Until a few years ago, Africa Rising was
a dominant theme in conversations about the global economy. That
enthusiasm has since cooled, so that in newsrooms, think tanks and
conference panels, “Africa Rising!” has given way to a more questioning
“Africa Rising?”
While some of that pessimism may be
justified, we do not have the luxury of distracting ourselves with
lamentations about our current circumstances. Instead of hoping for
commodity prices to rise, African countries should seize the
opportunities that these times present — not least here at today’s U.S.-
Africa Business Forum — to lay a foundation for the kind of economic
growth that transforms the lives of our people.
One of our biggest challenges during the
boom years was that we failed to convert the benefits of high commodity
prices into more jobs and significant improvements in standards of
living. Hence the great debate, during those years, about how to ensure
that the growth became “inclusive”.
Now that we are face to face with the
vulnerabilities somehow hidden during the years of plenty, we should
turn away from the unhelpful habits of the past and chart a new course.
Since I signed the 2016 budget into law in May, Nigeria’s Ministry of
Finance has released more than N400 billion for infrastructure spending —
more than the total amount spent in 2015.
In the face of dwindling oil revenues,
we are turning to debt. We have begun raising a $1 billion Eurobond, our
first in three years. We are also raising debt from the World Bank, the
African Development Bank, the Chinese Exim Bank and other development
finance partners.
Unlike in the past, when borrowed funds were frittered away on unproductive ventures, we will ensure their investment in the revival of stalled road, rail, power and port projects, and in agricultural initiatives that will significantly boost domestic production of food. For far too long we have under-invested in infrastructure — the most critical element for creating sustainable economic growth. The net effect: an avoidably high cost of doing business in Nigeria.
Unlike in the past, when borrowed funds were frittered away on unproductive ventures, we will ensure their investment in the revival of stalled road, rail, power and port projects, and in agricultural initiatives that will significantly boost domestic production of food. For far too long we have under-invested in infrastructure — the most critical element for creating sustainable economic growth. The net effect: an avoidably high cost of doing business in Nigeria.
But even more important than what the
government is able to spend is the limitless investment potential of the
private sector. This is why one of our main priorities is creating an
environment in which private-sector capital can thrive. We are in
particular using Public-Private Partnership models to support
game-changing private-sector projects in power, refining, gas
transportation and fertiliser production.
We are also putting in place measures to
ensure that monies intended to revamp our infrastructure do not end up
in the pockets of corrupt officials and their collaborators.
Already we are investigating the theft
of several billion dollars in public funds by the previous
administration. We are not only bringing these corrupt officials to
justice, we are also setting up systems to make it impossible for such a
grievous abuse of public trust to happen again. And of course, we are
as committed to playing by the rule of law as we are to accounting for
every naira and recovering them for our treasury. These were funds meant
to build roads and railway lines and hospitals and schools, and to
equip our military — which has for the last seven years been fighting
one of the deadliest terrorist groups in the world.
In that regard, we are already seeing
the positive results of our anti-corruption efforts. Long starved of
both material and morale by the corruption in the military’s upper
echelons, our reinvigorated troops have now put Boko Haram permanently
on the back foot. Some of the more than two million persons displaced by
Boko Haram have started returning to their homes. Just last week, the
people of Nigeria’s northeast celebrated their first incident-free Eid
in years.
Our troops have rescued thousands of
men, women and children trapped in areas held by Boko Haram. To meet
their urgent humanitarian needs, we are working with the United Nations
and other partners to provide food, medical help and shelter. We will
strive to ensure that no victim is left behind, including the 218 Chibok
girls who have, since their abduction in April 2014, served as a global
symbol of the war against Boko Haram and a reminder of the horrors that
it has inflicted on innocent Nigerians.
Even though the times are still dire,
our economic recovery plan is already showing positive results.
Investment’s share in gross domestic product is at its highest since
2010. Inflation is slowing; manufacturing confidence is rising. People
are seeing and seizing opportunities to make money catering to the needs
of Africa’s most populous country. Finally, our Social Investment
Programme — the most ambitious in Nigeria’s history — will kick off this
month. In its first year it will provide cash transfers to 1 million of
our poorest people, hot meals to five million primary school children,
cheap loans to more than 1 million artisans and traders, and job
opportunities in health care, agriculture and software and hardware
development for half a million young people.
The journey ahead remains long and
difficult. Our double-digit inflation, currency turmoil and downgraded
ratings will not vanish overnight. We also know that the current
recession is partly driven by the production outages in Nigeria’s Delta
region, and we are confident that growth will accelerate as problems in
that region are resolved.
But the real story here is not the
challenges, which are all too visible, but the opportunities. We have
learned the necessary lessons. We will ensure that Nigeria does not slip
back into a lazy and dangerous dependence on the price of crude oil. We
will continue to insist on transparency and accountability in the use
of government funds. And we will build an economy that prioritises the
ease of doing business and investing, and that thrives on the
entrepreneurial energy and ingenuity of our people.
To achieve these objectives, Nigeria
needs robust and reliable partnerships such as we have with the United
States. This is why I value the Commercial and Investment Policy
Dialogue that we have just launched, and which we shall announce at
today’s U.S.-Africa Business Forum.
The months ahead will show not only that
Nigeria is on the rise, but that this “Rising” is real and lasting —
one that touches not just the statistical databases, but the lives of
the people who elected us to deliver positive change.
• This Op-ed by President Muhammadu Buhari was published in Bloomberg wednesday
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