FG: Global Meltdown Threatens Vision 2020

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FG: Global Meltdown Threatens Vision 2020
From Juliana Taiwo in Abuja, 02.17.2009
The Federal Government has said the current global financial crisis has greatly affected econo-mies of most countries of the world and posed a threat to Nigeria over the attainment of the broad objectives of vision 2020.
According to President Umaru Musa Yar’Adua who spoke at the inauguration of the Business Support Group (BSG) for the Vision 2020, to move Nigeria’s economy to be among the top 20 economies in the world “requires a significant improvement on the current state, supported by a clear and realistic path to its realisation.”
President Yar’Adua was represented by the Vice-President and Chairman, National Plan-ning Commission, Goodluck Jonathan. The BSG is chaired by First Bank Chairman, Alhaji Umaru Matalab.
Despite the threat by the financial meltdown, President Yar’Adua said the government was not losing focus of raising its Gross Domestic Product (GDP) from the current $294.8 billion to $900 billion (about 300 per cent growth rate) by 2020.
The country also hopes to move from its current 40th position in the world’s economy and third in Africa to be among the top 20 economies and the first in Africa by 2020.
To achieve this, the President said Nigeria must improve her education and health delivery systems in order to build an effective human capital to drive development. Again, technologically, the Nigerian system of production and innovation will have to change radically to stimulate growth in key sectors of the economy,” he added.
The President stressed that the BSG’s commitment as well as building synergy among the various sectors was crucial at this time of economic diversification and recovery.
“I remain very convinced that if the broad policy objectives and strategies for achieving our vision statement are properly articulated, and public opinion as well as support are effectively mobilised, it would definitely galvanise all segments of our society to greater efforts in our quest for economic growth and national development,” he said.
The BSG’s terms of reference includes among other things, working to become the platform through which the private sector is expected to contribute actively to the envisioning process for Nigeria’s future.
The group will be guided by three objectives: to mobilise the private sector, stakeholder involvement and input in the development of the vision document.
It is also expected to mobilise public opinion and support for the implementation process of Vision 2020 and assist in the mobilisation of necessary resources including funding for the process.
The President said there was no better time for envisioning a future for Nigeria than now, “more so, when events in the last few years have shown that the time is ripe to launch Nigeria into the global arena as a major player and the leader in Africa”.
He added: “Nigeria’s economic potential is well-recognised. The country’s considerable resource endowment and costal location should ensure strong growth. However, we have been talking about this potential since independence but have realised very little of it.
“We have had a history of economic stagnation, declining welfare and social and political instability. The time to take the bull by the horms is now. We must ensure that the nation’s talk about potential becomes a reality.
“Although we have made some progress in the key areas of the economy, there remain daunting challenges that we must address. Nigeria is at a critical juncture where policy choices over the next few years will determine the sustainability or otherwise of the progress achieved. We are also faced with the Herculean challenge of meeting the Millennium Development Goals (MDGs) by the year 2015. Achieving these necessitate that we have a clear mental picture of where we are going and how we intend to get there. The Vision 20:2020 will outline broad policies and strategies to be pursued to accelerate economic growth and development of the nation.”
Following the Vision 2020 framework, the country hopes to be peaceful, harmonious and have a stable democracy by 2020; have a sound, stable and globally competitive economy with a GDP of not less than $900 billion and per capita income of $4000; adequate infrastructure services that support the full mobilisation of the economic sector and a health sector that supports and sustains a life expectancy of not less than 70 years while reducing to the barest minimum the burden of infectious diseases such as malaria, HIV/AIDS, etc.
President Yar’Adua said the government was able to arrive at the 300 per cent growth rate based on the key parameters for ranking global economies which include level of GDP, high and growing; investment level in key sectors, not less than 40-60 per cent of GDP; per capital income, not less than $10,000; unemployment level, less than 10 per cent and education, high and balanced.
Others were infrastructure development, high; technology intensity; energy consumption, high, and level of capacity utilization in manufacturing, not less than 75 per cent.
The President urged Nigerians not to be under any illusion that actualising our aspiration of joining the league of the 20 largest economies in the world would be easy.
He said: “As Dr. SP Gupta (India Vision 2020) aptly puts it: A vision statement is neither a prediction of what will actually happen nor simply a wish-list of desirable, but unattainable ends. Rather, it is a statement of what we believe is possible for our nation to achieve, provided we are able to fully mobilise all the available resources, human, organisational, technological and financial….”
In his welcome address, the Minister and Deputy Chairman, National Planning Commission, Dr. Shamsuddeen Usman, said the Vision 2020 was a collective dream to join the league of advanced nations in the next 11 years.
He said Nigeria must rise from its current third position with a gross domestic product of $294.8 billion to surpass Egypt ($432.9 billion) and South Africa $467.6 billion) among other world leading economies.
Usman said: “The pre-requisites cover political, economic, social, technological and other spheres. On the political sphere, Nigeria needs to maintain a stable polity for the next 12 years and beyond. Economically, Nigeria has to double the present growth averaging 6.5 per cent and sustain a consistent GDP growth rate of 12.5 per cent or higher, in the next 12 years, to surpass these countries (that is assuming they remain static).
“The current global financial crisis has of course greatly re-ordered the ranking of countries. This provides both an opportunity and a threat for Nigeria to attain the broad objective of Vision 2020.
“Socially, Nigeria must improve her education and health delivery systems, in order to build an effective human capital to drive development. Technologically, the Nigerian system of production and innovation will have to change radically to stimulate growth in key sectors of the economy, in order to raise the GDP from the current $294.8 billion to $900 billion.
“It implies that Nigeria must have adequate infrastructure that supports the full mobilisation of all economic sectors, as well as a modern and vibrant education system which provides opportunity and facility for every Nigerian to achieve his or her potential. Furthermore, it implies that Nigeria has to develop a modern, technologically enabled agricultural sector that guarantees national food security, a vibrant and globally competitive manufacturing sector and a health sector that supports and sustains a life expectancy rate of not less than 70 years.”
Members of the BSG include Mr. Femi Otedola, Dr. Mike Adenuga, Alhaji Aliko Dangote, Mr. Jimoh Ibrahim, Mr. Tony Elumelu, Mr. Remi Olowude, Chief Molade Okoya-Thomas, Prof. Ode Ojowu, Mr. Oba Otudeko, Prof. Ndi Okereke-Onyiuke, Alhaji Abdulkadir Dantata, and Alhaji Abdulsamad Isyaku Rabiu.
Also in the team are Mr. Jim Ovia, Maj- Gen. Muhammadu Magoro (rtd), Gen. A.B. Mamman, Mr. Mohammed Hayatuddeen, Mallam Mohammed Dagash, Alhaji Mohammed Arzika, Mr. Kola Abiola, Mr. Jacobs Ajekigbe, Alhaji Ibrahim Coomassie, and Mr. Hakeem Belo-Osagie.
Others are Chief Emeka Offor, Mr. Felix Ohiwerei, Mr. Erastus Akingbola, Mr. Atedo Peterside, Mr. Basil Omiyi, Mr. Bernard Verr, Mr. Bashir Borodo, Mr. Ayodele Harry-Akande, Alhaji Azeez Alao-Arisekola, Mr. Emmanuel Ijewere, Chief Emmanuel Iwuanyanwu, Mr. Aigboje Aig-imoukhuede and Mr. Adebayo Ligali.
From the media among others are Chairman, THISDAY Newspapers, Mr. Nduka Obaigbena, the Managing Director of THISDAY, Mr. Eniola Bello, Chairman, Punch Nigeria Limited, Chief Ajibola Ogunshola, Vanguard Publisher, Mr. Sam Amuka-Pemu, Chairman of DAAR Communications, Chief Raymond Dokpesi, Leader-ship Publisher, Sam Nda Isaiah, the Editor of The Nation, Mr. Gbenga Omotoso and Chairman, Editorial Board of The Guardian, Dr. Reuben Abati.