Post Election Climate in Nigeria
Let me once again thank you for inviting me to join you on this luncheon at which you allow me to make few remarks on post 2015 elections business climate in Nigeria. You will recall that early in March this year, I had the opportunity of addressing you on Business Prospects in Nigeria during the elections. I assured you that our business partners have nothing to fear about the business climate in Nigeria. I based my confidence on three factors:
- The existence of an election commission that is free in all its manifestations;
- The determination of Nigerians to remain as one entity in spite of motive political differences that might exist; and
- The strong desire of Nigerians to ensure democratic governance and retain the dividends of democracy which we have been enjoying since 1999, bearing in mind the strong nexus between democracy and development. Judging by what happened during elections, I can safely say to this audience, I told you so.
We have not only strengthened democracy in Africa, we have also solidified and improved the business climate in Africa’s largest economy and the most strategically important country on the continent. Let me assure our business partners that the conducive investment climate, which the out-going government established, will be maintained and even strengthened. True we are going to experience a change in the political party that will be administering the country; however, the economic objectives of all Nigerian political parties remain the same.
In view of the economic realities confronting the country, it is the wish of all Nigerians that the economy of the country becomes diversified. We want to move from an economy that is dependent solely on oil to one that is more balanced and which emphasizes non-oil products such as Agriculture, Power, Solid Minerals and Infrastructure. This is one issue on which our major political parties are agreed. Steps taken by the out-going government to create an investment friendly political and economic climate will be maintained and strengthened by the in-coming government.
The truth is that all Nigerians are agreed that we should focus on job constant and too focused for it not to have yielded some serious reflections about where we are and what we urgently need to do to undermine our administrative predicament.
The FGN has for instance, taken some steps to confront the productivity challenge that could be deepened, consolidated and scaled-up. In 2012, the FGN approved a new national policy on productivity. The philosophy behind the NPP is to have ‘a systematic and comprehensive programme of implementation on improving productivity of labour, machine, material, capital, environment, technology, attitude, energy and any other definable inputs of production of goods and services for various sectors of the economy.’
In the wings of that policy the FGN instituted the Oronsaye Committee on the restructuring and rationalisation of Federal Government agencies, parastatals and commissions. The rationale for the creation, concentrate on increased food production, mechanize agriculture, and provide additional incentives to energize productivity and make the private sector to be the engine of the development. I can assure you members of US Chambers of Commerce that the attractive business climate which existed in Nigeria in the past five years and which led to over 200% increase in volume of trade between Nigeria and US will be maintained and consolidated.
There might be some slight changes in operational modalities as well as in content and style of delivery. But the objectives and principles will remain the same. We have almost succeeded in exterminating Boko Haram. The new government headed by a Retired General will not only conclude the Committee is very instructive; it is ‘to meet the global socio- economic challenges which have rendered it inevitable for the Government to cut the cost of governance while ensuring accountability.’ Its ultimate objective is on how to empower the MDAs to do more for less, thereby jumpstarting a productivity trajectory which can transform the Nigerian socioeconomic profile. We can therefore say that with the implementation of the Oronsaye Report already commencing, the drive towards cost containment has begun.
With respect to the much talk about bloated and skewed budgetary structure that lean more to the recurrent, there is a compelling need to set target benchmark for capital-recurrent budget that governments is seen to assiduously pursue based on timelines. This would imply also that, in terms of industrial relations, wage concessions would no more be due to blackmail or unbridled union militancy but be seen to be managed conscientiously process but will ensure that no single Boko Haram Rebel will fight another day.
For the United States Chamber of Commerce and other corporate bodies that have been supporting Nigeria in the pursuit of our economic objectives such as Corporate Council of Africa, The US Exim Bank and Overseas Private Investment Corporation (OPIC), the conditions that make them to be our good partners will be retained and strengthened. I am aware that your group, U.S Chambers of Commerce, have been planning a trade mission to Nigeria. The Embassy stands ready to assist when your plans are finalized.
On the diplomatic and political side, the relations between Nigeria and US will continue to wax stronger. The US Government has been fully apprecia- on principles and in the nation’s best interest, to depend highly on negotiated productivity agreements.
The interventions required to move from policy to action will focus on key areas such as a) getting the critical sectors of the economy to articulate their productivity plans based on agreed national benchmark; b) strategic integration of the various productivity plans and targets into the national plan by the National Planning Commission; c) launch of productivity metrics and tools to be deployed to enable employers and employees to begin to sign on to productivity bargaining and gain sharing contracts, to institutionalise a new performancedriven compensation system and skills-based workforce pricing; d) value system reorientation; e) national waste reduction strategy that is linked to a new national maintenance management policy and a new asset efficiency scheme around redefined guiding principles; f) a new national tive and supportive of the Nigerian election process. We have received encouraging reaction on the smooth transition process that is ongoing. We expect discussions that will further strengthen the relationship between the US and Nigeria to continue during the Inauguration Ceremony.
The Embassy is currently working with the State Department and the White House to arrange for an effective US representation at the Inauguration Ceremony that will take place by the last week of this month.
Nigerian remains open for businesses, you are all welcome.
– (Being full text of the address by Prof. Ade Adefuye, Nigerian Ambassador to the United States at the luncheon meeting of US Chambers of Commerce last week in Washington, DC) qualification framework aligned to education, training, certification and skills pricing policies; g) input structure including capital- overhead-personnel benchmarks and local content policy; h) SME expansion programme and new regional industrial benefits policy; i) research, development and innovation; etc.
The goal of national productivity in Nigeria is possible. It just requires a huge dose of political willingness, administrative creativity and collective courage. We have begun the journey; it only requires some few more steps to get it done. This is the most critical challenge of the new administration.
–– ( Being Remark made by Dr. Tunji Olaopa, Permanent Secretary, Federal Ministry of Communication Technology as Chairman of the NISER Research Seminar Series on ‘ Productivity in the Nigerian Economy: Issues & Challenges’ held in Ibadan on the 12th of May, 2015)