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Nigeria Needs A National Strategy To Integrate Factor Endowment Into A Plan - Prof. Utomi

Nigeria Economy	1435 VIEWS
Nigeria Economy
1435 VIEWS

Tuesday, April 28, 2020 / 4:06 PM / Bukola Akinyele for WebTV / Header Image Credit: The Whistler NG

Founder, Centre for Values and Leadership (CVL), Professor Patrick Utomi was of the view that the ongoing COVID-19 crises was an opportunity for Nigeria to reset its development plan and strategies with a view to attaining measurable developmental milestones. Speaking on WebTV's breakfast Coronanomics program, the political economist noted that pandemics in the course of human history have always provided opportunities for fresh beginnings.

Utomi stated that COVID-19 offered Nigeria an opportunity to adopt a national cohesive development plan and drive a policy that leverages on its factor endowment to emerge as a globally competitive economy.

Speaking on the lockdown experience, Utomi said that Pandemics have shaped human history in many ways including redesigning the production contours of several economies. The lockdown, according to Utomi, will bring about a shift in how people work and will accelerate the adoption of 4^th industrial revolution (4IR) technology such as Artificial Intelligence.

In reviewing fiscal measures during the lockdown period he said, the need for intervention fiscal measures was something Nigeria should have anticipated which represents the tragedy of the delayed response of leadership. Nigeria has recently experienced Ebola and Lassa fever amongst other health epidemics which should have reminded us that epidemics (and perhaps pandemics) are always lurking. He said, at a global level it is incredible to realise that Nigeria failed to recognise the importance of healthcare sector as a pivotal part of collective socioeconomic existence.

According to Utomi, most modern development and human progress has been denominated by two factors; namely, education and healthcare. Nigeria's healthcare sector, according to the academic, is a management disaster and a national tragedy.

He was of the view that, the majority of the population would find it difficult to survive a season like this and there was need for planning to take care of the vulnerable in society. He noted that the planning has not been the best and could lead to social combustion.

He said, an economist, Zaheel Zakriya predicted that the pandemic will likely lead to revolution in some countries like Nigeria. Prof Utomi was of the view that the government needs a proper system of sensitizing people about the disease and the programmes of government to contain and overcome the health and economic consequences of the malaise.

According to Utomi, there are 100million people in the country living below the extreme poverty line. He made a proposal that Nigeria could find the money to redress the COVID-19 problem by shutting down the National Assembly (NASS) for one year, cut the executive branch expenditure by 60% and take the resources they consume and keep the poor at home for 2-3months. He advocated that the Nigerian government take more drastic measures in respect of palliatives for the weakest and poorest members of society.

Prof. Utomi highlighted the following as the challenges the country faced currently:

The shock of lockdown
The shock of collapsed Oil prices
The shock of unfavourable investment which means the Nigeria economy was stuck in an investment rut. He said Nigeria needs to rethink its economy in order to move forward

The professor noted five top areas that needed attention at the present time:

Nigeria needs a clear and cohesive national strategy to integrate our factor endowment to become globally competitive
Nigeria needs a carefully crafted Industrialisation Policy
Nigeria needs to identify value chains with clear timelines and goals to achieve stated objectives
Nigeria needs to create a new financial system different from the current banking system or perhaps create a new commercial development bank.
Nigeria needs entrepreneurial financing; banks need to be developmental in orientation to support the growth of the economy

On lockdown management, Utomi observed that social distancing was still very important because the coronavirus could be around for six months until a vaccine is developed. He said, Nigeria need to move to a point of multiple strategies. He said the present situation needed to be managed asymmetrically and creatively to ensure that the economy does not collapse in the face of the pandemic.

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