X-Ray of PBAT Administration (Activity Based) By Kenny Odugbemi
We are made to belief and come to terms with this fact that there is total deregulation of petroleum products,from grapevine, current administration still currently spend N1trn monthly on petroleum subsidy,this is evidently supported by the fact that PMS in Nigeria is still most affordable and still the lowest in Africa and there is still smuggling activities to near by Nation West African subregion
What do our DFI’s and Multilateral lenders institutions expect from Nigeria
✓Conservative fiscal policy
✓Tackling of our endemic corruption
✓Enable competitive environment
✓Guarantee Equity and Fairness in Forex market
✓Enforce all contractual terms
✓Meet all “forward” obligation as par agreement
Refined oil importation
It is certain that the poor government still subsidize significantly FX portion of PMS price
Lack of effective effective monitoring smuggled PMS tanks across our porous border (unmanned) is still encouraging smuggling hence we are still subsidizing our neighbouring Countries
Forward consequences
In Nigeria, we have no substantial contribution from our local production to support our 47million litre consumption on monthly basi,hence all supplies still come from international oil (producing/marketing) organizations at global market price
Focus on Nigeria’s Economy
(critical issues at stake)
*There is lack of articulated socio-economic program to transform Nigeria’s fortune that can alleviate economic hardship
*There is lack of concrete economic program hence there exist reactionary vacations following public outcry of current administration policy pronouncement
*Government have not been able to conduct impact assessment studies on mitigation plan against consequences before the pronouncement of most audacious policies hence not acting as a dynamic action oriented progressive government that focuses more on common citizen welfare hence the government tend to be reactionary giving out money without dealing with the root cause of all our protracted long terms that they inherited from subsequent administration,hence citizens can not appreciate goals and Vision as all actions remain repulsive and reactionary with mirage in sight
*Present lack inclusivity from other parties and non party members who are credible Nigerians of sound integrity with track record of performance of dealing with our local problems in their current democratic governance system, present government is completely insulated from other impactful structure that could contribute meaningfully to our National development
Monetary outlook
MPC increase MPR to 22.75% ,hence the lending rate through our Banks can not be less that 35%,this will make organizations to reduce thier borrowing unless it is absolutely necessary
Impact on liquidity
Lack of cash in circulation will reduce demand in the market this will affect price of commodities thereby reducing inflation,it will be advisable for CBN to incentivise people with very deep pockets to invest in high investment yields,leveraging on over $20b diaspora must be our government target to raise FX liquidity
My Suggestions
*PBAT government must act as a matter of urgency
*Stimulate indigenous local Manufacturers to promote strategic investment in our key economic segments
It worthy to state that we have spent hundreds of millions of dollars to attract DFI’s yet borrowing contribute 60% of our Capital formation,DFI’s still below 20%
*Set out realistic, pragmatic transformation agenda considering our current economic resources
*Set out social Welfare structure that will touch individual life ,as this will drive meaningful contribution towards the building of our common prosperity,enrich life with strong values with robust peoplecentric approach that focuses on building robust stakeholders relationship devoid of ethnic, religion,and political party sentiment this will make creative impact on the citizen socioeconomic activities that can transform thier life
*Government must reshape our financial landscape using current technology AI, Blockchain across MDA’s and three tiers of government,this will block financial loop holes with guaranteed effectiveness and efficiencies
*Government must harness and incentivise clean energy sources through PPP’s innitiatives to reduce carbon prints to foster greener planet for us to move from our consumption to production mode,thereby generate exports that can earn sufficient forex whilst reducing import duties on some essential production related goods
*Government must facilitate and guarantee infrastructure with high efficiency and safety
*Government must stand as a beacon of Innovation, integrity, progressive development with these values
Probity and accountability
Transparency
High inclusivity of gifted Nigerians with non-party affiliation
*Government must build robust human capacity channel by combining diverse expertise with unwavering dedication that can uplift and reshape our landscape
*Government need to capture our diverse assets and encourage meaningful merger,acquisition in our public and private sectors for enhance growth of industries driven by PPP inniatives as this effort will add values and bring sustainable improvement to , communities,business and rural development
Conclusion
Nigeria all round resources -human, social economic and natural resources (crude oil and valuable mineral resources) does not belong to the powerful or rich people, hence we need to stop mismanaging and misappropriating this resources at the detrimental of the poor masses,hence we need to hold this administration accountable at all time