An economic transformation repositioning for productivity  

The four critical economic variables that need to be addressed always in developing an economy are the following – Exchange Rate; Inflation; GDP Growth; and Fiscal Policy. Incidents involving unprofessional practices in vital areas of governance structure have significantly contributed to the economic woes and failures in most African economies (of which Nigeria is not an exception). To discuss these key points further, an important aspect of the government’s responsibilities pertinent to highlight, especially on the issue of good governance (globally), is security. Without security it is nearly impossible for the centre to hold, even more so, economically! The reason is that no sane investor can operate in “troubled waters” because the primary objective of any business enterprise is to make profit. Businesses need stability (socio-political) in order to thrive in an economy, so security is a key factor for economic growth and development.

Governance principles behove on the government, as primary duty and responsibility, the full protection of lives and property, in addition to creating an enabling environment (inclusive of ease of doing business with full protective measures and support to the existing businesses in the private sector to operate on a level playing ground, where healthy competitiveness is allowed as a business practice), for the economy to thrive. The continent of Africa is stupendously endowed with abundant natural resources ( in mineral deposits – solid minerals, liquids and gases) but, unfortunately, has practically failed to grow and excel economically as expected. Nigeria, a case study in this context, viscously cycles round and round in her daily economic activities without recording any tangible success in savings surplus or economic growth and development (unlike what obtains in the West or the “developed world”). This observation is borne out of a critical survey conducted over the years in the field of business where all economic activities involve massive importations of all kinds of goods and services without matching reverse export operations simultaneously taking place at any given period (with respect to international trade).

The local currency, the naira, for instance, has plummeted to a terrific record low, at a time when economic pillars and enablers (such as commercial infrastructure) aren’t contributing much to the nation’s Economic Efficiency (due to official corruption, leading to financial fraud and massive looting around the national vault). This economic loophole appears to be, significantly, the lacuna of the manufacturing sector, which is without visible encouragement and support from the government in terms of favourable monetary and fiscal policies. This scenario has left the country characterised by poverty and an economy that is non-productive with solely consumer status, hence the tag “consumer nation” that the country has earned. This leaves the vulnerable masses (mostly mothers and children), who simply cannot cope any longer with such daunting situation as rising costs of goods and services (imported at excruciating foreign exchange rates to the local currency equivalent), especially with the soaring and exorbitant prices of essential commodities (energy, for example) at the marketplace.

The consumption versus production economic status therefore, is of essence in a discourse or debate on a topic such as “economic transformation”. It is hoped that the national economy will improve in the near future, if the economic transformation (involving total reform and paradigm shift) is activated by the government, and effectively led by private sector investors with the close involvement of the organised private sector associations, like the city Chambers of Commerce, or the Manufacturers Association of Nigeria (MAN). This should easily be achieved through value addition to all locally sourced industrial raw materials, finished as consumer goods for export!  Productivity in essence, is here likened to a key performance indicator (KPI) that should show visible signs of economic improvement and prosperity, reposition the face and status of any ailing economy desirous of improved performance, for realistic economic growth. To transform the economy in the real sense of the word, the local manufacturing of goods should be vigorously pursued by all stakeholders (including by consumers who should patronise locally made goods that are marketed to encourage sales of locally manufactured finished products). The real sector, regarded as the solid foundation of economies all over the world, through private sector investments, engages all stakeholders along the manufacturing value chain, for a sustainable increase in the productivity that indirectly catalyses a wealth-creation spark within the economy.

Such operation and commercial practice within the economy (if realistically implemented), no doubt, renders tremendous support to the backward integration economic policy of the ruling government. This is what is expected for a redirection of the economic roadmap to a savings surplus trade performance from all the actively engaged economic sectors, in the nation’s current account and external reserves (with foreign exchange earnings through exports). The local currency can then start getting stronger. The situation over time can begin to take shape reminiscent of the ‘60s and ‘70s (after Nigeria’s independence in 1960). This scenario of economic transformation is earnestly desired for Nigeria and its battered economy.

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