CBN Doubts Success of Vision 2020
- By Simeon Ogoegbulem
- Published August 9th, 2010
- News
- Unrated
MR. Sanusi Lamido Sanusi, governor of Central Bank of Nigeria (CBN) has criticized the on-going Vision20: 2020 programme saying that the project designed to launch Nigeria into the club of top 20 economies by 2020 may end up a mirage as the critical structures necessary for its success have yet to be factored into the project.
Sanusi ,who spoke in Lagos , at the 38th Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (Man), where he was a guest speaker, expressed fear over the Vision 2020 project, saying that the relevant structures were not in place few years prior to when the programme was supposed to kick off.
“We have to make sure that the vision is not the vision of an intoxicated man,” he said. “We say we want to overtake Belgium but what are we doing to overtake Belgium?”
Sanusi said any vision that is not foundated on productive activities is doomed to fail as dependence on primary exports does not promote meaningful economic development. According to him, Vision 2020 required a vibrant industrial sector, which is the root of the economic prosperities recorded by the advanced societies and wondered why efforts.
He noted that if the programme is to succeed, the power problem in the country needed to be addressed while security and transport infrastructure problems must be fully addressed, adding that there is also need to have a very conducive investment climate, even as the petroleum sub sector has to be deregulated.
“I love the Vision 2020 but my fear is that the power situation needs to be addressed,” he said. “The solution is to implement the legislation on power reform and our ambition is to generate 6,000 megawatt of electricity. How many industries can it carry? South Africa with just 40 million people generates over 40,000 megawatts. You need to create an environment.
“We have to transform the environment. This is the only country in the world where over 70 per cent of the power is privately generated. I have no doubt that if the national grid was to collapse, manufacturers will still be in business.”
Sanusi who spoke on the theme “Enhancing the flow of credit to the manufacturing sector in Nigeria through the ongoing banking sector reform,” stated that the reason for reforms in the banking sector was to ensure that banks are strong, sound and reliable in terms of corporate governance, asset quality, solvency and capital adequacy, and operation efficiency. These, he believes, are crucial for credit availability to the real sector.
He told the manufacturers that the apex bank will continue to look for ways to consolidate on the gains achieved from the banking reforms. He further assured that the CBN is determined to move the real sector forward, and to pro-actively position the banking system to become a sound and reliable catalyst for development.
A refocuses banking system will engender access to finance for viable real sector, small and medium enterprises (SME) businesses and investment in infrastructure,” he said.
Mr. Bashir Borodo, out-going president of Man in his appraisal of “50 years of Nationhood: the status of the manufacturing sector in Nigeria,” said besides natural resources endowment and committed leadership, consistency of policy for at least 15 to 20 years is critical for economic take-off and sustained growth.
“In a society where the mind-set is to rubbish one’s predecessor in order to gain acceptance or sometimes political legitimacy, the game in town is to discard any existing policy, replace it with a new one.”
Borodo, who handed over the leadership of Man to Chief Kola Jamodu, as new president, decries continuous policy changes, reversals and flip-flop.
Sanusi ,who spoke in Lagos , at the 38th Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (Man), where he was a guest speaker, expressed fear over the Vision 2020 project, saying that the relevant structures were not in place few years prior to when the programme was supposed to kick off.
“We have to make sure that the vision is not the vision of an intoxicated man,” he said. “We say we want to overtake Belgium but what are we doing to overtake Belgium?”
Sanusi said any vision that is not foundated on productive activities is doomed to fail as dependence on primary exports does not promote meaningful economic development. According to him, Vision 2020 required a vibrant industrial sector, which is the root of the economic prosperities recorded by the advanced societies and wondered why efforts.
He noted that if the programme is to succeed, the power problem in the country needed to be addressed while security and transport infrastructure problems must be fully addressed, adding that there is also need to have a very conducive investment climate, even as the petroleum sub sector has to be deregulated.
“I love the Vision 2020 but my fear is that the power situation needs to be addressed,” he said. “The solution is to implement the legislation on power reform and our ambition is to generate 6,000 megawatt of electricity. How many industries can it carry? South Africa with just 40 million people generates over 40,000 megawatts. You need to create an environment.
“We have to transform the environment. This is the only country in the world where over 70 per cent of the power is privately generated. I have no doubt that if the national grid was to collapse, manufacturers will still be in business.”
Sanusi who spoke on the theme “Enhancing the flow of credit to the manufacturing sector in Nigeria through the ongoing banking sector reform,” stated that the reason for reforms in the banking sector was to ensure that banks are strong, sound and reliable in terms of corporate governance, asset quality, solvency and capital adequacy, and operation efficiency. These, he believes, are crucial for credit availability to the real sector.
He told the manufacturers that the apex bank will continue to look for ways to consolidate on the gains achieved from the banking reforms. He further assured that the CBN is determined to move the real sector forward, and to pro-actively position the banking system to become a sound and reliable catalyst for development.
A refocuses banking system will engender access to finance for viable real sector, small and medium enterprises (SME) businesses and investment in infrastructure,” he said.
Mr. Bashir Borodo, out-going president of Man in his appraisal of “50 years of Nationhood: the status of the manufacturing sector in Nigeria,” said besides natural resources endowment and committed leadership, consistency of policy for at least 15 to 20 years is critical for economic take-off and sustained growth.
“In a society where the mind-set is to rubbish one’s predecessor in order to gain acceptance or sometimes political legitimacy, the game in town is to discard any existing policy, replace it with a new one.”
Borodo, who handed over the leadership of Man to Chief Kola Jamodu, as new president, decries continuous policy changes, reversals and flip-flop.
