ANN government will prioritise industrialisation. This is important, to creating decent tax-paying jobs and businesses; and achieving the “Nigerian Economy that Works for All”. ANN believes that the current global economic dynamics, provide the opportunity for Nigeria, to industrialise.
But, ANN also believes that, to Industrialise Nigeria, the institutions (MDAs) must become catalysts for growth. This means that, MDAs must identify emerging sectors and actively organise the various industrial sectors that they oversee into visible and accountable pipelines of co-production. This means that, MDAs should not just wait for sectors to slowly evolve, but must lead the industrialisation of Nigeria. This also means working closely with the Legislature, to regulate for industrial growth and productivity, by providing clarity and certainty, to local and international businesses and investors.
ANN has identified priority areas for MDAs, so that they can create the environment suitable for enterprise, working with the CBN and the Financial Services sector. This would stimulate growth in supply-side value chains responding to demand-side, to propel the Nigerian Economy.
ANN believes that innovative supply-side financing should be largely denominated in Nigeria Naira (except for the acquisition [with possible technology transfer complements] of machinery, equipment and vital inputs that are not currently made in Nigeria, and for which there is demonstrable potential for the exportation of finished made in Nigeria goods and services).
ANN believes in creative and responsible demand-side Nigeria Naira financing of short term non-secure credits (given consumer credit regulation and consumer rights protection). This would support and stimulate demand for made in Nigeria goods and services as a strategic move, to scale-up local production and manufacturing, and the benefits of related economies, improve quality and standards, and substitute imports, with potential for exports.
ANN also believes in creative demand-side Nigeria Naira financing of medium to long term secure credits, for the ownership of homes and other suitable assets (characterised by value chains mostly Nigeria Naira denominated; attached to a fixed address in Nigeria on national database; and for which asset transfer is overseen and organised in a visible, transparent and accountable manner to regulators and tax authorities).
ANN believes that, to effectively supply liquidity to the economy, all transactions on supply-side and demand-side, should be visible, transparent and accountable (to prevent any leakage into the ‘dark’ economy). This would enable the Legislature working with the Executive (and in liaison with the CBN), to be creative on tax policy (as part of strategic tax reforms considering rates and ease of assessments and payments). This is also mindful of the impact on fiscal and monetary policies; the rate of Nigeria Naira exchange; and the creation of tax-paying jobs.
ANN also believes that, if we do not bridge the infrastructure-gap, we cannot effectively support industrialisation and be competitive. This means that, Nigeria will not be able to produce its way to prosperity, and creating millions of tax-paying jobs for Nigerians. ANN believes in more creative ways of investing in infrastructure, to catalyse economic development and growth, to return on investment in the medium to long term.
Given the above background, conditions and responsibilities of the Legislature, MDAs and the CBN, the ANN Government Response to Industrialisation, will involve across-government and cross-sector working with all relevant stakeholders in Nigeria and international partners, to prioritise:
- Addressing constraints to creating the environment (Legislative, regulatory, statutory & tax, judicial, infrastructure, access to finance, skilled labour, etc.), for improving “ease of doing business”, to attract domestic and international investments.
- The launch of Regional (Provincial) Development Banks: one for each of the six geopolitical zones of Nigeria, as organs of the CBN, to catalyse economic growth and transform zones, into major hubs for:
- Agriculture and its value chains
- Transportation and its value chains
- Maritime and Energy and its value chains
- Technology and Innovation and its value chains
- Finance and Entertainment and its value chains
- Manufacturing and its value chains
- Regional Development Banks, would aggressively gather vital data and build databanks of credible evidence and actionable business intelligence, to inform private sector investments (seed/absorb Research & Development costs and recover costs from services and economic performance). Regional Development Banks, would organise each LGA, to feed data into State databases, and then to Regional Head Quarters of Development Bank and then, to the CBN.
- Regional Development Banks, would seek local and international partners, to gather demographic data, map natural resources of significant deposits and research into alternative uses that are important, to local and international economic value chains; facilitate and provide support for business cases; and access to right-financing models and complements, for businesses and investors.
- Regional Development Banks, would hasten the organisation of markets and may conditionally function as ‘buyer of last resort’, with its partners (maintaining strategic warehouses), to guarantee and intervene in markets: local and international supply chains/routes.
- Regional Development Banks, would stimulate and regulate the supply chain, ensure and enforce set standards for domestic and international markets; and facilitate regional exchanges.
- Regional Development Banks, would invest in Parks for Innovation, Science and Retail; and Warehousing of commodities.
- Regional Development Banks, would build Regional Economic Power Houses and Hubs, encouraging trading between states and regions.
- Launch Infrastructure Development Bank (National & Regional), conceived on business models that promote local infrastructure research and development; designs; and execution.