Osinbajo to Nigerians: no austerity measures

•Vice President Osinbajo (fourth left) and (from left) Adeyemo, Okorocha, Ambode, Edun, Ashiru and Pompermaier at the opening of the forum...yesterday. PHOTO: SOLOMON ADEOLA

THOSE demanding the Muhammadu Buhari administration’s economic agenda yesterday got a reply.

Vice President Yemi Osinbajo used the platform of The Nation’s First National Economic Forum in Lagos to make what many described as so far the most far-reaching explanation of the government’s plan.

This year’s budget, according to Osinbajo, will “stimulate the economy rather than impose undue austerity on the citizens” – contrary to the fear of many.

“It is pathetic that a nation with over 170 million people benchmarked its budget on the price of oil. We must look beyond oil because it disturbs us from looking at other sectors. In order to move the country forward, we must reduce the Federal Government’s and states’ dependence on sharing revenue made from oil sales,” Osinbajo said to the applause of a huge audience of senior government officials, politicians, media chiefs and ordinary folks.

He said the government was aware of the overwhelming challenges confronting Nigerians, assuring all that the ongoing reforms in various sectors point to the fact that the situation will soon be a change.

Said the professor of law and Senior Advocate of Nigeria (SAN): “The foundation for a strong economy demands that we have appropriate fiscal policies that will help the country that is arising from a very low rate of VAT and a low taxpayer’s base. We are focusing on increasing the country’s taxpayers’ base. We are committed to expanding the tax net.

“For instance, 30 per cent of the country’s budget has been earmarked for capital expenditure.

“Non-oil sources, comprising company income tax, VAT and others, are expected to contribute N1.5 trillion, which is more than the estimated revenue from oil. This is unprecedented in the history of the country.”

Governors Akinwunmi Ambode (Lagos) and Rochas Okorocha (Imo) also spoke on the way forward for states, if they must meet the expectations of the people.

Oyo State Deputy Governor Moses Adeyemo, who represented Governor Abiola Ajimobi, and Mr. Bimbo Ashiru, who represented Ogun State Governor Ibikunle Amosun, also spoke on how the nation can wriggle out of its economic crisis.

Expected to speak today – the second and final day of the summit – are Borno State Governor Kashim Shettima, Plateau State Governor Simon Lalong, Edo State Governor Adams Oshiomhole and acting Managing Director of Bank of Industry (BoI) Mr. Waheed Olagunju.

Others are Nigeria’s former High Commissioner to Australia Amb.Ayo Olukanni, United States/Africa Chamber of Commerce representatives and the Manufacturers Association of Nigeria (MAN).

Osinbajo said the Federal Government will not reverse the privatisation in the power sector because the government is not known to be good managers of businesses.

He outlined the government’s position on job creation, the power situation and a myriad of other burning issues, including infrastructure.

According to him, what happened to the former national telecommunication firm NITEL and the defunct Nigeria Airways are enough example to prove that government should not be directly involved in running businesses.

He said the government will sustain the privatisation of the power sector while it continues its push for the provision of gas to power the existing power generating plants.

Nigeria, according to Osinbajo, has in excess of 12,000Megawatts of installed generating capacity, but it has just about the chance of wheeling only about 5,000Megawatts. He pointed out that much investment is required to provide the transmission infrastructure to transport the excess to the end users.

“Even if we transmit the 5,000megawatts currently generated, over half of it will be lost because of inadequate infrastructure,” the Vice President said.

Osinbajo, who sympathised with Nigerians for the harrowing experience of the lingering fuel scarcity,  said the government is pushing for co-location of refineries  to the existing ones to increase refining capacity, adding that the building of railway lines would be intensified to increase volume movement of goods and petroleum products at reduced cost.

On projects, Osinbajo mentioned the Lagos-Ibadan Expressway and the Benin-Ore road as among the 33 the government has scheduled for completion, but the government is not considering starting new projects.

On rail development, he said the Federal Government was in the process of completing the Abuja-Kaduna rail line. The Lagos-Kano rail and the Lagos-Calabar rail axis, are  among top priority projects.

Osinbajo praised The Nation as a newspaper house that has carved a niche for itself as the locus of progressive thinking through an array of distinguished columnists, who, in his words, “serve us a menu of crisp, critical analysis and writings on a daily basis. This is of course, in addition to its role as a newspaper of repute which tells the news as it is without garnish, sensation or unnecessary hyperbole.”

The event attracted important personalities, including the Chairman of the Board of Directors, Vintage Press and publishers of The Nation, Mr. Wale Edun, Professor Adebayo Williams, Hon. Wale Oshun, Mr. Ayo Opadokun, Professor Olatunji Dare, Secretary to Lagos State Government Tunji Bello and top government officials from Imo State, among other dignitaries.