Following the swearing-in of Bola Ahmed Tinubu as the 16th president of the federal republic of Nigeria yesterday, economic stakeholders have called on the new administration to revamp the economy through fiscal and monetary policies.
The experts, who spoke in separate interviews with LEADERSHIP yesterday, harped on the need to address forex volatility to ensure the nation’s currency gain strength, fix the nation’s refineries, enhance broadband penetration, address multiple taxation and make the business operating environment friendly and conducive for business.
Though broadband penetration in Nigeria increased from six per cent in August 2015 to 48.21 per cent in March 2023, telecommunications companies in Nigeria, have called on the Tinubu-led administration to continue the momentum, by ensuring that Nigeria achieves 70 per cent penetration by 2025.
The executive secretary/chief operating officer at the Association of Telecommunications Companies of Nigeria, (ATCON), Ajibola Olude, while speaking with LEADERSHIP, averred that, this will help boost critical sectors like education, health, entertainment, Agriculture and Small, Medium Enterprises in the country.
Olude also appealed to the new government to revisit infrastructure companies (InfraCos).
Recall that seven infrastructure companies (InfraCos) were licensed by the Nigerian Communications Commission (NCC) between 2014 to 2018, to deploy metropolitan fibre and associated equipment.
“According to the regulator’s ‘Open Access Next Generation Fibre Optics Broadband Network’ paper, which was released in 2013, InfraCos will be in charge of giving service providers access to a national broadband network that will aid in closing the digital divide, promote the creation of local content, and provide quick and dependable broadband services to homes and businesses,” Olude stated.
However, he said, it is sad to know that none of them have operationalised the licences since they were issued, while calling on the new administration to revisit it.
He tasked the new government to try as much as possible to remove all the bottlenecks around the Telecom Sector in Nigeria, which includes vandalisation of Telecom infrastructure, access to forex and multiple taxation, among others.
Speaking on the appointment of a new minister of Communications, Olude said: “we want the presidency to consult players in the sector, before appointing a new minister of communication. We would not want a situation whereby someone who is not part of the industry, who does not know anything about the sector, could emerge as minister. That would lead to retrogression of the sector.”
On his part, the chairman, the Association of Licensed Telecommunications Operators of Nigeria (ALTON), engineer Gbenga Adebayo has called on the new government to tackle the issue of multiple taxation in the sector and to reject the proposed National Information Technology Development Agency (NITDA) Bill.
Adebayo claimed that the NITDA 2022 Bill would interfere with the operations of the Nigerian Communications Commission (NCC), and that having two government agencies operating in the same area would lead to confusion, double taxation, and unnecessary regulation, discourage capital investment, and have a negative effect on the federal government’s initiative to make doing business easier.
Meanwhile, the Manufacturers Association of Nigeria (MAN), Federal Institute of Industrial Research Oshodi(FIIRO) and key stakeholders in the Organised Private Sector (OPS) have listed priority areas the new president, Bola Ahmed Tinubu, must focus on to achieve an all inclusive economic growth.
The MAN president, Otunba Meshioye Francis, advised the incoming president to, as a matter of urgency, reverse with immediate effect, the 2023 fiscal policy measure that raises taxes on beverages and tobacco while also addressing the issue of multiple taxes in the country.
Represented by the head, Communications, MAN, Ambrose Oruche stated the need to give the productive sector maximum priority for the general good of all in terms of wealth and job creation for the nation.
He also called on the need to promote the use of local content by mandating the patronage of Made-in-Nigeria products by all government parastatals, agencies, and ministries; revisit executive orders 003 and 004; create a special window for forex allocation to the manufacturing sector; identify and break the powerbroker militating against the completion of the Ajaokuta steel complex to make available raw materials for steel and automobile industries and provide incentives to encourage a rapid energy transition in the manufacturing industry
Speaking further, he urged the incoming administration to give tariff preferential treatment to the motor vehicle and assembly sector pending the development of the iron and steel sector; revisit and reactivate dormant export incentives and engage and dialogue with the key stakeholders in the manufacturing sector on overcoming the challenges troubling the sector.
He added that the magnitude of the responsibility awaiting the new administration is enormous, demanding high senses of determination, and resourcefulness, as almost all parts of the sectors are presently in shambles, squarely squabbling in crisis
According to him, the impact is graver among industries, especially manufacturing, which has been battling poor performance and is now on the verge of collapsing as a result of these challenges, especially taxes.
Also speaking, the National president, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Ide John Udeagbala, said, the Nigerian economy is primarily powered by the Small and Medium Enterprises, (SMEs) as over 85 per cent of the country’s industrial sector is reliant on the Small and Medium Enterprises(SMEs) which embodies the informal sector also.
On her part, the immediate past president, Lagos Chamber of Commerce and Industry (LCCI), Mrs. Toki Mabogunje, explained that, the rising debt profile of the country is worrisome, pointing out that, the country is still being faced with forex liquidity concerns, contracting disposable incomes, rising inflation, escalating unemployment, business disruptions and investment uncertainties.
She emphasised the need for policymakers to expeditiously develop a framework that will ensure the country has a well-diversified revenue base, stressing that this imperative for macroeconomic stability.
He maintained that Science, technology and innovation (STI) is a very crucial cross-cutting sector in all developmental efforts of any nation if it is to be sustainable.
Similarly, an aviation security expert, Capt. John Ojikutu, asked President Bola Tinubu to discard the idea of the national carrier and concession all the nation’s airports.
Ojikutu, in a chat with LEADERSHIP said, each of the international airports must be concessioned with four of the domestic airports to remove the burden of the management and maintenance from the government.
He said: “the new government should discard the idea of a National Carrier but Flag Carriers at least two: one Regional and Continental and the other Intercontinental from the existing Carriers. National Carrier as being envisaged will end up as government Carrier and die as the Nigeria Airways.
“The incoming government should concession all the airports with none remaining as commercial for government management. Each of the international airports must be concessioned with four of the domestic airports to remove the burden of the management and maintenance from the government except the provision of recoverable intervention funds for capital projects.
“Also, no part of the planned Aerotropolis must be within any of the airports, it will increase the insecurity of the airports. Aerotropolis must be outside the main airport areas but at the boundaries between the airport services areas and the urban development areas. The aeronautical services for Cargo and General Aviation Terminals should be at the opposite end of the passenger Terminals.
“Having these on the same sides with the passenger terminals is to heightened the insecurity on the National Aviation Security. Separate the passengers’ security from Cargo and General Aviation Services Security.”
“MRO and Aircraft Leasing is private and not in Government Business other than regulations. Government should not be in business that it regulates. Anyone who proposes anything different from what I am saying here wants the failure of the new administration,” Ojikutu said.
Moreover, the National president of Association of Small Business Owners of Nigeria, (ASBON) Dr. Femi Egbesola charged the newly installed government to improve business scenarios for organised private sector, SMEs operators, domestic market and Manufacturers to strengthen the activities of the Naira with exports.
He said, the new government should rejig, revamp and liberalize the economy for investors adding that this would attract portfolio managers into the country to invest and rebound the economy of businesses within the value chain.
He stated that now that the elections are over, the new government must restore investors’ confidence level to attract foreign direct investment while encouraging the new system to pay critical attention to the power generation system to model the economy and incite more investors into the country.
He suggested that the newly installed administration must pay critical attention to low hanging fruits around business scenarios in the country by improving the surrounding challenges of domestic markets in accessing forex for manufacturers in the country while urging the government to engender exports to strengthen the activities of the Naira through aggressive exports.
He charged Bola Ahmed Tinubu to explore avenues to address multiple taxes, bonker inflation, stagflation, unemployment and binding constraints and weak regulations that impinges on the nation’s economy and operating environment.
He posited that multiple taxation on excise duties and other unfavourable economic policies that are making the ecosystem unfriendly for business growth in the SMEs sector should be removed to engender business growth in the country.
He also charged the government to provide incentives to encourage rapid energy transition in the manufacturing industry to reduce the uptick of carbon emissions in private, public and manufacturing sector while informing that if this is addressed Nigeria Economy will adopt circular economy and green energy growth.
Elaborating further, ASBON boss asserted the need for speedy business Facilitation bills by ensuring that policy experts promote a high level of actionable policy that will facilitate the ease of doing business with consistent and coherent fiscal trade and monetary policies that will promote policy pronouncement.
The president, National Council of Managing Director of Licenced Customs Agents (NCMDLCA), Lucky Amiwero, said the new president should overhaul the maritime sector.
According to him, the sector is in comatose and needs to be overhauled, especially the head of government agencies such as the Nigeria Customs Service (NCS) and the Nigeria Shippers’ Council (NSC).
“He needs to overhaul the sector, the sector is dead. Customs, Shippers’ Council need holistic reform because without that, no going forward in the system. We have one of the worst maritime sectors in the world.
“He needs to do a whole and complete reform. Everything must be overhauled because if he continues with the past system, things will get worse,” Amiwero stated.
In the same vein, theTrustee of Zacchaeus Onumba Dibiaezue Memorial Libraries (ZODML), Ayo Obe, called on government at all levels to try as much as possible to leave the door open to people who want to assist and contribute to the building of the education sector in a way that is transparent and fits into some of the things the government plans to do.
Obe stated that, a lot of time, NGOs and other well-meaning people face obstacles in trying to contribute to the sector.
Obe said: “we have a catch them young programme, and you know pupils will need books. Secondary school students need books. But one needs to get permission from the authorities before doing anything. So we want to encourage them not to make it an obstacle course for people who want to contribute to education. They should try and make it a win-win situation.”
The chair of the board of trustees, Ifeoma Esiri, thinks it will be futile to give government advice on where to spend more money, such as on books, ICT, or training teachers because that is something they know.
Moreso, an economist, Tope Fasua said, if the new government is able to implement half or even 30 per cent of its manifesto, it would be enough to turn the country around.
“He has committed to 10 per cent growth in GDP and I believe that he should strive towards that he has plans towards agriculture to encourage commodity exchange and to bring back commodity boards.
“For transportation, we expect integrated transportation network waterways and metro systems in most of the state capitals. I expect a social democracy that cares for the people while encouraging businesses without pushing the poor people to market forces,” he stressed.
On his part, executive director of the Civil Society Legislative Advocacy Center (CISLAC), Auwwal Ibrahim Musa “Rafsanjani”, said: “we expect that the president will focus on reviving the economy by first and foremost setting out an economic management team that will be saddled with the responsibility of looking at the various aspects of our economic policies and framework.
Rafsanjani said he expects reforms in the area of taxation, trade and investment, the ease of doing businesses and blocking leakages in the economy such as ensuring that oil theft is dealt with. He also called for the revitalisation of industrialisation in Nigeria which includes reviving the Ajaokuta steel rolling company.
Identifying key areas that the new administration should look at, the president and chairman of Council, Chartered Institute of Stockbrokers (CIS), Oluwole Adeosun noted that, both the capital and money markets should receive balanced attention from the federal government and promote unified exchange rate of the naira to encourage participation of foreign investors in the market.
“We expect a stable and unified exchange rate which will increase the level of foreign investors’ participation in our market. We also expect policy and positive pronouncements that will boost the confidence of stakeholders.
“Firstly, the new government needs to properly situate the capital market in the scheme of things in the Nigerian economy. The capital and money markets must receive balanced attention for the economy to grow maximally, even optimally as the capital market provides the barometer that measures the state of the economy. Secondly, there is a need to address the issue of trading liquidity. Get the banks and CBN to give more support to Capital Market Operators (CMOs).”
Director-general of Lagos Chamber of Commerce and Industry (LCCI), Dr Chinyere Almona hoped the new administration will focus on issues of immediate and critical importance to the business environment and the overall economy.
According to her, the present tenuous and fragile business environment has been a result of inappropriate and poorly implemented policies and interventions. There are fiscal policy gaps, unsuitable monetary policies, and administrative inefficiencies which are inimical to the proper functioning of the economy. These should be reviewed and urgently reversed for immediate gains.
Almona stated that, “areas of grave concern include arbitrage-urging non-unified exchange rates, incidences of market shocks, massive infrastructural deficits, and unsustainable debt burden.
“Another issue is the recently approved fiscal policy measures which are at variance with the pre-existing but fully agreed-on FPM roadmap 2022 – 2024. The recent measures run parallel to real sector growth and should be suspended forthwith with a view to being reviewed after due consultations with stakeholders.”
She said the government should sustain interventions in select sectors like agriculture, manufacturing, and export to boost the nation’s foreign exchange earnings capacity.
She also urged the government to keep track of the plans to tackle the menace of oil theft and to boost oil exports.
“The LCCI encourages the new government to tackle the issue of subsidy removal with alacrity and with its economic consciousness. The decision, however, must be combined with humaneness for the sake of the most vulnerable. Security is an issue that must also be dealt with in order to ensure a conducive investment climate.
“Generally, the government should support sectors with diminishing contributions to GDP as well as those whose value chains are domesticated. Some of the policies implemented by the outgoing regime might have been well-intentioned, however, implementation was a challenge,” she said.
Also, the managing director of Coleman Wires and Cables, Mr. George Onafowokan said, the Nigerians are optimistic to welcome the administration of President Asiwaju Bola Tinubu and his vice, Kashim Shettima.
Onaforwokan asked them to focus on the challenges confronting the economy and most especially the manufacturing sector.
“The administration has many challenges to put the economy in the right perspective, especially in the manufacturing sector taking advantage of the sector to create jobs.
“The new administration must look at FX and availability of foreign exchange to the manufacturers. If this is done, it would create stability for the market. High interest rate should also be looked into. This makes it impossible for some manufacturers to do business.
“The interest rate is not sustainable for the manufacturers. The government should also make available intervention funds to the manufacturers through the Bank of Industry BOI. The government should also ensure that the process of doing business gets better,” he said.
Meanwhile, stakeholders in organised labour and leadership of Nigeria Employers Consultative Association {NECA} have called on the new president to use his first 100 days in office to fix national refineries.
This is just as they charged him to work towards creating a conducive business atmosphere in order to restore the lost glory of the manufacturing sector.
The director general of NECA, Adewale-Smatt Oyerinde, while commending the incoming of President Tinubu, however noted the period of suspension of the planned subsidy removal by the outgone regime should be used by President Tinubu’s regime for a complete turnaround maintenance of all the national refineries.
Oyerinde, in addition, said though OPS is not against the removal but that while the removal is highly desirable and the way to go in order to save the country from the continuous funding of inefficiency and consumption, the social economic impact on Nigerians cannot also be overlooked.
On his part, Chief Emeka Agba, founder of Chief Emeka Agba Foundation (CEAF) called on Tinubu to work with men and women with integrity, noting that sidelining the fight against corruption and use of incompetence could dent his planned industrial growth.
Moreover, Agba called on him to tackle poverty, hunger, insecurity and joblessness in order to achieve security.
