President’s New Economic Team

THE inclusion of members of the organised private sector is the main difference in the President’s Economic Management Team. The private sector sees the decision as an indication that the President wants to address the economy, a promise he made, among others, during his inauguration last May.

Alhaji Aliko Dangote, President of the Dangote Group, Forbes-rated as one of the richest men in Africa, is in the team. Rated as the single largest indigenous private sector employer with close to 20,000 workers, his membership of the team might have been informed by two factors – his dominant role as an employer and the fact that he heads a federal government committee that has been deliberating on job creation from various sectors of the economy.

The work of the committee, which pooled information on industries and sectors that have high potentials of generating jobs that can create multiplier effects across the economy, appeared to have been slowed down while awaiting the constitution of the new cabinet.  It made serious recommendations on the impact that entertainment, sports and leather production would make on the economy if they are considered as vital investment areas.

Job creation is an essential component of any meaningful economic development and therefore his inclusion along with others will give direction to the team. Government has battled over the years with creating jobs, especially for a teeming youthful population that could become more restless.

Leader of the team and Minister of Finance Dr Ngozi Okonjo-Iweala, perhaps speaking for the President, has said that job creation would be a priority. Past governments have made similar promises without fulfilling them. The task of the team would be rated mostly on how well it keeps the economy running and creating jobs instead of losing them as has been the case with banking and manufacturing.

Other private sector members of the team are the President of Manufacturers Association of Nigeria, MAN, and a former Minister of Industries, Chief Kola Jamodu. Without a strong manufacturing base, the economy will not create the high number of jobs an increasing population requires. MAN’s demands to lessen the burden of manufacturing can get more attention with its head in the economic team.

The role of banks in the economy remains contentious. Businesses are not getting enough support from banks. Policy instability contributes to this as the banks react to government’s decisions. Mr Atedo Peterside and Aigboje Imoukhuede, both bankers, would press for these concerns to be addressed.

Calls have since ensued for the inclusion of more people in the team. Where are the private sector people representing agriculture or transportation? If we are to follow that path, the team will be larger than the parliament. What the economic team needs to do is to gather information and ideas from all sectors, to offset poor representation of some sectors. An economic team cannot draw membership from all sectors.

No economic team will achieve much without the political will of the President to make important decisions for the common good. The task before the team is how to manage Nigeria’s dwindling resources in a depressing global economy to achieve the most profound results for the development of the country.

It is a daunting assignment which even with the most dedicated attention will take some time for the results to be noticed. This is not an excuse for failure or not finding those niches that can produce some quick and appreciable remedies for an ailing economy.