Beyond subsidy removal: Rebuild and pursue economic stability

Sunny Nwachukwu (Loyal Sigmite), PhD, a pure and applied chemist with an MBA in management, is an Onitsha based industrialist, a fellow of ICCON, and vice president, finance, Onitsha Chamber of Commerce. He can be reached on  +234 803 318 2105 (text only) or schubltd@yahoo.com

Nigeria’s economic managers need to do something differently now, in the pursuit of a redefined strategy that can change the narrative towards economic stability, with considerable efforts put in to record economic success through performances that will positively turn the tide. The only way to effect this paradigm shift is by moving forward with other macroeconomic activities in other sectors, outside of oil (in consonance with some other economic pillars, vis-a-vis agriculture, sustainable gas and energy transition, manufacturing, education, health, social welfare, creative economy/intellectual properties, ICT and provision of intangible professional services).

The magnitude of recovery and growth needed for the economy presently, should be the ultimate target, the main focus because, a lot needs to be done at a jet-speed to reverse the high inflation rate, improve local currency exchange rate, reduce hunger and poverty among the tens of millions of vulnerable Nigerians.

The great potentials that abound in all facets of the country’s human endowments and the rich natural resources are required to particularly transform the economy. The achievable goals should primarily focus on productivity in every daily economic and commercial activity. Such proposed or planned policy to achieve high national output capacity will definitely usher in impressive demands for employable labour force from the labour market, once the eligible applicants manifest the right aptitude that qualifies –  “capacity” and “content” in service delivery (trust that Nigerians are given to diligence and industry in whatever assignments they find themselves).

The Central Bank of Nigeria (CBN) recently rolled out a loan package of N23 billion to 28 firms in the private sector, in its “100 for 100” programme with Governor Godwin Emefiele pointing out (as I paraphrase) that the essence was to actualise an improved economy that is characterised by *job creation opportunities for jobless Nigerians; *high productivity in the manufacturing sector; *steady reliance on foreign exchange reduction; and, *impressive progress on import substitution. These attributes, as enumerated, will drive the GDP to the right trajectory.

The truth about it, and the bottom line, rests on the clarion call: “all hands on deck,” at every level and in all vocations of human endeavours (all hands here, must be patriotic hands), with the common purpose to build the nation’s economy through sacrificial service and selfless ambitions that ultimately favour the sovereign national economy.

At this juncture, the sectoral contributions to the economy from the entire value chain of the crude oil business have to be talked about; being the only significant contributor to the nation’s foreign exchange earnings, all through its history. Specific emphasis is on the downstream operations. The infrastructural development of the subsector is, of course, very important for you and I to fully talk about the economic impact of optimal utilisation of this resource along the complete value chain up to consumption. In other words, the importance of local refining of crude oil and its advantages in actualising a self-sufficient economy in the finished product’s daily local consumption, is the major focus of this discourse.

The line of thought narrows down to the economic advantages of engaging the artisanal refining entrepreneurs in a legitimate manner, for the purpose of achieving the objectives of curbing oil theft (that amount to billions of dollars annually, which ought to have been saved for the sovereign state), and at the same time, check the environmental menace of their illicit refining activities, that is injurious to human health. These two strategic reasons must be considered first in examining why the perpetrators should be engaged to conduct their activities in a legitimate manner, under the regulatory compliance of the constituted government agencies responsible for such – by way of approval and registration.

The recent action taken by the Rivers State government in fighting the excesses of these illegal operators is well appreciated, especially from the environmental health dimensions. At the same time, the federal government must not lose sight of the positive economic dimensions of these artisanal operators; in terms of job creation, import substitution, increased productivity and finally, its effect on reduction of FX stress on imported products, no matter how small.

The president’s special assistant on Niger Delta affairs, Senator Ita Enang, in a recent television interview, made valid points about why the federal government should continue to engage these illicit refiners (based on the March 2021 dialogue that took place). At the end of the day, the ultimate gain, if proper steps are finally taken (through short term professional training and workshops, bearing in mind that some of them had been trained by the government in South Africa); and issues adequately harmonised for all stakeholders, the trajectory for the economy will be a win win situation, leading to growth and stability.