BY SUNNY CHUBA NWACHUKWU
Nigeria’s economy is presently facing a number of internal management hiccups and politically motivated challenges. These hiccups and challenges can easily be overcome if the issues are professionally tackled with the right macroeconomic principles, strongly backed with sincere and committed political will by those in authority.
Reforms can be carried out by the government through the implementation of a determined action plan by investors or stakeholders from the private sector. Such investors are strategically often prepared to offer value products and services to their numerous clients and customers so that they are not thrown out of business. They ensure that they are sustainably retained in the respective business relationships they establish, and stay relevant into the future.
In the case of global trade performance, if Africa’s entire share still stands at the miserable figure of three percent of the world’s (for over a decade now), why can’t the fifty-four African countries revolutionise their respective industrial sectors and improve their finished goods output (instead of just raw materials) and export same to the world market leveraging their naturally endowed respective comparative advantages?
The African continent is known to be generously endowed with very rich mineral resources and is divinely favoured with wonderful and super climatic seasons that support agriculture and agribusiness on its vast arable farmlands. The African Continental Free Trade Agreement (AfCFTA) is one multilateral trade initiative that should be expected (by backward integration trade strategy and import substitution policy) to favourably impact in no small measure on Africa’s global trade performance, tremendously.
Nigeria presently needs rapid industrial growth, which can also be tactically actualized at the grassroots or local level along a product value chain, among groupings of micro and small enterprises that support domestic manufacturing (with home grown and indigenous expert knowledge that has historical trade background). This would need a conservative engagement of all the stakeholders in the identified and specified economic value chains, to holistically look inwards, ensuring the consumption of all locally sourced raw materials and the finished goods; in every sector of the nation’s economy, at all locations in the 774 local governments. The governments at all levels, therefore, need to engage economic development partners (in various trades and economic sectors) and finance organisations (cooperatives, agriculture or micro finance houses and commercial banks) along with state and federal government agencies (for instance, Anambra State Investment Promotion and Protection Agency, or the Nigerian Investment Promotion Council) to set up investment promotion desks in all the 774 Local Governments Areas; and genuinely work out well articulated financial support packages (that is in sync with a specific business plan). This should be done through existing or consolidated banks in the affected locations, who should facilitate, enhance and monitor productivity, void of sharp and corrupt practices (based purely on merit and without undue favouritism).
The above suggested economic reform template expected to be strategically driven by grassroots investors in all LGAs would, in no small measure (if genuinely implemented without corrupt practices), improve GDP growth and reposition the economy to record impressive trade to GDP ratios. This ideology, shall also at the same time (if patriotically and sincerely implemented), solve the current critical economic problems of poor GDP growth, rising inflation, unemployment, wealth creation (by poverty eradication), local currency exchange rate depreciation, balance of payment, and ultimately save the failing economy from the brink of total collapse.
Productivity is the key and the roadmap to actualizing it. Some people might say that it is not rocket science, but it can only be achieved by a diligent practical economic and commercial approach in each chosen field of business (with its peculiar expertise and professionalism fully exhibited at all times, as well as commitment, discipline and financial prudence). This can shine through by way of daily, careful and genuine business engagements and conscientiously sustainable activities constantly taking place amongst stakeholders at the workplace.
With these basic microeconomic principles and tools, the government is urged to rise to the occasion with all sincerity and show the political will to make the economy work. All it demands is patriotism and selfless determination for the interest of the sovereign state, the nation; by such chosen individuals and players. All the previous economic packages and initiatives put together as economic plans, programmes and policies, and applied by past governments (with their respective short/medium and long term visions) were all good in their respective ways and for their seasons, but they all failed to actualize their set goals, due to corruption (a financial crime and social scourge prevalent among the players and those put in authority). The public servants that must deliver the goods for the benefit of the general populace, therefore, must be selfless in their stewardship, live above board with integrity and honesty in their careers and services to humankind.
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
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