Former World Bank chief Ngozi Okonjo-Iweala, Mr Olusegun Aganga minister of Trade and Investment as well as Nigeria’s Central Bank Governor Lamido Sanusi are expected to spearhead Nigeria’s economic recovery, but how the two ministers deal with tensions between them and the CBN will determine their success.

Dr. Okonjo-Iweala is expected to take up the role of Coordinating Minister for the Economy and Minister of Finance, Monday 15, an expanded version of the role she held between 2003 and 2006 when she successfully secured Nigerian debt relief. Dr Okonjo Iweala is believed to have negotiated with the President clear terms on which she would be willing to return to serve in government, including being given broad powers over economic management and freedom from political meddling.

Dr Okonjo Iweala and Olusegun Aganga are big personalities that are well respected internationally. Sanusi the CBN Governor has in recent time spread his remit well beyond the fundamental role of the central bank which may lead to a clash of personality in not too distant time.

However, the creation of the Ministry of Trade and Investment seems to be paying off for the country as local and international investors are buying into the programme of government raising hope for multi-million dollar investments in Nigeria.

Strategic appointment

When the Minister of Trade and Investment, Mr, Olusegun Aganga, was appointed to drive the new initiative, the Organised Private Sector saw the appointment as strategic, especially considering the fact that his wealth of experience in investment and real sector matters, which he displayed even as the Minister of Finance, was more needed in the industry than anywhere else.

The President, Manufacturers Association of Nigeria, Chief Kola Jamodu, alluding to this fact recently said the organized private sector was indeed happy that Aganga had been posted to conclude the good works he started as the country’s finance minister, even though he wished that the Ministry of Trade and Investment could have been expanded to accommodate the name “industry”.

The captains, majors and generals of the Nigerian business community at the maiden interaction between the ministry and the local business community in Lagos two weeks ago was the first sign that the country is about to witness a remarkable change in real sector activities. The Group Chief Executive Officer, Dangote Group, Alhaji Aliko Dangote, Chairman Ikeja Hotels, Mr. Goodie Ibru; Chairman, Nigerian Bottling Company Plc, Segun Akpata; Chairman, HoneyWell Group, Oba Otudeko, among other notable industrialists pledged investments running into trillions of naira in critical projects that will impact positively in the living standards of Nigerians in the next four years.

Transformational agenda

Mr. Aganga

Some banks, including First Bank of Nigeria Plc, Stanbic IBTC bank Plc, United Bank for Africa Plc and Zenith Bank Plc, among other strong banks; have also indicated willingness to invest in key sectors of the economy that will help to drive the transformation agenda of President Goodluck Jonathan.

Notwithstanding the usual perception of policy inconsistency in the country and the poor infrastructure snag in investment matters, foreign investors have also continued to show keen interest in investment opportunities in Nigeria. ‘Deep pocket’ investors from the United States, United Kingdom, Australia, China and other countries have visited the trade and investment ministry to seek for investment opportunities that can be explored for mutual benefits. Experts have said that Aganga’s Goldman Sachs background was a key factor that has raised the confidence of the international community in the Nigerian economy.

With Aganga driving real sector growth and the momentum gathered in preparation for job and wealth creation, the job of the Minister of Finance, Dr. Ngozi Okonjo-Iweala, another star cabinet member of Jonathan’s administration, may be much easier.

Notwithstanding the misconception about the two key appointments in some quarters, a frontline industrialist, who asked not to be named, because he could not comment publicly on the matter, said Okonjo-Iweala and Aganga were friends coming from the Diaspora with the same passion about their country, Nigeria, adding that, with their belief in each other’s abilities, the Nigerian economy would be the better for it.

“From what I know about the two key ministers’ capabilities as well as the good relationship they have going for them, I think this is the time to really expect a turnaround of the Nigerian economy,” the industrialist, who spoke with journalists recently in Lagos.

To meet the target set for unlocking capital and growing the real sector of the Nigerian economy, taking the trade and investment minister began his job with a three-day retreat with the directors and chief executive officers of the ministry.

The retreat was targeted at making the staff of the ministry key into the new drive with a view to changing their orientation in preparation for the hard work ahead. Aganga noted at the retreat that the whole idea of the transformation agenda was to create economic growth in the country and ensure the creation of jobs, stressing that the ministry would focus on the implementation of mandatory skills transfer to Nigeria by foreign construction companies as well as develop industrial clusters for the real sector.

The Bank of Industry, Department of Trade in the ministry and the other parastatals and agencies under the ministry have also mapped out clear plans to create additional three million jobs in the next three years as the first step towards the eradication of poverty in Nigeria. This was one of the highpoints of the communiqué issued at the end of a three-day retreat of the ministry in Abuja.

Backward integration

According to a statement from the ministry, as part of the strategies towards achieving this, the different departments and parastatals will develop a comprehensive backward integration programme aimed at improving innovation and productivity for rice, sugar, wheat, yam, potatoes, starch and palm produce, among others. The statement said the ministry would establish model industrial clusters in each geo-political zone across the country.

It said, “In line with the mandate to lead the nation’s investment, job creation and economic growth aggressive investment drive, the ministry must be refocused and repositioned in order to effectively serve as the flag and hub of industrial revolution that will help Nigeria take its rightful place in global affairs. In this regard, departments, agencies and parastatals under the ministry have pledged to create not less than 3,100,850 new jobs within the next three years.

“To achieve effective export promotion, participants agreed on the need for increased efforts towards streamlining the nation’s export produce and documentation as a way of facilitating trade through stronger collaboration with all relevant trade facilitation.”

With the right awareness campaign and the momentum already being gathered for investment growth, the stage is set for Okonjo-Iweala to perform in the right direction.

Vanguard

"I strongly believe that we should try as a country as much as possible live within our means."

Dressed in a blue blouse and skirt made of African print with black spots and with her landmark headgear, Mrs. Okonjo-Iweala entered the Senate chambers at precisely 12.10 p.m. and was let off at 1.15 p.m. for ministerial screening.

She was quizzed on several issues pertaining to the economy and for the first time was publicly made to disclose reasons for her unceremonious exit from the Olusegun Obasanjo cabinet.

Noting that Nigeria was eating out of what it should be using to develop itself, Mrs. Okonjo-Iweala said: "I am really worried about the issue of making sure our budget is not eaten up by recurrent expenditure. How can we invest in capital if we’re spending all our money on recurrent expenditures. Can we run a budget that is not negative? Absolutely. We can do it, we have done it. We have been able in the past.

Recurrent expenditure

"I strongly believe that we should try as a country as much as possible live within our means. Right now we need to work very hard because the budget that we have is such that the current expenditure is almost 74 per cent of the budget, therefore, there is not as much left for capital, so we need to work hard to put in place policy that will make it possible to continue to implement fiscal policies that will enable us to tackle the various challenges in the economy while at the same time living within our means."

She noted that the recurrent expenditure was crowding out other necessary investment in infrastructure especially power and as such solicited the help of senators to help the executive branch of government by giving the push to cut down recurrent spending.

Also noting the effect of unemployment on the economy, she said: "I think the main problems in the economy have to do with creating jobs. We have unemployment rate of about 14 to 16 per cent, but very large under-employment and the issue is how to make the economy growing in a way that it will create jobs, so those fiscal policies have to be supportive of sectors that are going to be job creating, because we now have growth, but we need to translate that growth into jobs, so those are the kinds of fiscal policies that we need to encourage. We should privatize sectors that are job creating."

Noting the declining performance of the federal budget, she said: "When I joined the administration of Chief Olusegun Obasanjo, the budget implementation was 30 percent in 2003, we got up to 90 and 85 percent as at the time I was leaving. And that was a good for any country. As at now the implementation is at 53 percent. I don’t see any reason why the budget will not be fully implemented, if it is reasonable and delivered on time. Budget will be fully implemented if the revenue is coming with less expenditure."

Expressing concern that the country was not maximally exploiting its oil revenues, she said: "We are losing reserves, it shouldn"t be, we should be increasing our reserves, at the same time. I am aware that part of the reserve maybe due to decision to support the naira, I don’t think is something that is untoward, but if we want to revalue the naira this will not be the time to think about it. I think we should wait until things are more stable, we are growing our economy, we are creating jobs, we make sure our young people are working and the sectors we have are really giving what they should before we think in that direction."

Investment in oil sectcor

Answering a question on the Joint Venture Companies, JVC, Okonjo-Iweala said: "On the issue of JVC I think there are number of modalities that many countries use to manage the oil sector, exploration in their countries and investment into the oil sector. I think the problem that we have is that our own portion of the joint venture over time we have difficulties meeting that, but I don’t see anything wrong with them per se, I think in the beginning if you are going to go that route, you really need to have strong presence and advise to make sure that what you negotiate really obeys the law that will be of benefit to the country at the end of the day after the whole process."

Inevitably, she was drawn to why she had to resign from the Obasanjo government after her successful role in erasing most of the country’s debts to the Paris Club of debtor nations.

She said: "I did not run away, I was here. I resigned, I served the country for about three years and when I determined that I could no longer perform and give to the country the way that I would want, I resigned, which is the honourable thing to do, so I did not run away. When the circumstances are appropriate to serve, you serve and if they are not appropriate, you go and do something else. I think three years plus of service is quite substantial, not only in Nigeria, but elsewhere in other countries, it is regarded as a good amount of time to have given the country and I intend to implement and if Iam cleared I will do my job."

On the usefulness or otherwise of sustaining the subsidy on petroleum, Mrs. Okonjo-Iweala said that subsidy was a good instrument needful in narrowing the economic gap between the rich and the poor but lamented that where it is not effectively utilized it becomes wasted.

She said that she was especially touched by the wide gulf between the rich and the poor in Nigeria saying that narrowing it was one of the incentives for her returning to the federal cabinet.

She noted: "We have coefficient of inequality. It is this inequality that is holding us down. People keep asking why I want to come back to work, but the reason is simple. In a country where the rich keeps getting richer and the poor keeps getting poorer, we need to bridge the gap. We live in a country, where the rich can just wake up and decide to travel abroad, just as their children school abroad and have access to good healthcare. On the part of the poor, the reverse is the case."

In addition, Iweala said: "The children of the poor don’t have good schools to attend to and no good healthcare system in a country of 150 million people. That is the inequality we are talking about. We must change this because I know it is possible to do so. I will ensure that we improve the lot of the common people, in order to prevent our young people from moving abroad."

Vanguard's HENRY UMORU, CHARLES KUMOLU, INALEGWU SHAIBU& OGECHI OHAEGBULAM

Africa is most profitable area, say economists

Africa is the world’s most profitable region, says Econometrix chief economist Azar Jammine. At a presentation in Johannesburg yesterday, he cited an analysis by the University of Oxford which showed that, adjusted for risk, Africa came out “way above” Asia and Latin America.

Jammine, with Frontier Advisory chief executive Martyn Davies, presented the findings of the MasterCard Worldwide Insights report, entitled Taking Stock: The State of Sub-Saharan Africa.

The report shows growth in the region has not been dominated by mining. Between 2002 and 2007, the fastest growing sectors were hotels and restaurants, with annual growth of 8.7 percent; financial services at 8 percent; transport and communications at 7.8 percent; construction at 7.5 percent; and utilities at 7.3 percent.

“Services are just as important, if not more important, than resources, in terms of economic opportunities,” Jammine said, but noted manufacturing and agriculture lagged.

Jammine and Davies painted a convincing picture of the recent continental success story, after decades of lagging the world. Since 2000, when The Economist magazine labelled Africa “The Hopeless Continent” in a controversial cover story, the region has experienced the third-fastest economic growth in the world.

“Ironically this publication appears to have marked the turning point in perceptions of economic opportunities on the continent,” the report said, predicting Africa would take over from China and India as the world’s engine of growth.

The report showed sub-Saharan Africa was the only region in the world that saw an increase in foreign direct investment (FDI) during the 2007/08 financial crisis and the global recession that followed.

The continent is vast – 30.3 million square kilometres – big enough to accommodate China, the US, western Europe, India and Argentina.

And it has the fastest growing population in the world, set to top 1 billion within the next six years, providing a major share of the world’s future workers, Jammine said. “We are talking about an increase of 700 million working age people over the next 40 years, bigger even than the 600 million increase we are looking for in Asia.” He contrasted it with western Europe, where there would be a 23 percent decline.

Sub-Saharan Africa is urbanising rapidly – with cities growing faster than in any other region. It has 52 cities with more than 1 million people, more than double the number in 1990.

This pattern of development created a massive demand for infrastructure, goods and services, Jammine said, “and offers immense opportunities to supply the requirements of an urbanising population”.

A resource that is still relatively untapped is land.

Jammine said Africa had 60 percent of available arable land and had the potential to be a bread basket to the world.

Only a third of arable land had been cultivated in Africa which meant there were “enormous possibilities if one can develop the farming acumen and acquire the technology within the continent to develop the agricultural resources”.

But there are challenges.

Davies pointed out an anomaly: despite its growth rate Africa is falling behind in terms of competitiveness. South Africa, which performs best, ranks only 54 out of 139 countries on the World Economic Forum’s competitiveness index. Davies warned that the region’s growth could stall and even decline without greater competitiveness. - Business Report

Nigeria for permanent membership

In Seoul, capital city of South Korea the leaders of G20 nations will soon gather again for an important summit. G20 is powerful group of developed and emerging economies that dominate the global economic scene and have a lion share of 95 percent of the world economy. The fundamental purpose of the group is to stabilize the world economy. Without doubt G20 is the place to be and any important nation missing in the action will definitely felt the financial and economic ramifications.

Nigeria for all the encompassing reasons should have been the permanent member of the group. But due to her prior devastating ‎ political-economic structural imbalances she was inhibited from not making the membership at the inception of the group. Intrinsically, things are gradually but steadily changing in the country and Nigeria is making progress that must be appreciated. Democratic capitalism is taking holds in the country; the politics of military dictatorship has given away to democratic pluralism. Economic strangulation by collectivism and centralization has been reformed and economic opportunity is becoming reachable. Nigeria is heading towards a right direction but she is not yet home free.

Even with the accumulative progress Nigeria is still not invited as a permanent member as the “Twenty world leaders come together in Seoul this November to discuss the state of the global economy as it emerges from the financial crisis. Together, they will take the necessary steps to reduce market volatility and move past the crisis, creating sustainable growth going forward.”

The government of the President Goodluck Jonathan is steadily rising to the occasion of protection of lives and property. By no means one cannot  boast that Nigeria is a perfect nation. One thing for sure Nigeria as a nation has begun to make the serious decision and showing signs that she is willing to make changes -  to make life better and livable in the second largest economy in Africa and the most populous country in the continent.

President Goodluck Jonathan is making a progress that should be encouraged and nurtured. The government of Nigeria under his leadership is making practical plans to have a free and fair election in 2011. He is making effort in turning around paucity of energy in Nigerian industrial landscape. The major vulnerability of Nigeria’s economy is insufficient electric power supply which has hampered maximum economic output and industrialization. Recently, a large resource was set aside to revamp electric energy supply coupled with privatization proposal. We can say for sure that Nigeria is moving in the right direction.

The principal global economic powers especially United States and China are highly committed to financial global stabilization inorder to enhance trade and commerce with modest inflation and deficits. They should recognize the importance of Nigerian active participation on economic global scene as a full member of G20. Nigeria has a bulging GDP and is a major supplier of oil to US and China. Therefore Nigeria as an acceptable economic powerhouse can aid to stabilize Africa in general and the West Africa sub-region in particular.

Nigeria is making a substantial move to address her structural imbalances in the area of economics and politics; the admission into G20 will booster her confidence as she strives to better her Scio-economic and political standing in the world. Africa needs Nigeria to make it and a responsible and successful Nigeria, will impact positively to Africa.

Nigerian economy is growing steadily at 7.3 percent in second quarter of 2010 and is being projected to grow to 10 percent in 2011. The Nigerian GDP was about $207 Billion in 2008 and foreign debt-to-GDP ratio is estimated at about 3.1 percent. With a sustainable debt and one of lowest debt-to-GDP in the world, Nigeria is poise for tremendous growth in near future.

Nigeria does not necessarily have to lobby to be admitted to G20 but she must made her case to the august body and reminds everybody that a stable and economically growing Nigeria will contribute immensely to the stability of the global economy.

Most importantly, President Jonathan must be encouraged in his challenging goal to improve the lot of the country. The best thing that the rest of the great emerging powerful economies including China, India, Brazil and South Africa could do are to play a vital role in making the permanent membership of Nigeria to G20 possible.

Nigerian economy is growing at a fast pace. This year at the tail end of second quarter the economy is growing at the rate 7.3 percent compared to the global sluggish and anemic growth. “According to forecasts by OECD (Organization for Economic Cooperation and Development), global economic growth this year will be 4.6 percent compared to 3.4 percent forecasted by the organization earlier. In 2011, the OECD expects growth in the global economy at 4.5 percent compared to 3.7 percent projected earlier. Faster recovery of the global economy takes place at the expense of economic growth in Asia. In particular, China's GDP growth is projected at the level of 11.1 percent this year.

Econometric forecasting "provided by the International Monetary Fund (IMF), global economic growth will amount to 4.2 percent this year.”  And Nigeria is projected to grow at 10 percent in 2010 and preceding year. This is keeping Nigeria in a good company of one of the fasted growing economies in the world.

For the concerted and coordinated global economic growth and financial stabilization, the G20 cannot afford to overlook the importance of Nigeria. As an emerging economy and leader in the continent of Africa, Nigeria is a resourceful nation. Nigeria needs a permanent seat at the table where economic decisions affecting Nigeria and Africa are made.

Nigeria’s jobless economic growth

Nigeria’s economy is growing and the statistics coming from National Bureau of Statistics (NBS) are testament to the blossoming GDP. Well, this side of the story is rosy on the paper, but the other side which is the reality is that regular people are suffering with massive poverty and unemployment. The rosy economy does not reflect on the poor masses. The paradoxical outlook is pointing to the inability of the growing economy to ameliorate the living conditions of the working people.

To be conservative with numbers, Nigeria makes at least $50 million dollars daily from the export of the crude oil and investments are streaming into oil and non-oil sectors.  The country’s foreign reserve is about $38.2bn and the economy is growing at second quarter at the rate of 7.3 percent. It is beginning to look that the new emerging paradigm of economic growth in Nigeria does not come with benefits. While Nigerian economic is growing at the rate of 7.3%, the unemployment is scaling at 19.7 percent according to statistics from National Bureau of Statistics (NBS). This is troubling to a nation of which 70 percent of the population is living in poverty.

Realistically, unemployment at 19.7 percent cannot be accurate.  With enormous joblessness in rural areas where most Nigerians dwell, the rural unemployment when factored into the equation together with the alarming unemployment among our youths, the unemployment figure from NBS cannot be accurate. The jobless economic growth poses a great trouble to policy makers in the country and they must be scrambling to do something about it. Even the Minister for Finance Olusegun Agaga is disappointed with the inconsistencies of the economy, he said, “the paradox of a growing GDP at the same time as we are witnessing growth in unemployment, which is most severe on youth in urban areas.” The Honorable Minister Agaga has good intentions but his options are limited.

“However in the same period, the national unemployment rate has risen annually, from 11.9 per cent in 2005 to 19.7 per cent in 2009, according to the National Bureau of Statistics,” said Minister of Finance Olusegun Agaga. He further acknowledged that real GDP of the country has been thriving at sound footing consecutively for previous five years, measuring at six percent or higher each year between 2005 and 2009.

With global exposure of the Minister of Finance, Mr Olusegun Aganga, a former Goldman Sachs executive appointed in March by President Jonathan, he recognised that such a paradox in the economy cannot be sustainable in the sense that the alarming poverty and poor quality of existence in the country lowers the standard of living.  The perilous situation is unacceptable for the youths energy must be directed to productive venture that will enhance quality of life. The quantum increase of crime and social ills associated with unemployment cannot be overemphasised.

On the inflationary trends, Wall Street Journal reported that, “Nigeria's annual inflation rate rose to 13% in July from 10.3% in the preceding month, the National Bureau of Statistics, or NBS, said on its website. The higher inflation rate was attributed to the rising prices for food items like yams, potatoes, meat, fish, cooking oil and fresh tomatoes. Nigerian inflation stood at 11% in May, 12.5% in April, up from 11.8% in March. It was 12.3% In February and January, and 12% in December 2009. Nigeria slowed inflation for most of 2006 and 2007, achieving a single-digit rate.”

The observation that is gaining momentum is that monetary policy has run its course and its application to resolve and control inflation is waning. Nigerian policy makers must look outside the conventional solution particularly on the usage of monetary and fiscal policies to restrict inflation. The next bold move is to strengthen economic output in the country. This not the clamping down on foreign imported goods but to gradually increase the incentives to attract local investors to start manufacturing in the country and raising the raw materials from the country. The key is to encourage local investors who know the terrains of the local economy to rise to the occasion of satisfying the final consumers.

The budgetary location at the tune of N704 naira has been release to the state and local governments. “Nigeria sold 126.46 billion naira of 20-year, 5-year and 3-year sovereign bonds at its eighth debt auction of the year, the Debt Management Office (DMO). It sold 41.64 billion naira in the 20-year papers, 42.33 billion in the 5-year bonds and 42.49 billion naira in the 3-year instruments at an auction. The amount raised was 20 percent more than the 105 billion naira the debt office initially proposed to auction.”

Reuters reported that “Nigeria sold 5-year and 3-year sovereign bonds at its eighth debt auction of the year” and it was confirmed by Debt Management Office (DMO). Nigeria was reported selling 42.49 billion naira in the 3-year, 42.33 billion in the 5-year bonds and 126.46 billion naira of 20-year.  Earlier, Nigeria sold through DMO 42.49 billion naira in the 3-year instruments, 42.33 billion in the 5-year bonds and 41.64 billion naira in the 20-year papers. “The marginal rate on the 3-year bonds rose slightly to 7.54 percent from 7.48 percent last month, the 5-year paper was up to 9.25 percent from 8.85 percent and the 20-year bonds climbed to 11 percent from 10 percent.”

There is no doubt that Nigeria is fast becoming bullish in selling bonds to raise money. Nigeria must realize one essential component of issuing bonds is the unflinching commitment to honor the debts when they attained maturity. DMO may be hearty and excited to be selling those bonds but they have a big work for them in near future.  Debt Management Office (DMO) has to justify the issue of the bonds and to make sure that no scandal or mismanagement will lower Nigerian financial ratings from Standard and Poors.  The money raised by Nigeria must be prudently invested with probity and transparency to bolster the confidence of the market.

Naira is hovering at slightly below and above N150.70 to dollar, which is not really bad. The demand of dollar is quite high at the local market which can justify the weakening of naira which can be compensated by the monthly sales of dollar by big energy companies.  The foreign reserve which stood $38.2 billion can act as a war chest to safeguard the value of naira.

Nigeria’s economy is churning along after the problems of liquidity and banking sector meltdown that nearly crushed the financial market. The economy is progressively in recovery and it looks like the confidence of Nigerian consumer is gradually rebounding. But we cannot say for sure the exact figure because quantification of confidence has not been documented nor recorded. All the economic indicators are pointing in affirmative and right direction. Therefore the economy can be say to be relatively healthy, the key economic indicators including the inflation rate is at 11% in the month of May. The increasing inflationary pressure which subsided from 12.5% to 11% year-on-year is a good response and these recent indices were documented by Nigeria’s National Bureau of Statistics (NBS). The food price inflation also came down in the second quarter from 14.3% in to 12.3, a sign that the gripping hands of inflation around the economy is waning.

Without doubt the monetary policy coming from Sanusi’s Central Bank of Nigeria (CBN) has a positive outlook on the economy which has been growing at the rate 7.3% and attracting investments mostly in petroleum sector.

The "revised estimate for real Gross Domestic Product (GDP) by the National Bureau of Statistics (NBS) indicates that the economy grew by 7.23 percent first quarter of 2010 as against 6.7 percent it had earlier projected for the quarter." This is impressive compares to the world economy that has been expected to be growing at the rate 3.9 % in 2010 as result of the global recession.

The greatest threat to Nigeria’s standard of living other than inflation is unemployment; even with progressively growing economy at the rate of 7.3% the economy is not producing enough jobs to make a reasonable impact on employment. The Finance Minister Olusegun Aganga stated that unemployment in Nigeria was about 19.7% but financial and economic experts at Afripol Organization quantified that the real unemployment figure might be higher when rural and urban joblessness among the Nigerian youths are factored into equation. The collecting of data on employment will be probably cumbersome, if not difficult in rural areas where modern technology is scare and out of reach.

It must be noted that Nigeria has trade surplus with many western countries including United States at the tune of $5.5 billion. The executive arm of the government must work hard to rectify the inability to successfully implement the federal budget as it was written. As a result of shortfalls from oil revenue, Nigeria proposed issuing bonds of about N867.5 billion to finance its deficit. On the financing of budget deficit including the 2010 current expenditure the Director General of the Debt Management Office (DMO), Dr. Abraham Nwankwo reminded Nigerians that government is now borrowing from the capital market and particularly by issuing bonds to raise money. On borrowing Dr. Nwankwo did emphasis that: "Borrowing is a normal feature of all economies. Nigeria is currently one of the lowest in terms of ratio of debt to GDP (Gross Domestic Products). This does not mean Nigeria is doing well, as what is more important is whether the proceeds is being used judiciously." Therefore it is imperative that borrowed money or any money allotted for the budget is prudently utilized in its implementation.

President Jonathan reaffirmed the deficit issue on the letter he wrote to the lawmakers: "Specifically, recent revenue developments indicate significant shortfalls in both oil and non-oil revenue which may well continue for the rest of the fiscal year with adverse implications for the financing of the budget. Consequently, given the recent drop in international oil prices from over US$80 per barrel to under US$70 per barrel; it is prudent to revise the oil bench mark price to a more realistic level." He further states that, "The 2010 budget was predicated on a revenue benchmark of $67 per barrel of crude oil. But in his letter to the Senate, President Jonathan asked it to "revise downwards the aggregate level of expenditure from the N4.608billion approved in the 2010 Appropriation Act and adjust the budget details accordingly."

Daily Trust editorial, added: "In a bid to balance the budget, the federal government has also resolved to borrow from domestic and foreign sources. The 2010 budget will receive $500 million USD (N75 billion) from international bonds and has projected to borrow N897.3 billion from an already ailing domestic financial system. Several banks in the country have for several months survived on life line provided by the Central Bank of Nigeria (CBN) but the federal government still expects to suck such huge amount to finance the budget deficit."

The manufacturing sector recorded a lower output from " 7.03 percent in 2009 to 6.43 percent in 2010" due to lack of electric power and paucity of credit. Nigerian manufacturers do import a reasonable amount of raw materials from abroad and foreign exchange becomes an impediment to free flow of raw materials coupled with the government higher tariffs.

Mr Aganga, Nigerian minister of finance and a former managing editor at Goldman Sachs expected the economy to grow at 10 percent by 2012. According to him, Nigeria is making the requistive moves especially with rebuilding of the infrastructure, diversification and privatisation to ensure the positive economic growth.

Africa Political and Economic Strategic Center (Afripol) is foremost a public policy center whose fundamental objective is to broaden the parameters of public policy debates in Africa. To advocate, promote and encourage free enterprise, democracy, sustainable green environment, human rights, conflict resolutions, transparency and probity in Africa.

Nigeria the economic power house of West Africa sub-region was invited to the G-8 and G-20 combined summit that took place in the Western hemisphere nation of Canada. Nigeria is not an official member of either G8 or G20 but an invitation to the summit was given to her along with other important emerging markets of Southern hemisphere. South Africa was also at the meeting as an official member of G20. Nigeria and South Africa are largest economies in Africa. While South Africa is a member of G-20, Nigeria is not. Nigeria‘s GDP is bulging and her economy is growing at the rate of 7.23 percent in the first quarter of 2010 compares to the expected global rate of about 3.9 percent.

This is not the first time Nigeria has been invited to G-8 meeting. She has been coming to these meetings for a while including those held during the era of the former British Prime Minister Tony Blair and former US President George Bush. As a guest and as an observer to the summit, Nigeria cannot not fully and thorough participate in depth or take the advantage of a membership holder. The exclusive privileges given to the members of the group eluded of the country, particularly on the fiscal matters.

Why is Nigeria invited to these summits? Well, one can give an intelligent and reasonable answer without much guessing. Yes! Nigeria is the most populous country in Africa and the natural leader of the continent. Nigeria is a sleeping giant of Africa that has been in dormancy for a long time. Nigeria is rich in both human and natural resources but paucity of strategic managers to manage her efficiently has delayed her rise as a developed economic power in the continent. She has been invited to the summits because she has something to offer to the global village. For Nigeria as an economic unit can contribute to stabilization of the world economy by her active and comprehensive participation in the world economic system.

Nigeria could not make it as an official member of G-20 nations because during the formation of the group the country was both political and economic unstable. For a long time Nigeria was under ruler ship of a dictatorial authority and her economy were in miserable hands without adequate productivity and planning. The country‘s economy was fundamentally and structurally imbalanced. The economy operated in the cloak of opaqueness without transparency and probity. But the story is changing and Nigeria is singing a new tune. Democratic capitalism is gradually but steadily taking root in the country.

Now with emergence of democracy and steadily economic progress, Nigeria is ready to become a fully and active member of G-20. The fledging democratic dispensation needs to be nurtured and supported; therefore the best way of encouraging Nigeria is to be accepted into this August body. Nigeria is changing and changing for the best with enduring political sensibility. The change was buttressed during the recent transfer of power which was smooth without hiccups. When the late President Umaru Yar’dua passed away, the vice-President Goodluck Jonathan was swiftly sworn-in without much ado.

His Excellency President Goodluck Jonathan represented Nigeria at the summit in Canada. Since he took the helms of power he has demonstrated his capacity to lead his fellow country men and women in accordance to democratic principle. President Jonathan has been working speedily to resolve the issue of Niger Delta and has been making the requisite arrangements and plans to solve the problem of electric power shortage. Nigerians on the street are beginning to say good things about the new leader. The world leaders are receiving the Nigerian leader with open hands and respect as he moved forward in restoring the dignity of our country. All these developments can help to make Nigeria become an official member of G-20.

Nigeria has continued to be a stabilizing force in Africa and beyond. Nigeria with its strategic role in African Union is moving Africa forward with its leadership. When Liberia and Sierra Leone were raging with civil wars and uprising, Nigerian military contingency was a peace keeping force that restored stability in the troubled land. All over the world, Nigerian peace keepers can be found in troubled places of the world, propelling and protecting peace. Nigeria needs to be part of the G-20 in order to fully represent African financial and economic interest. Resources-rich Africa with a population of almost one billion has not been fully represented in the G-8 or G-20 of the world. Nigeria together with South Africa can best represent the interest of Africa. Therefore let‘s make it official and admit Nigeria to G-20.

Emeka Chiakwelu is the Principal Policy Strategist at Afripol Organization. Africa Political and Economic Strategic Center (Afripol) is foremost a public policy center whose fundamental objective is to broaden the parameters of public policy debates in Africa. To advocate, promote and encourage free enterprise, democracy, sustainable green environment, human rights, conflict resolutions, transparency and probity in Africa.