Transformation Agenda And The Economy

By Socrates Chime

In his essay, ‘Social Analysis of the Transformation Agenda of President Goodluck Ebele Jonathan’, published in the European Scientific Journal, John E. Gyong, a sociologist from Ahmadu Bello University, Zaria, presented a classic analysis of the Transformation Agenda, its strengths, weaknesses and what it must take to realise its targets. According to the sociologist, Nigerians are familiar with their leaders coming up with visions and policies. He, however, maintained that Jonathan’s five-year development plan (2011-2015) differs because it is a well thought-out policy document backed by a world class team of 28 technocrats, headed by Dr. Ngozi Okonjo-Iweala.

The Transformation Agenda was necessitated by the need to correct the flaws in the country’s drive for development where there is absence of long-term perspective and lack of continuity, consistency and commitment to agreed policies.  The effect of these has been growth and development of the Nigerian economy without a concomitant improvement in the overall welfare of Nigerians. According to information contained in the enabling document, the Transformation Agenda is based on and draws inspiration from the Vision 20:2020 and the first National Implementation Plan, NIP. The President stated that he has great confidence in the ability of Nigerians to transform the country. What should be required of his administration is to provide a suitable environment for productive activities to flourish. He also called on Nigerians to be change agents.

The Transformation Agenda is based on a set of priority policies and programmes which, when implemented, would transform the Nigerian economy to meet the future needs of the people. Implicit in the DNA of the Transformation Agenda is the determination of the administration to diversify the economy away from oil and ensure that the external sectors such as manufacturing, agriculture, solid minerals, and services sectors are vibrant.

The call by the President for everyone to enlist as agents of the Transformation Agenda was heeded by all well-meaning Nigerians, Ministries, Departments and Agencies, MDAs, of government with zeal.

Coordinating Minister of the Economy, Dr. Okonjo-Iweala, quickly got the President’s assent to introduce, for the first time in the country’s public service, a performance-based system that requires the various Ministries – and by implication, Departments and Agencies under them – to present their scorecards at agreed periods. The idea was to underscore the needlessness of a ‘workshop syndrome’ where ‘blueprints and strategic documents’ are churned out regularly, but filed away. The ‘bible’ for the Jonathan administration will be the Transformation Agenda document and commitment to its implementation should be the creed by which every public servant should live.

Among the institutions under the Federal Ministry of Finance is Nigeria Export-Import Bank, NEXIM. For NEXIM Bank, the question of embracing the Transformation Agenda was not just about political correctness, but more fundamentally because it is a raison d’etre for its existence. Fully re-inventing itself from a loss to profit-making institution in 2010 under the leadership of Roberts Orya, the then new NEXIM management, with the endorsement of its shareholders, embarked on a Strategic Transformation Plan (2010 – 2015) with the assistance of KPMG Consulting firm.

A key aspect of the initiative was the redefinition of the bank’s target sectors to focus on high growth sectors with significant employment generation potentials.  The sectors, termed “MASS Agenda”, are Manufacturing, Agriculture, Solid Minerals and Services. The services sector is further broken down into three major subsectors, namely, Creative and Entertainment, Tourism – Hotels, Resorts, and Arts & Craft – and Transport.

Towards delivering its mandate, the bank has, till date, intervened in the Nigerian economy by providing credit and risk-bearing support in excess N82.21bn and US$273.24 million to over 900 projects.  It has also aided the creation and sustenance of over 46,110 direct jobs and many more indirect jobs, in addition to generating over US$1.2billion in foreign exchange earnings. More specifically, from August, 2009 when the Orya-led management came on board, about N23bn has been disbursed and this has created 10,728 direct jobs and foreign exchange earnings of about $188.47mn. This statistics are almost five months retro, as the bank continues to improve on its performance by the day.

As the trade policy bank of the government, NEXIM participates actively in the formulation and implementation of the government trade and industrial policy. The bank is a member of the Trade Facilitation Task Force, which main mandate is to improve Nigeria’s ranking on ‘Trading across Borders’.  Towards this, the bank partners with relevant trade-facilitating institutions to organise seminars and discuss policy issues with agencies such as CBN, NEPC, NIPC, NDE, SMEDAN, NACCIMA, MAN, Chambers of Commerce, Nigeria Economic Summit Group, NESG. The bank is also the National Guarantor under the ECOWAS Inter-state Transit Scheme. On 22 February, in recognition of its role towards making Nigeria Africa’s export trade springboard, the bank was given the right to host the 2014 Borderless Alliance Conference.

NEXIM Bank has been involved in some of the President’s initiatives on targeted development in sectors/industries like tourism, cocoa, textile, cassava, sesame seeds and, more recently, the creative and entertainment industry through the Nigerian Creative and Entertainment Industry Stimulation Loan Scheme. This is part of the Federal Government’s effort to bolster the industry and has seen practitioners granted loans of over N800 million, according to data from the bank. One of the movies funded from the facility, Dr. Bello, is well on the way to becoming a global hit, with premieres across several continents and in about 50 theatres in the US alone.

Currently, NEXIM is in the last trimester of its gestation to birth the laudable Sealink Project, which aims to boost maritime trade within the economic community by 300 per cent. The new shipping company will connect West and Central African ports with a fleet of 3,000- to 5,000-tonne ships that will greatly reduce goods shipment times, in addition to lowering the cost of business for regional companies. The Federal Government has technically endorsed the Sealink Project. For all that, it will be not be a Government-driven project but private sector-driven or, at best, a PPP. On its part, NEXIM is merely facilitating the initiative, in collaboration with other stakeholders such as ECOWAS and the Federation of West African Chambers of Commerce and Industry, FEWACCI.

One of the key objectives of President Jonathan’s Transformation Agenda is in the area of encouraging large-scale industries and Small and Medium Enterprises, SMEs, to manufacture goods, revitalise ailing industries, promote agriculture and agro businesses, encourage local content strategy and develop Information Technology and Communication, ICT, to be the major driver of the economy. With the giant strides NEXIM is taking, it is safe to say that the Transformation Agenda is realistic and achievable.

 – Chime, Ph.D, a former diplomat, resides in Lagos.