Osinbajo chose the graduation ceremony of the Senior Executive Course 39 of the National Institute of Policy and Strategic Studies (NIPSS) in Kuru, Jos that Saturday to deliver this message, embedded in a long speech that was loaded with bundles of the administration’s achievements, with special focus on the present state of the nation’s economy and its journey in the next 12 months.
“We stopped the siphoning of funds through ghost workers by insisting that all MDAs must be on the Integrated Payroll and Personnel Information System (IPPIS) across government, and also mandated the use of BVN.
“Over 461 Federal MDAs have been captured on the system thus far, with the objective being able to enroll all of them. We are now saving N25billion a month, from cleaning up the payroll in this way. The President has also ordered all Armed Forces personnel to be captured on IPPIS,” he said.
It is important to understand, he noted, what these measures to block leakages and stealing of public resources mean for economic performance. “I will demonstrate that impact.”
According to him, over 22 States were owing salaries when they came into office despite the oil boom of between 2011 and 2015, when a barrel of crude oil was selling for between $100 and $115 and yet reserves between 2014 and 2015 fell from $35billion to $28billion in April 2015.
His words: “when we came into office, oil prices fell as low as $28 a barrel, the unrest in the Niger Delta, especially the vandalization of pipelines and oil and gas assets reduced the production at some point by over a million barrels a day. Revenues dropped by as much as 60%.
“But with 60% less revenue, we started a series of bailouts for the States, to enable them pay salaries and pensions. With 60% less revenue, we were able to provide about N1.3trillion for capital expenditure, the largest amount for capital in our nation’s history.”
For the first time in five years, he stated, the administration saved $500million, and invested another $500million in the Sovereign Wealth Fund. “Today our external reserves stands at $35billion the highest in the past four years.”
According to him, the economic focus and direction of the Buhari administration is set out in the Economic Recovery and Growth Plan – the ERGP, based on a set of principles, broad principles, and certain key action points including eliminating corruption in government procurement and processes, prudent management of resources, social inclusion, overcoming constraints such as power, petrol and skills shortages, promotion of the private sector, and use of the market mechanism where possible.
“We have worked hard to keep faith with these crucial principles. In particular we are committed to ensuring that Nigeria does not return to the years of corruption and waste, where people at the highest levels of government simply converted to private use, funds and public resources meant for the building of public infrastructure and the provision of services.
“We must pay attention to what we are seeing today, and some of the shameless noises of those who brought our nation to its knees, many of whom still have looted funds in their possession, trying to rewrite history and hoodwink the populace again. We say never again!
“The decline in growth which started in 2014, Osinbajo noted, “has been reversed with the third quarter figures released earlier this week, showing that the economy has truly exited recession with the growth of 1.4%.”
Osinbajo said a further analysis of the Q2 2017 GDP results indicates that the recovery was driven largely by the performance in agriculture, industry, solid minerals and crude oil and gas production.
“Agriculture, which is a main focus of this administration, as stated in the Economic Recovery and Growth Plan (ERGP), grew strongly throughout 2016 despite the contraction in the overall economy, continued to grow in 2017 recording a 3.06% growth in Q3 2017.”
According to him, industry which had contracted for nine consecutive quarters, but recorded its first positive growth of 1.45% in Q2 2017, and it has grown stronger in Q3 2017, growing by 8.83% compared to a contraction of -12.66% a year earlier.
“This represents the strongest growth in industry since Q2 2014, when industry grew at a similar rate of 8.97%.”
He the oil sector also grew strongly, partly due to actions of government which, according to him, has led to stable oil production and an improved situation in the Niger Delta, as well as oil prices remaining steady.
“Oil production GDP grew very strongly by 25.89% in Q3 2017 compared to 3.53% in Q2 2017, and a contraction of -23.04% in Q3 2016.
“Inflation continues to fall from a peak of 18.72% in January, to 15.91% today. Similarly, as noted earlier, our reserves are now at about $35 billion while the exchange rate regime has been stabilized. We are confident that the Naira will continue to appreciate.”
Osinbajo pointed out that one of the administration’s biggest priorities was making the lives of the poorest and most vulnerable better.
“Right from the presidential campaigns that preceded our coming to serve, we had made it very clear that we would be a government for the poor and vulnerable.
“We designed an ambitious Social Investment Programme to accomplish this, comprising four initiatives; a jobs’ scheme for unemployed graduates, a micro-credit scheme targeting SMEs, a Home-grown School Feeding Scheme, providing one free meal a day to primary school pupils, and a Conditional Cash Transfer Scheme for the poorest Nigerians across the country.”
“Thus while we continue to bask in the improvements in our ranking, and the citation of Nigeria as one of the 10 best reforming economies in the world, we realize that our task is far from being done and will remain focused on the ERGP objective of being in the top 100 countries in terms of ease of doing business by 2020.
“Until the average Nigerian has food on his table, has a job and is satisfied with the life that he is living, we are far from preparing any kind of celebration.”
Osinbajo said one of the principles underpinning the administration’s economic planning that is often overlooked is the commitment to upholding core values.
“Our desire for change must translate into strengthening ethics especially patriotism, integrity, ethnic and religious tolerance. We must strive to build a fair, just and equitable society, that prefers investment to consumption, thrift over waste and which celebrates integrity over corruption.
“These values are not only morally right, but they are also essential underpinnings for restoring growth, investing in our people and building a globally competitive economy.”
Vice President Osinbajo congratulated the participants graduating from NIPSS, saying: “I have no doubt that you will all be returning to your respective duty stations full of insight and understanding of our national policy space.
“I urge you to deploy the knowledge gained here in support of the national development efforts in whatever positions you find yourselves. The proof that you have a role to play in evidenced by the very vibrant, committed and forward looking Alumni Association that you have joined.”
He commended the Acting Director-General and Faculty of NIPSS to whom, according to him, has been given the critical task of developing the Nigerian policy infrastructure, and for their commitment to maintaining the dynamic spirit of Kuru.
“The Federal Government is aware of some of the challenges that the Institute continues to face, we are committed to resolving them,” he said.
“NIPSS occupies an important place in our national policy discourse, especially through its policy-relevant training and research outputs. Notably, the NIPSS alumni provide a patriotic repository of knowledge that is very often deployed in support of national development objectives,” Osinbajo noted.
He described the event as a celebration of success, and in many ways, also symbolic of the opportunities that will arise from completion of a year of rigorous learning and reflection, for participants, and the Federal Government.
“And it also provides me an opportunity to share some thoughts on the trajectory of our national economic development with the Nigerian policy elite, to which distinguished group, you now rightly belong.”
