Always and everywhere, whenever man fails to subdue the earth, the earth will subdue man. This is something that I may need to repeat for a while. The recession in Nigeria is clear proof that the nation failed to have adequate and appropriate utilization of its natural and acquired resources. Now, to come out of the resultant economic quagmire, President Muhammadu Buhari has formally launched his administrationâ€™s economic recovery and growth plan, ERGP. The so called medium term plan is aimed at three broad strategic objectives, 1. restoring what the government has described as sustainable, accelerated inclusive growth and development; 2. investing in the people; and 3. building a globally competitive economy. The plan is obviously ambitious in targeting a real GDP growth rate of about 7.0 percent by the end 2020, given that growth forecasts by most analysts suggest difficult conditions throughout 2017 and 2018, with real GDP increases well below 2 percent. What is important and needed in any case is to have a very brisk pace of economic growth, driven by investments in agriculture and processing. If in addition we add innovations into power supply and industrial activity we can soon start to see sustainable economic growth numbers outside the 10 percent range. Inclusive growth is often elusive in developing countries when annual real GDP increases average well below 10 percent. I like the fact that the ERGP is bringing focus to investment in people. By this I believe they mean robust and consistent training programs for workers and unemployed graduates. Switching mechanisms to achieve desired attitudes must be in place for all workers and literally every one. I commend the excellent job the Central Bank of Nigeria is doing to eventually achieve exchange rate stability and harmony, as any continued exchange rate and price volatility will cause investors to wait and see. Folks, if the economic recovery and growth plan is to work, the government will need to immediately take steps to engage the people. The government cannot do it alone and the people should not wait and see. I am Magnus Kpakol and that's my view.
Posted: Apr 11th, 2017 @ 03:34:25 AM