VP Outlines Buhari’s Economic Programme
Explains why GDP growth does not impact on Nigerians Social sector investment top plan
In what appears to be the unveiling of the economic programme of the President Muhammadu Buhari administration almost 100 days after assuming office, Vice-President Yemi Osinbajo has said the way forward for the country is social sector investment – investing in the people, education, job creation, national school feeding scheme, conditional cash transfer and reflating economies of the states as indices that will boost the economy.
He spoke in Abuja yesterday at the ongoing 45th Annual Accounting Conference of the Institute of Chartered Accountants of Nigeria (ICAN) on the topic, "Repositioning Nigeria for Sustainable Development: From Rhetoric to Performance.”
He also explained why the growth in the nation’s Gross Domestic Product (GDP) does not seem to impact on Nigerians.
He pointed out that the current top-down economic model as well as lack of consideration for the structure and quality of growth partly explained why despite the country's rising GDP and foreign reserves, unemployment and poverty had remained a challenge.
He noted that growth figures "can be deceptive where the structure and quality of growth are not considered".
He said high growth numbers could become an irony with "a top-down economic model, when the major revenue earner is extractive and the value chain is poorly developed".
He pointed out that some of the ideas on the nation’s economic revival had already been put in place by the Buhari administration, including the bailout package for the workers while some other initiatives were currently being worked out.
While noting that education represented the basics for economic development, he said: "One of the most important interventions required in the education sector is capacity building to improve teacher quality. This programme is intended to drive teacher capacity development; boost basic education; attract talents to the teaching profession. Better educated population increase economic potential for productivity."
He said the ruling All Progressives Congress ( APC) “has made a commitment to provide one meal a day for all primary school pupils and that will create jobs in agriculture, including poultry, catering and delivery services".
According to him, the multiplier effect of the introduction of the scheme include, 1.14 million new jobs; increased food production – up to 530,000 mt/a; attracting investor by investment – up to N980 billion.
Osinbajo further identified conditional cash transfer as another avenue for alleviating poverty.
He said the programme is intended to support the 25 million poorest households to incentivise vaccination, education and production.
The multiplier effects of the introduction of the programme, he noted, would include: lifting millions out of poverty; putting millions into rural production; and boosting rural economy.
He stressed the need for ensuring ease of doing business, the need to improve the power sector; have one-stop shop for approvals; innovation and fighting piracy; diversifying the economy in agriculture – self-sufficiency in rice and wheat (staples) production, manufacturing, entertainment and technology.
On the power sector, he said: "Despite the challenges, there have been measurable improvements over the past three months (June to August 2015). A 26% increase in operational generation capacity (June to August 15, 2015 compared to January to May 2015); decrease in pipeline vandalism boosting gas supply; a 10% reduction in transmission losses (June to July 2015 compared to January to May 2015); reduction in red tape to remove delays blocking the 450MW Azura-Edo IPP and the 500MW Exxon Mobil Qua-Iboe IPP; the imposition of a September 2015 deadline for the submission of the Discos’ revised tariff trajectories."
Earlier, the President of ICAN, Chief Samuel Olufemi Deru, commended the vice-president for his commitment and for being able to attend the programme in person.