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SPEECH DELIVERED BY HIS EXCELENCY, BARR IFEANYI OSSAI, DEPUTY GOVERNOR, ENUGU STATE ON THE OCCASION OF THE THIRD FRONTIER DISCOURSE ANNUAL PUBLIC LECTURE SERIES AND AWARDS TAGGED “THE POST SUBSIDY ECONOMY – EXPLORING BOLD INITIATIVES FOR ECONOMIC RECOVERY IN NIGERIA”  ORGANISED BY PACESETTER FRONTIER MAGAZINE ON SATURDAY NOV 18. 2023 AT HOTEL SUNSHINE PRESIDENTIAL ROAD INDEPENDENCE LAYOUT, ENUGU STATE.

GREETINGS EVERYONE HERE PRESENT.

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ALL PROTOCOL DULY OBSERVERD

I bring you greetings from the Government and Good people of our dear Enugu State.

It is with great pleasure and a heart filled with optimism to be here at this event with the theme; the post subsidy economy-exploring bold initiatives for economic recovery in Nigeria.

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Nigeria has the potential to become a major player in the global economy by virtue of its human and natural resource endowments. However, this potential has remained relatively untapped over the years. After a shift from agriculture to crude oil and gas in the late 1960s, Nigeria’s growth has continued to be driven by consumption and high oil prices. Previous economic policies left the country ill- prepared for the recent collapse of crude oil prices and production. The structure of the economy remains highly import dependent, consumption driven and undiversified. Oil accounts for more than 95% of exports and foreign exchange earnings while the manufacturing sector accounts for less than 1% of total exports. The high growth recorded during 2011-2015, which averaged 4.8% per annum mainly driven by higher oil prices, was largely non-inclusive.

Majority of Nigerians remain under the burden of poverty, inequality and unemployment. General economic performance was also seriously undermined by deplorable infrastructure, corruption and mismanagement of public finances. Decades of consumption and high oil price-driven growth led to an economy with a positive but jobless growth trajectory. After more than a decade of economic growth, the sharp and continuous decline in crude oil prices since mid-2014, along with a failure to diversify the sources of revenue and foreign exchange in the economy, led to a recession in the second quarter of 2016. The challenges in the oil sector, including sabotage of oil export terminals in the Niger Delta, negatively impacted government revenue and export earnings, as well as the fiscal capacity to prevent the economy from contracting. The capacity of government spending was equally constrained by lack of fiscal buffers to absorb the shock, as well as leakages of public resources due to corruption and inefficient spending in the recent past.

The current administration recognises that the economy is likely to remain on a path of steady and steep decline if nothing is done to change the trajectory. It is in this context that since inception, Government has made several efforts aimed at tackling these challenges and changing the national economic trajectory in a fundamental way.

However, it is recognised that more needs to be done to propel the country towards sustainable accelerated development. This is aimed at increasing national productivity and achieving sustainable diversification of production, to significantly grow the economy and achieve maximum welfare for the citizens, beginning with food and energy security. This Plan is a pointer to the type of Nigeria that the people desire in the short to medium-term, and encourages the use of science, technology and innovation to drive growth. It also provides a blueprint for the type of foundation that needs to be laid for future generations, and focuses on building the capabilities of the youth of Nigeria to be able to take the country into the future. Economic growth in Nigeria faces various supply constraints including fuel, power, foreign exchange, and business unfriendly regulations. In addition, there is a shortage of requisite skills and appropriate technology necessary to drive growth. This Plan focuses on overcoming and resolving these challenges. Leverage the power of the private sector. Economic recovery and transformative growth cannot be achieved by the government alone. It is essential to harness the dynamism of business and the entrepreneurial nature of Nigerians, from the MSMEs to the large domestic and multinational corporations to achieve the objectives of this Plan. The Plan prioritises the provision of a more business friendly economic environment, Promote national cohesion and social inclusion.

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Nigerians are the ultimate beneficiaries of more inclusive growth, therefore the initiatives set out in this Plan are aimed at ensuring social inclusion and the strengthening of national cohesion. Allow markets to function to drive optimal behaviour among market participants. The Plan prioritises the use of the market as a means of resource allocation, where appropriate. It also recognises the need to strengthen regulatory oversight to minimise market abuse. Stabilizing the macroeconomic environment Achieving agriculture and food security, Ensuring energy sufficiency (power and petroleum products) Improving transportation infrastructure, driving industrialization and focusing on Small and Medium Scale Enterprises.

In conclusion, Improving transportation infrastructure, driving industrialization and focusing on Small and Medium Scale Enterprises and tecnology is revolutionizing the field of our economy in unprecedented ways. As educators, we must embrace these technological advances and work to ensure that they are used to support and enhance economy. By doing so, we can create a more equitable, engaging, and effective economy that meets the needs of the nation.

Thank you all and God bless

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