With crippling power crisis, failed basic infrastructure and rising cost of refined petroleum products, it is agitating to the ears to hear the President say that the economy is growing at seven percent.

"Fellow Nigerians, our economy is on a strong footing with an average growth rate of about 6.9 percent, a single digit inflation rate, external reserves of about $63 billion, and the Naira appreciating steadily against the major currencies.

This is a consequence of our policies aimed at maintaining relative stability and predictability in Nigeria's macro-economic environment."

This was the high point of President Umaru Musa Yar'Adua's Independence Day broadcast to the nation as it relates to the economy. The indices highlighted by the President are very critical to the growth of any economy. But some Nigerians have said that the strong economy probably exist in the books of the government alone as it is not reflected in the economic welfare of the people.

Some have even argued that it is simply miraculous for the economy to be growing at almost seven percent and inflation rate in single digit when the key determinants of an economic growth are not in place.

State of Infrastructure

The country state of infrastructure is an apology, the roads are simply in deplorable state, and electricity supply which is taken for granted in most countries is not just there. Some $16 billion was said to have been invested in the sector by the Obasanjo's administration with the situation getting from bad to worse. Unemployment rate is at ease heading upwards even as companies that could not cope with the harsh operating environment are closing shops.

Crippling power crisis, failed basic infrastructure and rising cost of refined petroleum products are of serious concern in the Nigerian manufacturing sector. These are said to have driven down capacity utilisation in the sector to about 38 per cent. All of these, Jide Mike, director general, Manufacturers Association of Nigeria, recently wrote have added to place the Nigerian manufacturer at serious competitive disadvantage position in the global market place leading to huge dumping of goods from countries with lower production cost.

There has been a report that many manufacturing industries have closed their production lines while not a few others have had to relocate to smaller African countries with better infrastructure and stable power supply. Even Nigerian entrepreneurs are also relocating their industrial concerns to these other African countries while they maintain liaison office in Lagos or Abuja. Michellin, a household name in tyre manufacturing in Nigeria had since closed shop and thousands of Nigerians laid off.

Dunlop Nigerian Plc, the only surviving tyre manufacturer, on August 23, 2008, laid off over 300 workers in the wake of its recent downsizing of operation. According to the company's public relations manager, Abiona Babarinde, the affected workers did not lose their jobs on grounds of incompetence or any other factor but due to the present circumstances of the company.

Dunlop's problems are traceable to two critical issues: power and tariff. The company spends an average of N150 million every month to generate its own power and in the light of the high cost of diesel at N150 - N160 per litre, producing at a competitive price had become difficult.

In addition, the epileptic supply of gas, price of which was hiked by 300 per cent recently had worsened the company's energy problem. The power problem had greater effect on the production of radial tyres being a heavy power consumer. And for most manufacturers, electricity from the Power Holding Company of Nigeria (PHCN) serves as back up.

The company's second major problem has to do with tariff. According to the public relations manager, before the company went into radial tyre production, tariff on imported truck tyres was 40 per cent. But at the time the company was entering the market with its truck tyres from its new N8 billion radial tyre plant, government reduced the tariff to just 10 per cent, making the locally produced tyre uncompetitive.

Available statistics have that Nigerians spend about N16.408 Trillion or $140 billion to fuel generator annually. Broken into sectoral details, the Telecom sector spends N6.7 Trillion per annum to purchase diesel; Filling stations spend N43.98 billion; Factories spend N43.98 billion; the banking sector spends N11.7 billion; Insurance companies spend N80 billion; Residential households spend N7.812 trillion and; commercial enterprises, N1.57 trillion.

This it is said amounts to 300,000,000 litres of petrol per day. These are funds that would have been deployed for better use in other vital sectors of the economy to create jobs and improve the standard of life of Nigerians.

However, the President appears to be aware of these ugly developments plaguing the economy and he acknowledged this in his speech. "We are aware that our physical infrastructure deficit cannot sustain the level of economic development which we envision for Nigeria. This brings to the fore the imperative to rapidly rebuild, maintain, upgrade, and expand our critical infrastructure. In our quest for practical solutions to our endemic energy problems, we have set in motion far-reaching reforms which have started to yield some positive results," he said.

How soon Nigerians will start to see and enjoy these "positive results" from the energy sector as stated by the President is left to be seen. The Nigeria Labour Congress (NLC), however believes that if the country must make progress economically, then President Yar'Adua must adopt a more decisive approach to governance. In a statement issued by NLC President, Abdulwaheed Omar, during the Independence Day celebration, the labour union noted that for a country that aspires to be amongst one of the 20 leading economies in the world, there must be dynamism in the leadership style of the administration.

"Organised Labour shares the frustrations of a majority of Nigerians over the patent lack of progress in virtually all aspects of Nigerian life, relative to the outstanding accomplishments of other countries, with which we started the journey towards nationhood. Those other nations have accomplished remarkable feats in governance based on sound ethics, first class technological and industrial development, excellent infrastructures and high standards of living. To explain the Nigerian backwardness, we must again engage the vexing issue of poor leadership," the statement read.

But President Yar'Adua believes his hands are on the plough and he is sure to take the country to its expected destination. "We have evolved a holistic strategy for the development and rehabilitation of the nation's transport system. We intend to concession the most economically viable roads across the country, while aggressively pursuing a road sector development and maintenance programme estimated to cover 5,700 kilometres.

"With the railways, we plan to concession some existing routes including the Western and Eastern rail lines as well as the uncompleted central line, while rehabilitating and expanding the existing rail system. Notably, the Infrastructure Concession Regulatory Commission, ICRC, is expected to commence work shortly," he stated.

In the Agricultural sector, he said, the government is resolutely pursuing a policy of sustained support for small-scale farmers, and structured development of medium and large-scale agriculture. "We intend to utilize the National Resources Development Account to boost domestic production of food crops and development of agro-allied industries. Our goal is assured food security," he noted.

The President also stated his administration's determination to ensure security of lives and properties and this, he noted informed the seriousness with which the government intends to implement the recommendations of the Police Reform Committee aimed at enabling the "Nigeria Police effectively and efficiently meet their constitutional mandate of ensuring public safety and security, as well as the enforcement of law and order in every part of this country."

Reforms in Government

President Yar'Adua also revealed that his government commitment to the entrenchment of transparency and accountability in the conduct of government business had remained unwavering. He noted that in practical demonstration of the administration's efforts to sanitise the financial and budgetary processes, "we have realised over N400 billion from unspent capital releases to Ministries, Departments, and Agencies, MDAs."

This should be some credit to the administration's commitment to transparency and accountability in the conduct of government business except that much of the money retrieved from the MDAs was probably given to them late in the year and so could not really utilize them before the advent of another budget. For instance, eight or so months into the 2008 financial year no capital vote was release to the MDAs because of the controversy that trailed the passage of the budget. And with another one already in the offing, it would only be logical for the MDAs to return their capital votes to the Presidency for appropriation in the 2009 budget. This could hardly be described as victory for the government commitment to transparency and accountability in the conduct of government business.

Vision 2020

Be that as it may, the government appears committed towards that Nigeria sits on the table of the 20 most industrialized nations in the world by 2020. To ensure the realisation of Vision 2020 targets, the Federal Government recently announced a three-phase implementation strategy beginning from next year, 2009.

According to a statement signed in Abuja at the end of an inter-ministerial technical committee, which met in Kaduna to develop the plan, the implementation is to be done under three distinct categories, namely: Rebuilding, Transformation and World Class Service.

The statement signed by Dr. Anthonia Ekpa, a deputy director and head of Communications Department of Bureau for Public Service Reforms (BPSR), the agency charged with the responsibility of co-ordinating the implementation said the implementation blue-print has been endorsed by the Federal Government and is spelt out as follows: Rebuilding (2009-2011); Transformation (2011-2015) and World Class Service (2015-2020) blueprint.

She added that the initiative was part of the Federal Government's commitment to a reformed public service in the country as a sure way of attaining national growth and development.

According to the statement, by the former Secretary to the Government of the Federation (SGF), Baba Gana Kingibe, who was then represented by the Permanent Secretary, Dr. Mrs. Safiya Mohammed, he noted that the surest way to guarantee the attainment of national growth is to reform its public service.

Kingibe said in the statement that to ensure adequate support for the nation's political class and to the success of the nation's Vision 2020 project and the seven-point agenda of the Yar'Adua's administration, government would accord due priority to the reform programme. "It is a fact that the growth of any nation is reliant on a virile, focused and responsible public service. BPSR is established primarily to oversee, manage and propel the needed changes in the way the public services the public.

"No reform of any aspect of government will make any meaning with a stagnated public service. The manner in which all stakeholders have demonstrated their interest in reforming the service is a clear testimony of the acceptance of the policy," he concluded.

Ama Pepple, who was represented by her Permanent Secretary, Alhaji Bello Ozigis, also spoke of the need to urgently reform the public service. According to her, "There is an urgent need for the public service to renew itself and adapt to change in order to continue to competently serve as the driver of all our national development initiatives in line with the political leadership. That is the only way that the public service could earn respect and commendation of the people."

The administration of Chief Olusegun Obasanjo, Nigerian former president, came with the vision 2020 project, which is intended to position the country among the top 20 most industrialized countries in the world by the year 2020. For now, every effort is being made to ensure the realisation of the vision. President Yar'Adua pledged his administration's commitment to ensure that the dream is realised immediately he was sworn in as Nigeria's leader.

As part of his strategies to realize this goal, he said his administration would intensify the implementation of supportive policies to boost Small and Medium Enterprises (SMEs); further reduce interest rates; reduce the nation's poverty and unemployment levels; and sustain the country's economic growth rate. Apart from that, he said, his administration would strive to sustain a double digit gross domestic product, GDP, annual growth rate. He emphasised that all business transactions would be done with strict adherence to the rule of law and zero tolerance for corruption.

Yar'Adua acknowledged that without the private sectors support the seven-point agenda of his administration will not be achieved. "I recognize that the level of growth and development which we have committed this administration to achieving is not realizable without the firm support and productive partnership of the organized private sector. This informs our keenness in re-energizing the existing partnership with the private sector and genuine investors who are willing not only to exploit the enormous investment opportunities, which abound in Nigeria but also to drive the growth of our economy.

"Rebuilding our national economy crucially demands rebuilding and expanding our critical infrastructure and evolving sound policies that will clear the path to optimal socio-economic development. We have commenced tackling the challenges in the energy, transportation, human capital, and security sectors in a structured manner in order to make enterprise flourish in the country", he said.

The President assured that his administration will continue to pursue the inflow of Foreign Direct Investment (FDI) to support rapid economic growth and also aggressively promoting Domestic Private Investment (DPI) in order to have in place a robust home-grown growth strategy. "Government is constantly strengthening the Nigerian Investment Promotion Commission (NIPC) and adopting pro-business and investment-friendly policies in order to create an environment conducive for business prosperity. Conscious effort is being made to evolve reforms targeted at reducing the cost of doing business in Nigeria.

"The Nigerian Investment Promotion Council, NIPC's, One-Stop-Investment-Centre (OSIC) has been empowered to provide fast-track business entry services to both domestic and foreign investors, devoid of red tape. In addition to the 13 government ministries and agencies currently represented at the Centre, additional regulatory agencies with investment facilitation roles would be brought into the facility to ensure full sectoral coverage and further ensure that investors' pre-investment approvals and authorizations are met proactively, rapidly, efficiently and transparently. We are reviewing the existing incentives regime towards developing sector-specific national policies on investment. This is with a view to articulating a generic policy and incentive package that will ensure policy consistency, predictability and a level-playing field for all investors.

"The private sector is being encouraged to raise the quality of investment and expand into higher value-added activities and to benchmark against international standards and practices in order to raise Nigeria's productivity and global competitiveness. We will further intensify the implementation of supportive policies to boost Small and Medium Enterprises (SMEs); further reduce interest rates; reduce the nation's poverty and unemployment levels; and sustain the country's economic growth rate. Our vision is for a sustained double digit GDP annual growth rate," he said.

The President also assured multinational companies operating in Nigeria of his administration's support, particularly as it has to do with strengthening domestic linkages, and the establishment of strategic alliances and partnerships with domestic investors and Small and Medium Enterprises. "We expect the banking sector to play a more visible role in supporting the growth of the real sectors and promoting a vibrant capital venture industry.

The small and medium enterprises are expected to benefit from the increasing local and global needs for outsourcing to expand market access both in Nigeria, within the West African region, and internationally. "Our privatization policy emphasizes strengthening the role of the private sector in our economic development initiatives to enable government concentrate on its role as enabler, promoter and facilitator of business," the President said.

President Yar'Adua used the opportunity of the meeting to tell the investors that were gathered of the numerous investment opportunities that abound in Nigeria. He made it known that return on investment in the country ranks among the highest globally. "Your respective enterprises are vital to our nation's economic development. We therefore earnestly await and warmly welcome your plans for expansion, investment initiatives, and your renewed pledge to remain active business partners with our administration. It is high time Nigeria took its rightful place among the world's elite nations. Time is of the essence", he said.

Scepticism and Wayout

But Dr. (Mrs.) Joe Okei-Odumakin, President, Campaign for Democracy (CD), is not very convinced the current crop of leadership in the country is on the right track yet not to talk of achieving some targets in year 2020. "Have the authors of Vision 2020 checked out the statistics of the current 20 most developed economies that they want us to displace in the next 12 years. How many of such countries belong to OPEC and yet import fuel for their domestic consumption?

"Where among those 20 nations are there tales of "unspent funds" being shared at the end of the fiscal year? Which among the 20 most developed countries get to the end of September and has yet to pass the appropriation bill for the year? Where among them do you have factories and warehouses being converted to worship places in droves? Pray, where among them is it that the super thieves determine who heads the agency that is meant to be prosecuting them?" she queried in her write up last week in the dailies.

Okei-Odumakin said it is funny how leader set targets in this country and think that the calendar would stop functioning till that time. "We had all the lofty goals for the year 2000, yet the year came and we did not achieve anything. There was vision 2010 which lapses in two years time. It is now 2020 as if twelve years would be eternity. It would be pure waste of time hoping that the present ruling elites in Nigeria can pioneer National redemption and development. That would amount to waiting for a marble status shedding tears," she stated.

Instructively, she noted, Nigerian leaders do not have a shortage of good examples from whom to borrow. She added that Singapore and other Asian tigers, with which Nigeria was ranked pari-passu in the 1960s, have long since left the country behind. She however said that those countries provide abiding lessons in how Nigerian leaders should roll up their sleeves and get on with the urgent assignment of reinventing the country in a manner that gives real significance to the independence which the country attained 48 years ago today.

Okei-Odumakin is however optimistic that things can still change for the better for the country. "We can change our story if we take our destiny in our own hands. Nobody will do it for us. The time has come for us to revive the spirit that made our ancestors to tell the British that enough was okay.

"We must re-invent the struggle that told the military the barrack is their place. Let us launch a fresh initiative to build a network for change so that by the time we are celebrating 50, we would have a new song. If we failed to act now and fast track our change, by the time we are 60 and when vision 2020 would have become another mirage, we would still be asking: which way Nigeria?" she submitted.