…Says Jonathan needs inclusive growth to
tackle poverty, create jobs …
Ndubisi Ifeanyi Nwokoma is Professor of
Economics and Head of the Department
of Economics, University of Lagos. He is a
Fellow, Chartered Institute of
Stockbrokers. Until recently, he worked at
the United Nations Economic Commission
for Africa, Addis Ababa , Ethiopia, as Chief
of Financing, Industry and Investment in
the Economic Development and NEPAD
Division on a Leave of Absence from the
University between 2010 and 2012. He
also worked with Nigerian Stock
Exchange, Lagos as the Special Assistant
to the Director General/Chief Executive
Officer.
He has a PhD Economics degree from
University of Ibadan, with specialisation in
macro econometric modeling and policy
analysis. He participated actively in the
construction and maintenance of
econometric models for the Federal
Government under the auspices of the
Center for Econometric and Allied
Research, CEAR, University of Ibadan. He
speaks on the need for President
Goodluck Jonathan to adopt the
techniques of inclusive growth to enhance
rapid economic transformation and
sustainable development. Excerpt:
The Federal Government has said that the
economy is growing at 7 per cent. As an
economic expert, will you say Nigeria is
doing well in the second quarter of 2013,
considering that the rate of poverty
currently stands at 70 per cent?
I will say yes and no. First, let me start
with yes. The indicators at the macro
level shows that government is doing well
in some areas. For instance, in term of
foreign reserve, the government is
recording positive increase because we
have a good foreign reserve, which is
needed to cushion our transactions with
the world. Currently, Nigerian foreign
reserve is estimated at the monetary
value of about N$40billion. This reserve
helps to provide a cushion for the
country's international trade and other
transactions. Aside from a robust foreign
reserve, the growth rate of the economy
stands at about seven percent, which is
quite high and among the fastest growing
in the world.
Nigeria also has a robust banking sector
that has been cleaned up through various
reforms to sustain the real sector of the
economy by giving loans to the
entrepreneurs. At present, Nigeria 's
foreign debt is at a manageable level
because the country is not heavily
indebted with foreign loans. When talking
about foreign debt relief, we must
acknowledge the effort of the Finance
Minister, Dr. Ngozi Okonjo-Iweala, who
worked hard for the debt relief, years
ago.
The Telecommunication sector is doing
relatively well and it is among the fastest
growing in the world. This has paved the
way for e-payments and electronic
transactions across the country, which is
quite good for our economy. For
example, the cashless policy of the
Central Bank of Nigeria (CBN) is thriving
in some states of the Federation due to
improved telecommunication services in
the country. Also, there is positive
outlook in the oil and gas sector of the
economy, which is our major source of
revenue at the moment. So, these are
the areas I can say yes the economy is
doing relatively well.
Now, coming to the side of no. I said no,
because there are a lot of issues to be
addressed in terms of growth at the micro
level. For instance, the high rate of
economic growth at about seven percent
has not helped to reduce the rising rate
of unemployment in the country, at least,
not as expected. What we have now is
like a jobless economic growth situation.
The poverty rate is also very high.
Unemployment in the country is at the
crisis level already. We are currently
facing challenges of poor infrastructure as
well as an unending crisis in the power
sector, which has affected the entire
economy with the multiplier effect seen
in virtually every sector of the economy.
What I am saying in essence is that, the
existence of high growth rate, high
unemployment and high poverty rate is a
kind of paradox in the economy. At the
macro level we are doing well but down
the lane, we are not doing well because
the growth rate has not reflected in
reducing the high rate of poverty and
unemployment in the economy.
You participated actively in the
construction and maintenance of
econometric models for the Federal
Government under the auspices of the
Center for Econometric and Allied
Research CEAR, University of Ibadan .
What will you advise government to do in
tackling these persistent challenges in the
economy?
The solution is quite simple. We need
inclusive growth in order to create jobs
for the citizens. Now government is
saying we have low and stable inflation
rate. But the issue is, if we have low rate
of inflation and high level of
unemployment, it is a big problem.
Corruption is another major problem that
government must tackle for the economy
to thrive and achieve the desired results.
This also implies that government must
ensure zero tolerance to corruption and
government officials should live by
example, such that individuals found
guilty of corrupt practices must be made
to face the full wrath of the law.
Can you give more insight into what you
mean by inclusive growth?
Inclusive growth is one in which growth
benefits all economic agents. The growth
we have in Nigeria now is not inclusive
because it does not reach people at the
grass-root. Government should use
income from oil to assist the people in
their productive activities to generate
more growth. Else, we will just be fighting
for allocation of revenue. For us to
achieve inclusive growth, it means the
people must be directly involved in
various economic activities and the actual
production process in order to generate
wealth. This implies that the policies and
programmes of government must be
people-oriented and should revolve
around the people. That is why I called it
inclusive. The term inclusive means all
sectors of the economy and people must
work in synergy to optimise outputs for
greater productivity.
What is the difference between inclusive
growth and development?
Growth is an aspect of development,
which is about increase in the size of the
economy, while inclusive development is
a wider concept. Development has to do
with improved living standard of the
people, the efficiency in social services,
the state of infrastructure and provision
of social amenities in the country, life
expectancy rate, the education system
and health condition of the people
among many other services.
Government must give attention to the
growth of Small and Medium Enterprises
(SMEs), as this sub-sector is also capable
of creating jobs. This implies that
electricity must be constant for small
scale businesses to spring up in various
places across the country.
Is China , Nigeria bilateral business
agreements a step in the right direction?
Well, China is the second largest economy
in the world. The Chinese investors are
everywhere in the International business
arena. China has interest not only in
Nigeria but in Africa generally. For
example, the African Union building in
Addis Ababa , Ethiopia was donated by
China . So, you can see the interest and
connectivity. My advice is for the Nigerian
government to exhibit strong bargaining
power to reposition our economy for
greater prosperity. We must ensure a
win-win situation because there is no free
lunch anywhere. The Chinese investors
are here because they have their own
interest. So, we must protect our
economy as well. For instance, we need
investment in cassava and other areas.
So, the Chinese investors can be of great
benefit in these aspects.
His background
After completing his B.Sc Economics
degree programme in 1980, with a
second class upper honours division,
emerging among the top three in the
graduating class of over 100 students, he
was invited back, as a university scholar to
undertake his M.Sc. and PhD Economics
programmes, which he completed in
record time, in 1982 and 1984
respectively. In the course of his
programme at the University of Ibadan ,
he participated actively in the
construction and maintenance of
econometric models for the Federal
Government of Nigeria under the auspices
of the Center for Econometric and Allied
Research CEAR of the University of
Ibadan .
Prof. Nwokoma also qualified
professionally as a capital market
operator, obtaining the associateship of
the Chartered Institute of Stockbrokers of
Nigeria as well as the licensed dealership
of the Nigerian Stock Exchange in 2002.
He was elected Fellow of the Institute in
2012. The professional qualifications have
enhanced his operational knowledge as
well as teaching and research capabilities
in financial markets.
He started his university teaching and
research career at the Ogun State
University , Ago-Iwoye, where he worked
between 1984 and 1985 and
subsequently at the Federal University of
Technology, Owerri between 1985 and
1988. He joined the banking and finance
industry in 1988 and served as special
assistant to the Chief Executive Officer of
Progress Bank Nigeria Plc. (in liquidation)
between 1988 and 1990 as well as Head,
Corporate Planning and New Products
Division of ABC Merchant Bank Nigeria
Limited (in liquidation) between 1990 and
1994.
He moved on to the ESUT Business School
Lagos (affiliate of the Enugu State
University of Science and Technology,
ESUT, Nigeria ) where he was Assistant
Director and Head of Training and
Consultancy between 1995 and 2000. He
returned to the formal university system
when he joined the Department of
Economics of the University of Lagos ,
2001.
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