The divergent views on the state of Nigeria’s economy by Dr. Ngozi Okonjo-Iweala, coordinating minister for the Economy and minister of Finance; and Mallam Sanusi Lamido Sanusi, governor, Central Bank of Nigeria (CBN) is worrisome.
It is even more disturbing when two key figures who are supposed to handle and manage the country’s economy are at loggerheads and cannot even agree on numbers.
While Okonjo-Iweala, would have Nigerians believe that the economy is moving in the right direction; Sanusi is raising red flags.
For instance, both cannot agree on the volume of foreign direct investment (FDIs) inflows into the country.
For Okonjo-Iweala, Nigeria attracted over $7 billion in FDI last year, making her the number one destination for investments in Africa; but Sanusi, waxed worriedly at the dwindling FDIs and warned of adverse consequences because of the steady depletion of the country’s foreign reserves.
According to Okonjo-Iweala, some of the important investments include $250 million investments by Procter and Gamble in Ogun State; $40 million in agricultural projects by Dominion Farms in Taraba State; $1.2 billion in fertilizer and petrochemicals by Indorama; a $200 million steel plant by Kam Industries in Ilorin and another $9 billion investment in petrochemicals and refinery complex by the Dangote Group.
The argument by the two government officials however pales in comparison with the realities on the ground.
Nigeria as an economic growth largely driven by capital-intensive sectors has not been able to generate the much needed jobs and poverty has remained very high.
As a result, Nigeria has a low Human Development Index (HDI).
Well-known experts have been consistently highlighting the weaknesses of the economy and suggesting various policy measures to address them.
Either these institutions and experts are wrong or the government’s economic team is misguiding not only their political leadership but also the people of Nigeria.
Experts have pointed out several weaknesses which include weak economic growth, higher inflation, high debt burden, re-emergence of balance of payments crisis, and most importantly, fiscal indiscipline which is believed to be fuelling macroeconomic instability.
In addition, energy shortages continue to plague industrial and commercial activities in the country.
Unless, government officials stop talking and start acting decisively, the economy may never get back on the path of recovery.
The economic team must present the true picture of the economy to political leadership and to the people of Nigeria.
Transparency is the best policy.