The government must now prioritise productivity and encourage value addition.
Opening the 28th Nigeria Economic Summit Group [NESG] in Abuja with the Summit theme “2023 & Beyond: Priorities for Shared Prosperity”, President Muhammadu Buhari remarked that the country’s revenue issues are escalating the country’s debt situation, prompting the need to boost earnings and ease of doing business. He further stated that while the country’s debt service to revenue ratio is undeniably high, boosting revenues should now occupy the majority of the government’s attention. However, on the other hand, he emphasized that the country is already seeing real benefits from non-oil revenues while stressing that the government should now concentrate more on productivity and value creation.
Further, he affirmed that the Summit theme encourages stakeholders to consider what the nation’s priorities should be to achieve inclusive prosperity beginning in 2023 and beyond. He added that this is a crucial question in light of the terrifying headwinds of the last three years and the arising local and global trends that will undoubtedly determine the future. Pres. Buhari, who was represented by Vice President Prof. Yemi Osibanjo, said that productivity and adding value means making measurable value, jobs, and opportunities, as well as more tax revenue. To enhance productivity, he said Nigeria must open up its business environment, fix its ports, implement a single national window, restructure its customs procedures and tariff codes to eliminate delays and arbitrariness and remove unnecessary import restrictions to enable value-added operations.
Nigeria must improve and facilitate local and international trade.
According to the President, the country’s system for determining exchange rates continues to be a source of concern; therefore, the conversation they need, is about how to best manage the situation by locating a mechanism for raising supply and restraining demand transparent and will increase confidence. He added that the government had made some efforts in the past, like the Retail Dutch Auction System, Interbank Foreign Exchange Market, and the Wholesale Dutch Auction System; however, these efforts weren’t perfect, but the rules were evident, and the disparity between the official market and the parallel market wasn’t as big as it could have been.
Furthermore, He said the point is that there should be some component of price determination in the policy environment to promote confidence and increase foreign exchange inflows. They will also need immediate action to reduce inflation, which is both a burden on the poor and a hindrance to long-term progress. According to him, inflation in Nigeria is partially fundamental due to infrastructural inadequacies, but there is also an element caused by imported inflation, high money supply, and currency depreciation. However, alongside the monetary measures being implemented by the Central Bank of Nigeria, the country would need to expand domestic food production and ensure that it reaches the market.
Democratic and rule-based governance systems will improve Nigeria – Dozie.
Mr. Pascal Dozie, a Keynote Speaker at the summit, outlined several more effective approaches to establish an agenda for future leaders in the year 2023 and beyond and, in the end, achieve the Nigeria that we have dreamed of. Mr. Dozie, who also is a founding partner of the NESG, stated that the country would do well to acknowledge that democratically constituted and rule-based government systems are more durable than dictatorships and that the nation’s founding fathers decided for an independent Nigeria to become a secular state and a true federation for good reasons.
Also, Dr. Zainab Ahmed, Minister of Finance, Budget, and National Planning, stated in her own address that the federal government is developing a strategy to ensure that country’s GDP per capita increases to $33,000 by 2050. The Minister stated that the Nigeria Agenda 2050 plan would position Nigeria in the category of Upper Middle-Income Nations. She stated that the strategy would be carried out by succeeding governments utilizing this five-year medium term national plans for development and annual budgets. It is a moral obligation for the Nigeria Agenda 2050 to drastically reduce poverty and unemployment, as it is the only method for achieving sustainable broad-based growth.
Revival in Nigeria requires extra effort and new ways of thinking.
Moreover, the Chairman of the Board of the NESG, Mr. Asue Ighodalo, also pointed out in his opening address that Nigeria is going through very difficult times and that the country’s citizens must work hard to overcome these challenges. According to him, the country needs to work harder than we ever have before, take a different view, and then need to agree on innovative and practical ideas that, if adopted, will initiate the national resurrection and pull everybody out of the current predicament.
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Presently we must have increase in productivity and it note worthy that we are not just depending on oil for our derivation now, because our debts keep soaring high and our economy need to stands for it’s sustainability.
All this summit and meeting will not yield to any development unless the right thing is done which is Nigeria government should encourage production of goods in Nigeria.
We are servicing our debts with revenues that is not enough for our development. This is why we are still lacking. We need to offset and shelve this debts as soon as possible in all means, be we can see significant impacts of revenues we generate.
We are feeling the hit on our economy. Our the product in Nigeria is on the high side due to the debt. Our leaders don’t really take prepare action for real solution. But they can only talk and also make empty talks with no action
Despite the fact that the country’s debt service to revenue ratio is unquestionably high, the majority of the focus that the government should be putting on right now should be on increasing revenues.
As a result of the problems with the country’s revenue, the country’s debt position is getting worse, which means that the country needs to increase its earnings and make it easier for businesses to operate.
In order to facilitate value-added operations improve its ports, introduce a single national window, and reorganize its customs procedures and tariff codes to get rid of unnecessary import restrictions and delays.
As the country’s debt continues to rise due to revenue shortfalls, it is imperative that the government take action to boost tax collections and reduce corporate costs.
Although the ratio of debt payment costs to government revenues is undeniably high, the government’s immediate priority should be on expanding the tax base.
To reduce the amount of time lost due to delays, Nigeria has to liberalize its business climate, make repairs to its ports, create a single national window, and reorganize its customs procedures and tariff regulations.
While it is important to emphasize that the government should now focus more on productivity and value creation, the country is already experiencing real benefits from revenues that are not derived from oil.
To facilitate value-added activities, the government should institute a single national window, revamp its customs procedures and tariff rules, and do away with delays and arbitrary practices.
There is truth in the assertion that rule-based systems of government are more long-lasting than dictatorships, and that the forefathers of independent Nigeria made the right choice in deciding to form a secular state and a true federation.
It is imperative that the government take action to boost tax collections and reduce corporate costs. Something should be done ASAP.
A streamlined national customs office, updated tariff policies, and the elimination of unnecessary red tape would all help increase the efficiency of value-added activities.
The President claims that the nation’s exchange rate system remains a source of worry; as a result, the dialogue that is needed is about how to best manage the issue by identifying a method for increasing supply and reducing demand.
Our country debt is getting worse our revenue is not covering our debt we need to find way to increase our revenue by increase our productivity and encourage value addition the right things should be done to make things balance
To foster confidence and boost foreign exchange inflows, the policy environment should include some element of price determination.
It is like something is opening the understanding of our president or he is just toyline with words. That are and should be focusing on productivity and value and not certain unending dependant on crude oil.
Apart from working on productivity and value, government should please check the policies implemented that has negative effect on productivity and value of the products.
Our debts are being paid off with income that won’t allow us to grow. The lack of this is why we still haven’t achieved success. With the money we bring in, we can make a dent in our debts, which means we need to pay them off as soon as possible.