Why We Took Some Of Our Policy Decisions —– VP Osinbajo Clears Air

In an effort to woo investors for the country, the Vice President, Prof. Yemi Osinbajo, SAN, has presented an in-depth analysis of some Government policies to investors at the 7th Annual Pan-Africa 1:1 Investor Conference, which was organized by Renaissance Capital.

The event took place at the Intercontinental Hotel, Victoria Island, on Wednesday, April 11, 2016.

In a statement by Laolu Akande, Senior Special Assistant-Media & Publicity in the Office of the Vice President, Osinbajo started his presentation by setting the stage for why Government was taking some of the policy decisions that were being taken and why the particular policy options.
He also explained why Government thinks such decisions were the best in such circumstances, as well as good for investors.

Analyzing the economic indices, he said GDP had fallen, and that household consumption had increased despite GDP figures. He said manufacturing growth slowed down because of drastic fall in Foreign Exchange Earnings. There is a slow decline in Capital Importation as well as foreign Exchange as a result of decline in Crude Oil prices.

The Vice President, referring to the peculiarity of the Nigerian situation said, in the short run Government will continue to stimulate household consumption, address problem of fuel shortages, food scarcity and inflation as well as Foreign Exchange. Some of the actions around these include the feeding of 5.5million children which will increase the nutritional value of the children and will consequently affect the agricultural value chain and the entire supply chain all the way.

Continuing he said, ”public works program for rural roads that will connect roads to the markets and consumers as well as affordable housing program are also part of the decisions.

He said these will create employment for some people. Talking about Agriculture and food security, he said Government intends to achieve self sufficiency in rice production, wheat and tomatoes, by collaborating with some States like Kebbi State for instance. Also he talked about the implementation of deregulation of fuel. According to him, to increase foreign exchange earnings, the Central Bank will pursue re-evaluation of the Forex.

Assuring the investors, Prof. Osinbajo said Boko Haram has been largely contained and Government will continue to invest in security. ”Government is working hard on controlling public expenditure and the efficiency unit of the Federal Ministry of Finance will play a big role. TSA has helped greatly to give the operators of the public finance system a good view of all Government’s receipts and revenue and has therefore helped in managing public finance,” Osinbajo said.

The Vice President said key intervention in capital projects, is investment in infrastructure. ”For the first time, 30% of the budget will be spent on capital projects and will be mainly on power, works, housing and transportation which includes about four rail projects,” he said.

The number two citizen assured investors that the N6 trillion budget will stimulate the economy. He said foreign exchange challenges will not only be tackled by demand management but also the issue of supply will be tackled as well. He further assured that regulatory and fiscal issues in the PIB will be addressed to encourage investment in the sector.

According the Vice President, there will be a dedicated security force that will engage more of technology in addressing the Niger/Delta issue. He said Government will ensure that the banking system survives.