Industry and economic Experts, Including the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI), have blamed the deteriorating state of the nation’s economy on poor policy framework and execution by the President Muhammadu Buhari led administration.
Recall that President Buhari recently compared his administration to his predecessor’s and announced that it fared better under his watch.
According to a report by the Punch, the organized private sector is unanimous that policies initiated and implemented by the current administration in the country have not translated into positive economy growth and real sector development.
Quoting the Chairman of the Gas Group, the Manufacturers Association of Nigeria, Ola Adebayo, the report said Nigeria’s economy and the industrial sector, in particular, are lagging behind under this government.
In his words: “One thing I have observed is that policy formulation is different from implementation. With the recent events, I don’t think the government has passed. We only have very good policies on paper, but the implementation has been lacking. Once there is no implementation, it becomes just an idea.”
For his part, the Deputy-President of LCCI, Gabriel Idahosa, said the president Buhari led administration has not been able to create the enabling environment for the private sector to invest in critical infrastructures like railways and airports.
“We don’t really need any complicated analysis to see whether the policies are addressing the issues of the business community.
“This Government’s economic model is not in the best interest of the people, whether it is power supply, the foreign exchange market, whether it’s a model that enables the private sector to invest in infrastructure in a manner that enables business to thrive, it is clear for all to see.” Idahosa said.
For his part, the Director-General, Nigerian-American Chamber of Commerce, Sola Obadimu, said President Buhari’s assessment of his administration’s economic policies does not reflect the realities on ground. According to him, the current regime should be humble to admit that it had failed in all economic indices.
In his words: “In the past seven years, we have witnessed the most volatile phases in our industrial life, for instance, if we pick the naira valuation as at when he came in and now, you will see the difference. Also the benchmark interest rate has been high at 13 per cent, making access to capital difficult. That has been unfriendly to industry.”
According to an economist and Chief Executive Officer, Center for the Promotion of Private Enterprise, Dr Muda Yusuf, between 2015 and now, the Nigeria’s economy has recorded over 200 % currency depreciation even as investors’ confidence has worsened within the period under review.
“The current situation now is almost unprecedented and, of course, you can’t compare that now to what the situation was in 2015. Look at our currency. What was the exchange rate even at the parallel market in 2015 and what is it now? Dr. Yusuf queried.
“We are talking of a depreciation of over 200 per cent or even more and that also has a very serious implication. Even the poverty situation in the land is much and the business confidence, Investors’ confidence has worsened between 2015 and now.”
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