spirit of indigenous entrepreneurship. This is the standard the world over. Nigeria boasts a number of world-class companies whose products can compete favourably with those of their foreign counterparts. The problem has always been the right form of support from the government.”
The support that the private sector craves is likely to come with the execution of the recent policies. The changes in the specific sectors mentioned in the orders are expected to ripple out and bring improvement in other areas.
The executive orders announced by the presidency on May 18, to all intents and purposes, represent the most thorough and determined attempt yet by the federal government to remove obstacles to business, which are largely attitudinal and behavioural. The new policies are certainly an effective help in the efforts to actualise the economic vision of the President Muhammadu Buhari administration.
The next few months will be interesting as the world watches to see the implementation of the executive orders.