Tinubu cites lack of electricity as the biggest obstacle to economic development

The national leader of the ruling All Progressives Congress (APC) party, Bola Ahmed Tinubu, has proposed a seven-point program that he says would revive the country’s struggling economy and drastically reduce its reliance on petrodollars. The APC presidential aspirant said his desire to succeed President Muhammadu Buhari was to further improve the economy of the country for the benefit of all Nigerians including the unborn generations. The former governor of Lagos noted that the lack of electricity was perhaps the greatest obstacle to the country’s economic progress, adding that the lack of electricity was inflating costs, undermining productivity, wreaking havoc on business global economy and job creation. distribution plant that ran out of power following a national grid collapse leading to blackout in Lagos, Nigeria’s commercial capital, on March 15, 2022. – From Nigerian airlines to bakers in Malawi, African countries are feeling the pain of the Ukraine crisis as supply disruptions increase inflation and oil prices drive up fuel costs. Global oil prices hit decade highs of more than $100 a barrel shortly after Russia invaded Ukraine, doubling diesel prices for African countries like Nigeria. Ukraine and Russia are the two main suppliers of wheat and grain to Africa and Western sanctions and disruptions are already driving up costs across the continent. (Photo by PIUS UTOMI EKPEI / AFP) “Our economic situation is literally and figuratively in the dark. The obstacles we face are not of a technical nature. We must convince the political and economic factors that are currently impeding our quest for reliable food to step aside so that we can obtain this essential ingredient for economic vitality,” he said. He said Nigeria must realize that no populous nation has ever achieved widely shared prosperity without first building an industrial capacity that employs a large number of people and manufactures a significant amount of goods for domestic consumption or l ‘export. According to him, “England, America and China have policies in place to protect key industries, promote employment and encourage exports, explaining that these countries represent the past, present and immediate future. national economic success. “A strong and common trend is their policies of buffering strategic industries in such a way as to allow for the expansion and growth of the overall economy. “We must therefore move forward with a national industrial policy that promotes the development of strategic industries that create jobs and drive economic growth.” “Whether we decide to focus on steel, textiles, cars, machinery components or other items, we need to focus on making things that Nigerians and the rest of the world like and want to buy. We need to partially reshape the market to achieve this. The presidential hopeful also proposed the need for the federal government to develop a policy of tax credits, subsidies that insulate critical sectors from the negative impact of imports. He recommended a national infrastructure plan, noting that roads, ports, bridges and railways needed to be improved and new ones built with the aim of developing a coherently planned and integrated infrastructure network. . He said, “A national economy cannot grow beyond the capacity of the infrastructure that serves it. Good infrastructure leads to a prosperous economy. The weakness of the infrastructures relegates the economy to misery. The government must take the lead. The focus on infrastructure has important corollary benefits. “Federal spending on necessary infrastructure spending has been empirically proven everywhere and at all times to stimulate recessionary economies and provide jobs in times of dire need. “Deficit spending in our own currency to advance this mission is neither a luxury nor a mistake. It is the linchpin of balanced and shared prosperity. We must overcome the economic, political and bureaucratic bottlenecks that prevent getting a reliable power supply. Tinubu also proposed a credit-based economy, saying credit for business investment was too expensive in Nigeria. “The nation’s long-term economic strength depends on how whose idle men, material and machinery we deploy in productive activities. And it highly depends on the rate of interest,” he said. He asked the Central Bank of Nigeria (CBN) to purge itself of his inordinate affection for high interest rates, arguing that lower rates were necessary for industrialists to borrow without fear that excessive borrowing costs would condemn them to debt irremediable.

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