Governor of Lagos State, Akinwunmi Ambode has identified critical factors necessary for diversification and building a broad-based economy to lift Nigeria out of economic recession.
Ambode stated this in a paper, ‘Recession: Challenges & Recovery Prospects’, delivered at the maiden convocation ceremony of Wellspring University, Benin, recently. He said that it is important in responding to the current recession, that we do not see the challenge as a sprint but a marathon.
“The actions we take must not be just for the short term but must have an outlook for the long term with gains that are accruable over many years,” he said. The governor listed the factors to include, improving tax collection, economicdiversification, eliminating corruption, and easing the constraints to business. Others are increasing labour productivity, job creation and youth empowerment, and end the dependence on the federation account.
Highlighting some of the practical steps undertaken in Lagos that had resulted in modest gains, he said that his administration had always made excellence a priority and intends to keep it so.
“In this current democratic dispensation since 1999, there has been a renaissance of sorts in our city and State. Lagos has progressively forged a development path and created a model in fiscal discipline and the provision of social services for the rest of the country.
“We have managed to sustain the momentum of growth of the state economy despite the increasing population and the need to provide utilities. This is taking place even in the face of economic crises and the dwindling revenue from oil.
“Our vision is to make Lagos safer, cleaner and more prosperous for the people. This vision of making Lagos Africa’s Model Mega City and Global Economic and Financial Hub is reflected in everything we do and since we came into office in 2015, thisadministration has operated on a tripod which is security, job creation and infrastructure renewal.”
The governor was optimistic that the worst is over. According to him, “the full year GDP figures released by the NBS gives positive indications that the recession has bottomed out and we are on our way to recovery. This is just as the Nigerian National Petroleum Corporation (NNPC) announced that the country’s oil output has risen to 2.1 million barrels per day (mbpd), signalling the in-roads the federal government has made in restoring peace in the Niger Delta, where attacks by militants on oil installations last year slashed Nigeria’s production to 1.3mbpd.
“The approval and release of the Nigerian Economic Recovery and Growth (NERG) plan, sets the stage for the government’s economic reform programme and this is critical to our recovery path. In a similar vein, the ongoing implementation of the Social Investment Programme (SIP), significant infrastructure spending of the federal government, and possible early passage of the 2017 budget, are all expected to trigger a positive multiplier effect on the Nigerian economy.
“More so, the recent Eurobond issue of $1 billion which was oversubscribed by almost 8 times will reinforce the trend of increasing reserves. Indeed, foreign reserves rose from $23.9 billion in October 2016 to $27.8 billion in January 2017. Also, the revised forex policy of the CBN has eased off tension in the market and has seen the Naira appreciate significantly against the dollar to much delight. “It will appear therefore that the worst is over. Prospects of recovery are very good but our eyes must remain firmly on the ball. There is a tendency for us to recline back to doing business as usual the moment this current episode ends. This portends much ill for the economy and the future. I am however confident in the commitment of His Excellency President Muhammadu Buhari and his Economic team to the implementation of the NERG and in taking the right decisions towards correcting the mistakes of the past and ensuring that we do the right things going forward.”
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