“Fiscal federalism would help diversify Nigeria’s economy”

Fiscal federalism has been identified as a catalyst that would help diversify the Nigerian economy, which is presently heavily dependent on crude oil.

Managing Director, Stellarchem Nigeria Limited and Chairman, Toiletries & Cosmetics (T&C) Group, Manufacturers Association of Nigeria (MAN), Mr Ikpong Umoh, made this assertion in Lagos on Thursday at the 2016 Commerce and Industry Correspondents Association of Nigeria (CICAN) Summit/Award Ceremony with the theme: “Diversifying the Nigerian economy through the industrial sector”.

He noted that if states were in charge of electricity generation, it would be easier to meet about 150MW of electricity need of the country, which would in turn cut the operating cost of manufacturers in the country and make the players there globally competitive.

The Stellarchem Nigeria Limited boss noted that industries need stable power supply to thrive and this would be achieved if each state is allowed to generate its electricity.

Umoh added that as part of the diversification drive of the country, states should manage the country’s seaports, which he said would promote efficiency and competiveness.

“If we are serious about the diversification of the economy through industry, states should also be allowed to control the seaports,” he stated.

According to him, over 90 per cent of the cargoes coming into the country are through the Lagos port, which has been hampering businesses in the country.

He also argued that there were a lot of bottlenecks in the present efforts to diversify the country’s economy through agriculture.

Umoh mentioned the fact that land ownership is still a major challenge for those who intend to invest in agriculture in Nigeria. “It is still very difficult to get Certificate of Occupancy (CofO),” he claimed.

The MAN T&C Group chairman stressed that need to add value to agricultural produce in the country, saying the export of crude oil without value addition was made the Nigeria economy to be in recession currently.

“Agriculture should help us attain food security in the short term and feed our industries with materials in the long run,” he posited.

Meanwhile, the Minister for Trade and Investment, Dr Okechukwu Enelamah who was represented at the event by the acting Managing Director, Bank of Industry (BOI), Mr Waheed Olagunju reiterated the importance of proper education to the development of the country.

He also called on the media to help sensitize Nigerians on areas where the country has comparative advantages, saying investments in these areas would help grow the economy.

He charged journalists to engage in developmental journalism and help educate small business owners on how they could improve their businesses.

The President of MAN, Dr Frank Jacobs who chaired the event disclosed that manufacturers have not actually benefited from the 60 per cent forex that was said to have allocated to them.

He also revealed that scarcity of forex has forced 22 members of MAN have completely closed operations and over 50, 000 workers have laid off this year.