Nigeria is at a crossroads. Just over a year ago, people voted in a
historic democratic election to end corruption and business as
usual, opting instead to build an economy that delivers for all
Nigerians.
The old order was based on an unsustainable commodities
supercycle. While the boom had many positives and contributed to
Nigeria becoming Africa’s largest economy, it fostered an
epidemic of corruption and inefficiency. Foreign businesses and
financial institutions also benefited as some people spent and
sometimes hid huge sums abroad, lifted by the rising tide of oil
exports and dollar revenues.
Now we are living in a new world of low energy prices. The
economy has slowed while unemployment and inflation have
jumped. Longstanding structural imbalances and overdependence
on imports have been cruelly exposed. We are an oil-rich nation
that imports most of our gasoline. We are a farming nation that
imports most of our basic food staples. This is simply not
acceptable or sustainable.
Our solutions must be in proportion to the challenges.
Fundamental change takes time and we are driving not one but
three changes to reposition Nigeria for inclusive growth.
• Restore trust
We have begun to tackle the endemic corruption and
mismanagement that is crippling our economy and corroding trust
in our institutions. The anticorruption fight is at the heart of
combating poverty and improving security. We have stepped up
enforcement and new prosecutions to get our house in order, and I
have called for foreign governments to work with us to identify
where funds stolen during previous administrations are lodged and
for multistate cooperation to combat oil theft.
Fighting corruption is not enough. We need accountable
government and a public sector that can do more with less. We
have already taken initial steps by bringing all government
finances into a single treasury account where we can monitor
spending and impose discipline, implementing zero-based budgets
and benchmarks targeted at waste and fraud, and establishing
electronic platforms for government agency interface.
• Rebalance our economy
In a world of lower oil prices and dollar revenues, the only
sustainable path is to reduce Nigerians’ overreliance on imports.
We must rebalance our economy by empowering entrepreneurs
and producers, big and small, to create more of what their fellow
Nigerians demand. The supply of foreign exchange to the economy
must be increased. This requires radically increasing exports and
productivity and improving the investment climate and ease of
doing business.
Nigeria’s growth and job creation will be led by the private sector.
We are a young, entrepreneurial society with vibrant success
stories in new industries such as telecommunications, technology
and entertainment. Government is doing its part to lower taxes on
small businesses, eliminate bureaucracy to bring the informal
economy out of the shadows and provide development funding for
priority sectors such as agriculture. The central bank has moved to
introduce greater flexibility in our exchange-rate policy. These
actions are a downpayment on our people’s ability to succeed.
• Regenerate growth
We must reposition our economy by attracting investment in
domestic industries and infrastructure. Nigeria has huge untapped
gas reserves and also a critical shortage of electricity. Our private
sector loses too much of its revenue due to brownouts and power
outages. Half of my fellow Nigerians have no access to the power
grid. Investment in our power infrastructure, restructuring of the
state-run oil-and-gas sector and development of other industries
such as solid minerals, metals and petrochemicals will help to
create a virtuous circle of growth and exports while creating jobs
and reducing poverty.
I am optimistic that our actions are providing the breathing room
Nigeria needs during this period of fundamental change. But we
cannot improve living conditions and restore fiscal health without
making people feel safe and secure—just as we cannot defeat
militancy without reducing poverty and dislocation.
One of our main achievements this past year has been to unite
regional and global allies to push back Boko Haram. What we do in
the next three years to build an economic bridge to Nigeria’s future
will be just as important for bringing lasting peace and prosperity.
Mr. Buhari is the president of Nigeria. Source: Wall Street Journal. June 13th
historic democratic election to end corruption and business as
usual, opting instead to build an economy that delivers for all
Nigerians.
The old order was based on an unsustainable commodities
supercycle. While the boom had many positives and contributed to
Nigeria becoming Africa’s largest economy, it fostered an
epidemic of corruption and inefficiency. Foreign businesses and
financial institutions also benefited as some people spent and
sometimes hid huge sums abroad, lifted by the rising tide of oil
exports and dollar revenues.
Now we are living in a new world of low energy prices. The
economy has slowed while unemployment and inflation have
jumped. Longstanding structural imbalances and overdependence
on imports have been cruelly exposed. We are an oil-rich nation
that imports most of our gasoline. We are a farming nation that
imports most of our basic food staples. This is simply not
acceptable or sustainable.
Our solutions must be in proportion to the challenges.
Fundamental change takes time and we are driving not one but
three changes to reposition Nigeria for inclusive growth.
• Restore trust
We have begun to tackle the endemic corruption and
mismanagement that is crippling our economy and corroding trust
in our institutions. The anticorruption fight is at the heart of
combating poverty and improving security. We have stepped up
enforcement and new prosecutions to get our house in order, and I
have called for foreign governments to work with us to identify
where funds stolen during previous administrations are lodged and
for multistate cooperation to combat oil theft.
Fighting corruption is not enough. We need accountable
government and a public sector that can do more with less. We
have already taken initial steps by bringing all government
finances into a single treasury account where we can monitor
spending and impose discipline, implementing zero-based budgets
and benchmarks targeted at waste and fraud, and establishing
electronic platforms for government agency interface.
• Rebalance our economy
In a world of lower oil prices and dollar revenues, the only
sustainable path is to reduce Nigerians’ overreliance on imports.
We must rebalance our economy by empowering entrepreneurs
and producers, big and small, to create more of what their fellow
Nigerians demand. The supply of foreign exchange to the economy
must be increased. This requires radically increasing exports and
productivity and improving the investment climate and ease of
doing business.
Nigeria’s growth and job creation will be led by the private sector.
We are a young, entrepreneurial society with vibrant success
stories in new industries such as telecommunications, technology
and entertainment. Government is doing its part to lower taxes on
small businesses, eliminate bureaucracy to bring the informal
economy out of the shadows and provide development funding for
priority sectors such as agriculture. The central bank has moved to
introduce greater flexibility in our exchange-rate policy. These
actions are a downpayment on our people’s ability to succeed.
• Regenerate growth
We must reposition our economy by attracting investment in
domestic industries and infrastructure. Nigeria has huge untapped
gas reserves and also a critical shortage of electricity. Our private
sector loses too much of its revenue due to brownouts and power
outages. Half of my fellow Nigerians have no access to the power
grid. Investment in our power infrastructure, restructuring of the
state-run oil-and-gas sector and development of other industries
such as solid minerals, metals and petrochemicals will help to
create a virtuous circle of growth and exports while creating jobs
and reducing poverty.
I am optimistic that our actions are providing the breathing room
Nigeria needs during this period of fundamental change. But we
cannot improve living conditions and restore fiscal health without
making people feel safe and secure—just as we cannot defeat
militancy without reducing poverty and dislocation.
One of our main achievements this past year has been to unite
regional and global allies to push back Boko Haram. What we do in
the next three years to build an economic bridge to Nigeria’s future
will be just as important for bringing lasting peace and prosperity.
Mr. Buhari is the president of Nigeria. Source: Wall Street Journal. June 13th
