Nigeria has good conditions to become a significant player on the field of global economy. New economic recovery and growth plan works with untapped over the years resources of the country. Let's see the main features of the new economic policy.
Current economic policy
The administration of Muhammadu Buhari has drawn out a new vector of planned economy. In the late 1960s, Nigeria made a shift from agriculture-oriented economy to gas and crude oil. Because of this shift, the economy was depended on oil prices. It was an unstable situation. And as a result, the economy was unprepared for the decline of oil prices on the market.
In recent years, the economy remains consumption driven, import-dependent and undiversified. The current government understands that the economic recession can remain on the same level if nothing is done to change the economic policy and the way of development. Let's see what is in perspective and what has already been done.
Economic recovery and growth plan Nigeria
The administration is working on economic recovery and growth plan for 2017 – 2020. The plan is designed to restore economic growth by means of wise use of resources.
Let's look at the basic steps of the new economic plan.
1. Restore growth
To solve this challenge the plan focuses on economic diversification and stabilisation. The administration plans to achieve macroeconomic stability by means of fiscal stimulus and improving the balance of external trades.
To accelerate economic growth, the policy will focus on the key sectors such as energy and agriculture, manufacturing. The important part of the plan is leveraging science and technology.
The development of these sectors increases investments and support of other sectors. As for macroeconomic conditions they can be improved by greater export orientation. Such approach can bring structural changes and create new workplaces. In accordance with the results of 2017, the government managed to achieve some growth in the economy through such actions.
2. Make investments in people
The main resource is people, so creating new workspaces, increasing social inclusion and social level is one of the most important tasks. It is important to provide support for most vulnerable and poorest members of society by means of new social programmes. Youth empowerment and job creation are a core part of the new economic plan. Furthermore, the plan encourages young people to be involved in construction and agriculture sectors.
The administration is investing more in human capital. The country needs a higher level of education and medicine. The basic education should be available for everyone.
3. Make the economy competitive on an international level
Nigeria’s economic requires agile, dynamic private sector that can respond to international opportunities. The new plan should eliminate such obstacles as the difficult business environment and poor or non-existent infrastructural facilities.
The growth plan pays much attention to infrastructure. Rail, roads, broadband networks these are important areas of development. The private sector in collaboration with the government is expected to play a significant role in providing critical infrastructure.
Today, there is a difficult environment for business in Nigeria. A new approach suggests more business-friendly environment and more business support by the government.
The development of the economy is impossible without digital-led growth. Therefore, the new economic plan assumes many projects for the development of information technology.
These are the main vectors of the economies development of the country for 2017-2020.
What has already been made?
The economic recovery and growth plan has already led to some notable results. The long-term plan is divided into a short-term plan which aims to restore macroeconomic stability, grow and diversify the economy, make the business environment more competitive, and improve the country’s governance and security.
One of the main achievements of this year is that Nigeria became more self-sufficient. Good results were shown by the agrarian industry - in food production, particularly in rice, rice yield has increased from 3.5 to 7.5 tonnes per hectare.
The macroeconomic environment has become more stable, small and medium scale enterprises can feel themselves more confidently. We also can see the ramping up of oil production. This year, Nigeria has stabilized its oil production. There is a big process of revamping local refineries.
We can see a noticeable increase in the amount of allocated money for the development of infrastructure. There are significant infrastructure changes in Lagos as one of the foremost tourism and investment destination in Africa.