President Bola Tinubu recently inaugurated the Presidential Economic Coordination Council (PECC), which will formulate new strategies to revamp the ailing economy. The PECC was set up in March, with the President as Chairman. At the inaugural ceremony in Abuja, the President listed the challenges ahead and tasks before the Council members, which among other things, include advising the federal government on the kind of policies to roll out, and the best way to implement them in the best interest of the nation and the people.
The PECC members were also urged to ensure that the government meets its target of getting crude oil production of 2 million bpd. The President announced a N2 trillion package to stabilise the economy. This includes N350billion for health and social welfare, N500billion for Agriculture and Food security, N500billion energy/power sector, and N650billion for general business support.
The stimulus package is laudable. However, we call for its seamless implementation. Nigerians expect good results from the initiative. Agriculture is one area the PECC should give due attention without neglecting other sectors of the economy. Without doubt, Nigeria can feed its population if agriculture is prioritised. The members of the PECC, drawn from the government and the private sector include President of Dangote Group, Aliko Dangote, Chairman of United Bank for Africa Plc, Tony Elumelu, CEO, Financial Derivatives, Bismarck Rewane, Prof. Doyin Salami and others. They will serve for one year. Apart from the President, government officials on the council include the Vice President, President of the Senate, and Governor of the Central Bank of Nigeria (CBN) and the ministers of Agriculture and Food Security, Aviation and Aerospace Development, Budget and Economic Planning and others. The council will report to the President every month.
We commend the government for setting up the economic council consisting of eminent and experienced Nigerians from the public and private sector. Indeed, some of them served in previous economic teams of both Goodluck Jonathan and Muhammadu Buhari. We hope that the contributions of the members of the council will help to rejuvenate the economy. For the economy to be revamped, the President should listen to them and implement some of their recommendations.
The economy is in dire straits and requires urgent revival measures. Sadly, time is running out. It is appropriate that the President also tasked the PECC members to completely look at what his administration is doing that will bring life to the economy. In that direction, we urge the members to see their assignment as a privileged national service and a unique opportunity to chart a new economic path for the country.
We urge the Council members to tell the government the truth, without fear or favour. Any economic policy of the government that is not working should either be reviewed or jettisoned. Revamping the economy is doable within an acceptable timeframe. It will not be indefinite. It is obvious that some uncoordinated policies of the government have largely contributed to the poor state of the economy.
They also have led to the exit of many multinationals, stifling businesses and foreign investments inflows, ultimately resulting in the current hardship in the country. If the economy will recover from its current problems, it is time to walk the talk and build the economy with clearly defined objectives aimed at diversifying the economy away from crude oil. Our over-reliance on crude oil has been the greatest undoing of the economy.
The emphasis now should be on developing the non-oil sector, including the much-neglected agriculture and the solid minerals sector, where foreigners and illegal miners are having a field day. The government’s effort to develop the solid mineral sector is encouraging. But it requires more verve and impetus. The business environment should be made attractive and friendly and with incentives to new investors. Presently, our business environment is choking and suffocating with inclement policies, including multiple taxation and slow pace of implementing the ease of doing business.
The current 30 per cent interest charged by banks under the keen watch of the Cardoso-led CBN will stifle economic growth and should be urgently reviewed. The high interest rate will definitely stall economic growth and the creation of more jobs. Above all, the council should do everything possible to revamp the manufacturing sector.