Interacting With Readers
As a result of your emails to me in which a lot of my readers asked for a more interactive site, I have listened to your feedback and decided to devote more time on this forum to interacting with you. On my facebook profile, a lot of you ask me questions and I have decided to answer one question here. The remainder will be responded to on facebook, please see www.facebook.com/utomi
How will a President Utomi diversity the economy?”
My response is as follows:
Well first we have to significantly improve on the power situation in Nigeria. In my view the way to go about this issue is to separate it from politics. Irrespective of your feelings on your predecessor administration, there is the need to build on what they have done rather than abandon their efforts. For the short term, we need to get electric barges into our coastal areas and begin to feed the national grid while we continue with the NIPP and work to make it transparent.
Next we need to force the banks to make genuine credit available to regular everyday people and not just to importers of petroleum products and people with political connections. No one should have to pay for his house at once or build it with his/her own money. Banks have to be compelled by legislation first, but ultimately and more importantly by monitoring them to give credit to all sectors of the economy not just to those sectors with easy profits otherwise we will have lopsided economy where some are super rich while most are super poor.
Then we have to privatize all government enterprises and for those that are too sensitive for privatization we have to partner with the private sector. Nigerian Port Authority for example will never be free from corruption even if it is headed by a honest and capable man simply because the structure has been compromised by corruption, so for our air and sea ports, we need to bring in the private sector to partner with government and put their money into these ventures. Once private money is involved, corruption will reduce and efficiency will increase because private investors will not fold their hands and watch their investments go up in smoke.
Also, invariably government will have to stop importing fuel and refine locally. The only way to do this is by forcing the public sector to do so, because if you just ask them, they will not invest in refineries because of the easy and cheap profits of importing fuel. One way you can force them is by immediately placing huge taxes on profits from fuel imports. Now don’t misunderstand me. I am not saying we should tax fuel imports, I am saying we should tax the profits. For instance, if you import fuel for 10 Naira and sell for 20 Naira, the government will tax 7 Naira out of the 10 Naira profit you have made. This will make it senseless for them to pass the cost to the consumer because whatever profit you make, government will tax 70% of it. However, if you refine locally, government will give you a tax holiday (no tax at all). These people like money and when they see this, they will rush to build their refineries. However, you need a capable honest and steadfast leader to accomplish this because they will try to compromise you with bribes and you have to love Nigeria more than yourself to refuse such bribes.
Then, we need to encourage local manufacturing by banning imports of those products we can produce in Nigeria even if we are not producing enough. So Items like Fabrics and textiles, fruit juice and toothpaste, sugar, rice and cement, fish and canned meats will be banned. Nigerians will feel the pinch for a while because this will lead to scarcity, but it is the price to pay. When we are forced to patronize locally made products, our industries will start to improve and their owners will have more profits to plow back into their business which will improve the quality of the product and therefore improve sales which will make them employ more people. But for this to work, we need to face the Customs and Excise Department and rid them of their endemic corruption by getting someone with a passion and the patriotic drive to fix Nigeria like Nuhu Ribadu to probe and audit the place every year if not they will frustrate the goal.
At the same time with these activities, government has to devote massive funds to re building Nigeria’s transport infrastructure. I know we are not keen on statistics, but I carried one out with my funds and found that in Lagos alone, 78% of the working population spend 29% of their working hours in traffic. You can imagine how much we are losing to traffic congestion and bad roads alone in Lagos. Then magnify that nationally with the bad state of our inter state roads. We need to put money into repairing and building new roads nationally and then in Lagos, Kano, Ibadan, Port Harcourt and Abuja, we have no choice but to establish metro and rail lines as an alternative means of transport and in coastal cities like Lagos and Port Harcourt, we need to establish water based transportation like ferries because there is too much road traffic in Nigeria. Doing this will put hundreds of thousands to work building roads and rail lines and then open up the country so that Nigerians can begin to know Nigeria and fully understand and utilize the domestic opportunities they are unabe to utilize now because of inadequate infrastructure.
In addition to this, we need to establish and maintain peace in Nigeria so that foreign investors can come into invest. Merchants who buy cocoa, rubber, gum arabic and cotton from Nigeria will prefer to manufacture their products in Nigeria close to their raw materials and then ship only the finished product to the market, but they will not invest in Nigeria if there is no peace. We need to face those issues that lead to periodic ethnic and religious clashes. The issue of citizenship, settler versus indigene should be settled by making the place of ones birth his or her place of origin. Those who are afraid of outsiders coming in to compete with them should then know that their own kith and kin can equally go to these outsiders place and have the same rights there. But government has to enforce it strictly. We should allow Kano or Sokoto people settle and become indigenes in Jos, but we must also allow Jos and Plateau people settle in Kano and Sokoto too. If we do this, then we will see less of these clashes.
Also, the federal government has to show neutrality in religious matters by refusing to interfere in religious matters. The various pilgrim boards of the Muslim and Christian faiths should be left to the Supreme Counsel on Islamic Affairs and the Christian Association of Nigeria to run. Government should only provide regulations in conjunction with the adherents of the faiths and Nigeria’s constitution and equal funding. If this is done, religious crises will reduce.
Government will also enjoy peace if it can begin to rapidly develop the Niger Delta and work to reduce environmental degradation in the area. The idea of giving host communities a 10% stake in the Joint Ventures between the government and the Oil Multi-Nationals is welcome and should be practiced without politics.
Once there is peace in Nigeria, businesses will flourish.
Finally, in my view, perhaps the most important thing to do is to start taxing Nigerians. Not because we need money. No. But because Nigerians are too apathetic to the affairs of their government and do not care enough about how this country is run to get involved in forcing the government to live up to its responsibility. The reason for this is because we do not pay taxes and our money is not involved and as such we do not consider ourselves stake holders in Nigeria. However, if we pay tax, the discomfort that paying that money causes us will make us pay a closer attention to the government and how it is spending your money. If we are thus concerned, we will become also more concerned in who heads the government and we will insist on electoral reform and vote for the right people because our money is involved. Right now, a lot of Nigerians do not care who leads them or if elections are rigged, because the money that funds the government is from oil and is considered free money. You may understand this better if you think of yourself. If you have a lavish friend who spends money any how, you do not mind him and will even want to enjoy his lavishness. But if this friend borrows money from you and refuses to pay and starts throwing parties where he wastes money, won’t you be concerned? Won’t you begin to ask questions? Won’t demand for your money? Well, your friend is Nigeria and you the lender are the citizen. Nigeria does not own you. YOU OWN NIGERIA.
I could go on and on, but time does not permit me. However, the point I want to make is that it is possible to diversify Nigeria’s economy away from sole dependence on oil and we have no choice but to do it.
Once again, God bless Nigeria.
PU.



