President buhari economic policy has received lots of critics ever since the policy was made public. The policy has received many remarks from top economist in the country including Obi Ezekwesili, Emir Sanusi Lamido, Professor Charles Soludo, Okonjo Iweala, among others.
In this article, I will be presenting to you four of the key sector or component where President Buhari economic policy hinged upon. I will also analyse each of them, how far it has performed, and policy option.
Here is the preamble of President Muhammed Buhari speech when he was addressing the audience concerning his economic policy.
“I am going to throw at this gathering some random policy options filtered from across the spectrum of our stakeholders on four (4) selected sectors of our economy. These are: – Agriculture – Power – Manufacturing – Housing
I have not touched Education, Science and Technology pointedly because these related subjects require a whole retreat by themselves.” Now the policy in details.
Agriculture: Agriculture is the major focus of President Buhari administration economics policies. Please, note that this is not all the president policy but his economic policy.
According to the president, agriculture for long has witnessed half-hearted government policy, suffering from inconsistencies and discontinuities policy maybe due to change in government.
He maintained in the article that Nigeria real wealth lies in farming, livestock, hatcheries, fishery, horticulture and forestry. He stressed that the problem with the Nigeria agricultural sector include high cost of agricultural inputs, fertilizers, pesticides, and labour.
Others include importation of subsidized food products such as rice, corn, garri etc., lack of agro-processing factories leading to wastage of agricultural products.
Here is his policy to solve agriculture problems
- Inform the public in all print and electronic media on government efforts to increase local food production to dampen escalating food prices.
- Partnering with the commercial banks to increase their lending to the agricultural sector.
- Provision of feeder roads by state governments to enable more effective evacuation of produce to markets and processing factories.
- Involving bank of industry to increase agriculture loan to small scale farmers.
Buhari Agricultural policy Evaluation
- President Muhammed Buhari and his economic team have taken bold step by partnering with bank of industry through “Youth empowerment programme-YES” to train some Nigeria graduate on entrepreneurship especially in the area of agriculture.
- Though the government has not disbursed any form of loans to the youth but have train the first set while the second set is under training.
- The president banning of key important agricultural products without considering gestation period, that is the lag time it takes in planting agriculture products and harvesting same. This has caused inflation in the country, causing economic recession .
- The president agriculture policy has also failed to actively involve the local/rural dwellers in the campaign for sustainable agriculture leaving it at the mercy of the state government.
- The president should monitor the loan disbursed out to ensure most of them will not enter into bad debt, and also provide measure to stock bumper harvest to prevent glut in the market which can discourage farmers. He scored 58% success in agriculture policy.
POWER: The president addressing the epileptic nature of power supply in the country, added that power is the joke of the day in Nigeria, and promise to solve the pending problem. He added that in the next three years his government will provide ten thousand megawatts distributable power.
He identified some of the problems in the sector to includes: Low supply of gas to power plants due to Vandalization of pipelines by the terrorists.
“Power fluctuations, which damage manufacturing equipment and household appliances. Low voltage which cannot run industrial machinery.”
Here is Buhari policy to solve Power problems
- Full Privatization of the electricity company to ensure accountability on the part of the organization.
- Adequate regulation of the activities by the National Electricity Regulatory Commission (NERC).
- Government to fast-track completion of pipelines from Gas points to power stations and provide more security to protect gas and oil pipelines.
Buhari Power supply policy Evaluation
- The government is yet to achieve any success or make any meaningful efforts in this area.
- Pipeline Vandalization is still on, and the government has not done much to bring it to an end.
- The government is still considering fully privatizing electricity in the country but is yet to do that.
- Power supply failure coupled with escalating fall in naira has led to the collapse and closure of many business in the country. This is among the major causes of the recession going on in the country.
- The president should improve negotiation with the militants to prevent Vandalization, Empower National Electricity Regulatory Commission (NERC) to increase power supply. He scored 25% in power supply policy.
If you haven’t read my post on the causes and solution to economic recession in Nigeria, please do that now before you continue.
MANUFACTURING: Reviewing his policy on manufacturing sector, he noted that the manufacturing sector are groaning and frustrated today because of lack of foreign exchange to import raw materials and spare parts.
He identified some problems in the sector to include: Inadequate Power, Roads infrastructure, insecurity leading to increase in costs of making Made-in Nigeria goods pricier than imports.
High Cost of Borrowing Money which make manufacturing unviable and unprofitable in the country. Lack of Long Term Funding as majority of the banks funding are short term lived due to the sources of liabilities.
Buhari policy to solve Manufacturing sector problems
- To fast-track the infrastructure Development Fund in order to unlock resources that can address infrastructural deficiencies in the country.
- Fiscal incentives will be given to Small and Medium Enterprises (SMEs), which prove themselves capable of manufacturing quality products good enough for export.
- Launching of a fresh campaign to patronize Made-in-Nigeria goods.
Buhari economic policy on manufacturing sector Evaluation
- Through partnering with bank of industries, has trained some youths on entrepreneurship but is yet to give any form of loan.
- The lending rate to the sector instead of reducing as promised by the government is increasing making loan inaccessible to the sector.
- The government has not implement any meaningful project that will increase the infrastructural development of the country in terms of power, roads, and others.
- Campaign of patronizing made-in-Nigeria goods is low partly because no effort is made on the part of the government to make the business sector environment conducive for investors. In order words nothing is being manufactured in the country, few industries are closing down because of high operating cost, multiple taxation, among others.
- The president and his team is really sleeping concerning this sector. He scored 29%
HOUSING: Addressing the housing needs of the country, he said that Nigeria housing deficit is estimated at about sixteen million units. He further stated that after much consultation with both local and foreign investors, the following problems were identified with the sector:
Severe shortage of housing, High cost of rent, and unaffordable prices for prospective buyers especially middle and low-income earners.
Other specific problem to housing are red tape, corruption and plain public service inefficiency lead to long delays in obtaining ownership of title documents.
Economic policy to solve Housing problems in Nigeria
- A review of land acquisition laws to make the process of acquiring statutory right of occupancy shorter, less cumbersome and less costly.
- Ministries of Works and Housing should increase their computerization of title registration system for greater efficiency in land acquisition and documentation.
- The establishment of mortgage institutions with transparent processes and procedures.
Buhari economic policy on Housing Evaluation
- Average Nigerians don’t know anything about land acquisition law governing the country making the process less transparent.
- The government is yet to commence the execution of the housing project after one year in office.
- Most Nigerian don’t have access to good accommodation, where on average over three person(s) live in a single room.
- The government has not scored any point or has scored below 20% on housing policy.
The president economics policies has been critised by many individuals as I earlier noted. One of such critics was that of the formal CBN governor Professor Charles Soludo, who said the President’s economic policies, since he took over last year, were still based on campaign promises.
He argued that, “Nigeria is facing unprecedented and tremendous political and economical challenges with global and local dynamics. “Regardless of these challenges, opportunities and possibilities abound if we address some fundamental issues.
He further argued that Nigeria government ought to a developmental plan anchored on realising inclusive and sustainable growth. “Inclusive and sustainable growth cannot be achieved without conscious efforts to deconstruct the dynasties of poverty and maximise states and Nigeria’s comparative and competitive advantage.”
He recommends “the restructuring of the economy from consumption-driven to production-based and consistency in micro-economic policies.”
The government of president Buhari economics policy is hinged on four key component- Agriculture, Manufacturing, Power, and Housing. The policy has not yielded any result as Nigerians are still wallowing in poverty and has took to the street in search of greener pasture.
Some of them has got themselves involve in some ponzy scheme like MMM to make better living. Before you join MMM read my post on Implication on MMM Nigeria on the economy and individuals.
Government is therefore advised to make adequate efforts to solve the current recession in the country as a sure way to start before it will enter depression. Read my article on solution to Nigeria recession.
Kindly drop your view on the state of Nigeria economy and what you think is missing or should be done. Thank you.