Nigeria’s Vice President, Professor Yemi Osinbajo says boosting productivity through value addition is key in the implementation strategies of the country’s new medium-term plan, the National Development Plan 2021-2025 (NDP 2021-2025).
Prof. Osinbajo stated this on Friday in Lagos at the 2021 Presidential Policy Dialogue organized by the Lagos Chamber of Commerce and Industry, LCCI.
“The cornerstone of the strategy is boosting productivity by focusing on value addition as the guiding principle for all sectors, especially agriculture, manufacturing, solid minerals, digital services, tourism, hospitality and entertainment; value added is the key.
“In agriculture, for example, just as we try to increase production, say, of rice, we are paying equal attention to the value chain such as storage, transportation, processing, marketing; the introduction of commodity market—we have two private ones now and the public one.”
Vice President Osinbajo explained that similar measures were being taken in the mining sector, where government recognizes that exploitation and extraction would not create jobs.
“Our aim is to focus on resources beneficiation and of course development of the local industry so that we can create wealth all along the mineral value chain,” he stated.
Restating the strategic objectives of the NDP 2021-2025, which “Include establishing a strong foundation for a diversified economy, investing in critical infrastructure, enabling human capital development and improving governance and strengthening security,” Osinbajo said, “The implementation of the plan is expected to be supported by a range of measures of fiscal, monetary and trade measures including reformation of subsidy regimes and a better functioning foreign exchange market.”
Cardinal Principles
According to Prof. Osinbajo, there are a number of cardinal principles of the strategic direction of the NPD 2021-2025, among which is the centrality of job creation.
“All programmes and policies are viewed from the lens of the number of jobs, direct and indirect that they can create.
“This is important because it will also influence the sort of incentives that would be given sectors of the economy.
“Secondly, the loosening of restrictions on trade; we believe that generalized restrictions on trade are counter-productive, especially when they impede the ability of local industries to procure critical inputs.”
Prof. Osinbajo pointed out that the focus of government would be on allowing import of goods to which value can be added before domestic consumption or export.
“When implemented in full, the strategic orientation of becoming a value-adding economy will help create a high number of jobs.”
Other principles of the NDP 2021-2025 that the vice president listed were the promotion of business friendly environment, ending and accelerating the growth of the Nigerian digital economy.
He said the plan, “Envisages a movement away from a strategy of managing limited supplies to one of expanding the supply base of food and manufactures as well as with regard to electricity supply, petroleum products and foreign exchange. It also prioritizes the exports of goods and services beyond crude oil.”
Prof. Osinbajo said that the success of the NDP 2021-2025 would depend greatly on strong partnership between the public and private sectors.
“The new National Development Plan envisages an investment commitment of N348 trillion over the plan period of which it is expected that Government at all levels will come up with about N49.7 trillion or about 14% while the private sector is expected to invest N298 or about 86%.
“This government has always emphasized that the private sector has a key role to play in our efforts to build a more resilient and competitive economy.
“Private companies are engaged in design, construction, logistics and financial components of national infrastructural projects just as we are fully conscious that good infrastructure is vital to enable the private sector to be efficient and competitive, we also see their role in all the sectors of the economy.
“This is why we are now able to use the Abuja-Kaduna railway and Lagos-Ibadan railway and talk about near completion dates for the Second Niger Bridge, Lagos-Ibadan Expressway, Abuja-Kano Expressway, and the Abuja-Kaduna-Kano gas pipeline.
“The infrastructure story will be taken up a notch higher when Infraco, the N15 trillion naira infrastructure fund being set up in partnership with the private sector takes off fully.”
AfCTA Negotiations
Calling on the private sector to contribute to the articulation of the national trade strategy and provide support to Nigeria’s negotiators in the Africa Continental Free Trade Area, AfCTA, Vice President Osinbajo urged Nigerian businesses to take advantage of the opportunities offered by the free trade area.
“As things stand, negotiations on the Rules of Origin which are very important for boosting local production are at about 87.65% complete with outstanding work of about 10% on textiles and 2% relating to automobiles.
“In the services, 41 countries have made offers but which are still to be verified. The Phase 2 negotiations on investment, intellectual property, competition are at early stages while talks on Women and Youth in Trade and Digital Trade are yet to start.”
In her remarks, the President of the LCCI, Mrs. Toki Mabogunje acknowledged the efforts of the Nigerian government at fixing the economy.
She said the approval of the NDP 2021-2025 by the Federal Executive Council to succeed the Economic Recovery and Growth Plan, ERGP 2017-2020 was an indication of government’s clear and deliberate efforts at managing the economy.
“We urge the government to establish a monitored implementation mechanism that will guarantee the delivery of positive impact of the plan.”
Delight Over Subsidy Removal
Listing the LCCI priorities that would ensure enabling business environment in Nigeria, Mrs. Mabogunje expressed delight at the “Proposed removal of fuel subsidy after a long drawn delay,” and recommended “Corresponding investment in transport infrastructure to ease movement, create more transport choices and thereby reduce the cost of transportation and logistics.”
She also commended the passage and signing into law of the Petroleum Industry Bill and urged the federal government to ensure that the suspension of the inauguration of the board of the Nigerian National Petroleum Corporation does not hinder the implementation of the Act.
The LCCI president also spoke on the need for regular engagements between the government and the private sector; digital national assets register; the establishment of the Special Economic Zones, Climate Change, among others.
In the lead private sector remarks, the Group Chairman, Nigeria Exchange Group, Otunba Abimbola Ogunbajo stated that technology would be the driver of advancements in the years ahead.
He called on businesses in Nigeria to leverage technology and digitalization to grow their businesses.
There was also a dialogue session during which Vice President Osinbajo answered questions on various aspects of the Nigerian economy.
PIAK
