BY OUR REPORTERS
LAGOS — Mixed reactions have trailed President Goodluck Jonathan’s assessment of his administration in which he said he has done well. Many operators in the private sector dismissed the pass mark which the President awarded to himself, saying that available field experiences and data do not bear him out completely.

Others agreed, however, that there are some level of improvement. But all have agreed that the welfare of Nigerians has not improved as unemployment is rising by the day.

Director-General, Lagos Chamber of Commerce and Industry, Muda Yussuf said: “Economic growth trend, measured by the performance of the Gross Domestic Product (GDP), has been generally positive over the last two years, averaging about 6.5 per cent. This is good compared to growth conditions in most economies around the world. However, there remains a major concern about the weak impact of the growth performance on private sector and the welfare of the Nigerian people.

“Virtually all business segments lamented the harsh operating environment in recent years. The power situation deteriorated as we now have a relapse into a chronic power failure. The refineries are still underperforming; unemployment level is still high and cost of fund is high.

“Sectors that posted good growth performances as at December 2012 were telecommunications, 31.8 per cent; Hotel and Restaurants, 12.2 per cent; Solid Minerals, 12.5 per cent; Building and Construction, 12.6 per cent; Real Estate 12.4 per cent; and Wholesale and Retail Trade, 9.6 per cent. However, the contributions of most of the sectors to GDP are not significant.

Respective contributions are as follows: telecommunications, 7 per cent; Solid Minerals, 0.4 per cent; Hotel and Tourism, 0.6 per cent; Building and Construction, 2.2 per cent; Real Estate, 1.9 per cent. The character of growth explains the limited impact of growth performance on welfare of citizens. Local value addition and indigenous participation in many of the sectors is still very low”. He agreed that “Nigeria had become a major portfolio investment destination in Africa because investors are more comfortable in a democratic environment,”.

PRESIDENT GOODLUCK JONATHAN PRESENTING HIS ADMINISTRATIONS MID-TERM REPORT AT THE 2013 DEMOCRACY DAY CELEBRATION IN ABUJA ON WEDNESDAY (29/5/13). STATE HOUSE PHOTO

He, however, said that there was huge disparity between the nation’s economic growth and the living standard of Nigerians. “International Monetary Fund ranked Nigeria number 36 in the world on account of GDP estimated at 273 billion dollars in 2012. United Nations Development Programme, ranked the nation number 157 on account of human development index in the same year,” he said. Yusuf said that the dividends of democracy could be evident in the business sector if government had intervened in the challenges confronting the sector. Many small and medium-scale enterprises still have serious challenge in accessing credit even at high rates. The power situation, which improved slightly towards the end of 2012, has since deteriorated. This development led to increase in expenditure on diesel and petrol and a resulting decline in productivity and competitiveness,” he said. Yussuf appealed to government to bring a lasting solution to security issues in order to boost the confidence of investors.

Capital market operators slam corruption

Capital market operators agreed that the Goodluck Jonathan’s administration has indeed enacted some policies that have favourably impacted not just the capital market, but the entire financial system. They however, said that more still needed to be done on the area of corruption, which they said is systemic.

Reacting to the President’s mid-term assessment, Mr. Emeka Madubuike, Chairman, Association of Stockbroking Houses of Nigeria, ASHON, and the Managing Director, Compass Investment Limited, said: “Though there are still some unresolved issues, like the issue of corruption, but looking at the numbers coming out of the financial system, one cannot but say that the Jonathan administration has done quite a lot in stabilising the system. The financial system I know about is the capital market and it is doing well. You can only attribute this to the fact that some people are doing well. There must have been some policies put in place by this government to warrant the kind of stability we are witnessing in the financial circle. We cannot run away from that.”

According to him, the constitution of the Asset Management Corporation of Nigeria, AMCON, and its various roles in ridding the banking sector and capital market of toxic assets cannot be wished away. He affirmed that this along with the reforms in the banking system initiated by the governor of Central Bank, Mallam Sanusi Lamido, was an attestation of the good work Jonathan has done in economic circles.

“Look at the formation of AMCON, the cleansing in the banking sector and even the GDP. All these show that somebody somewhere is doing a good work,” he aded.

Speaking in the same vein, Alhaji Rasheed Yussuff, Managing Director, Trust Yield Securities Limited, said that the resolution of the margin loan facility debacle, and conclusion of reforms in the banking sector have helped in stabilising the entire financial system, adding, “to that extent, he has helped the capital market to come out of doldrums.

“Talking about the macro-economic environment, some Ministers appointed by Jonathan are really doing well. Talk of the Minister of Finance, Minister of Agriculture, Minister of Industry, Trade & Investment, and the Central Bank Governor. These four people are managing the macro-economy well. Kudos should be given to them,” he added. Nonetheless, he stated that some of the achievements by these ministers were yet to be felt by the common man, saying that more should be done in this regard.

He also noted that three active ministers out of about 40 ministers does not tell well of the administration, saying that they should be prodded to add their quota to the economy.

On corruption, Yussuf said that government should as much as possible allow private sector to participate in some developmental projects, stressing that concentration of too much power in individuals should be discontinued in the interest of the nation.

“When a lot of power is vested in an individual, if he has an opportunity of doing anything, perhaps awarding contract, he will favour people that are immediately close to him,” he stated. Also speaking, Mr Victor Ogiemwonyi, Managing Director, Partnership Investment Plc, said that the administration is on course in terms of policy, but still needs to do more in the area of ‘soft issues.’

Economy yet to impact Nigerians — Stakeholders

An economist, Mr Remi Alarape, Managing Director, Remmy Associates Ltd, in his reaction advised the Federal Government to intensify efforts to make Nigerians feel the impact of government. Alarape said this in Lagos in reaction to President Goodluck Jonathan’s Mid-Term Assessment Report. He said that the Federal Government had to increase its impact on the standard of living of Nigerians. “Most Nigerians do not have information on what the regime is doing to improve the economy,“ he said. Alarape lamented that the productive sector had been inactive due to the absence of enabling environment. “The lending rate to real sector is still high which had made it difficult for government to meet its projected gross domestic product. Our unemployment rate has been on the increase and the oil sector is not being expanded to employ more hands, “ he said. Alarape urged the government to take more proactive steps to diversify the economy, generate employment opportunities and reduce the nation’s poverty rate.

Dr. Jona Ezikpe, former Managing Director Manny Bank, now Chairman Chief Executive NEMACO farms believes the government is in the process of transforming the agricultural sector for good.

National Publicity Secretary, Nigeria Shareholders Solidarity Association, Alhaji Gbadebo Olatokunbo said: “To be candid, l have read and heard a lot on the policies/achievements of the Federal Government on stable-macro economic indices, Agriculture etc. But frankly, they’ve not reflected on the citizen’s welfare and if they do not, then how do we gauge government achievements? Meaning nothing has been achieved. May be, we should give them more time, because many bad things are happening around us now; that are giving both Corporate organisations and the citizenry sleepless nights. We need to be very-careful now.”

Mr Oderinde Taiwo, National Coordinator, Proactive Shareholders Association of Nigeria (PROSAN) said the President has done his best for the economy and there are lots yet to be done. On the Capital market, he said, the presidency needs to broker peace between the National Assembly and the Security and Exchange Commission to end the zero allocation to the body which is not good for the market.

Afenifere disagrees with Jonathan on mid term assessment