NATIONAL ECONOMY FIRST

An the Opening of Ninth Nigerian Economic Summit

Abuja, 16 October, 2002

It is my pleasure to welcome you all to the annual Nigerian Economic Summit, the fourth since the inception of this Administration in 1999, and the ninth since the idea was conceptualized as an annual event, to bring together experts from both the public and private sectors of the economy for dialogue on how to develop our economy.

I am particularly impressed with the theme of this year’s Summit which is “Nigeria: Putting the Economy First”. The theme could not have come at a better time, as it vividly reflects the current policy thrust of this Administration.

Let me say that I broadly share the objectives of this Summit, particularly the growth drives that have been put forward by the organising committee, with whom I met yesterday. I would however like to suggest that in addition to those growth drives, we must relentlessly pursue what has now become known as the Obasanjo’s five and a half tracks of economic development. They are: oil, gas, agricultural and food production, manufacturing, solid minerals and tourism.

I am pleased to note that both the private and public sectors are in agreement on the need to accelerate economic growth and development, thereby putting the national economy first. I do hope that we continue to sustain this understanding, and realize the Nigeria of our dream. I want to believe that at the end of our deliberations at the various workgroups, we would have identified and defined the strategies necessary for the sustainable growth and development of our economy. In doing this, we would have also defined the various economic priorities necessary for achieving our results.

In addition, let us not lose sight of the fact that this Summit is expected to fashion out clear and sector focused strategies for achieving the targets set in the economic recovery program that this Administration is unveiling today. I trust that you will develop an action plan and a time frame for implementation, monitoring and evaluation of these strategies. This is where I expect all Federal Ministers, Permanent Secretaries and Chief Executives of Government parastatals, to participate effectively at the discussions of the various workgroups so as to enhance the quality of the deliberations.

At an occasion like this, I cannot but mention some of the indications of progress made since we assumed leadership of this country in mid 1999. On the whole, I am pleased to report that our economy is on course, there are clear signs of results that deserve to be described as remarkable.

We see power supply as a cornerstone for adequately engaging the private sector in our efforts to rebuild this economy. In regard to this, we are determined to steadily increase electricity supply to support industrial activities in this country. Already, we have increased electricity generation by well over 160 per cent from about 1,500 MW in 1999, to about 4,000 MW in December 2001.

But we want the participation of all Nigerians if we are to optimize our efforts at rebuilding this economy. This is why this Administration is also committed to a faster pace of rural development. But to empower our people in the rural areas, we will have to ensure that they have access to some basic services and infrastructure. To this end, we are placing much attention on rural power supply, safe drinking water, and basic healthcare, to mention just some of the key areas.

This morning you will be able to see much of what we expect to do in the period ahead in the Framework for Economic Recovery and Growth Program that I am hereby unveiling.

As detailed in the framework, we will continue to pursue approaches that bring efficiency to economic performance. These will include good governance and steady privatization efforts, but, above all, the participation of both the private and public sectors of the economy. Indeed, we must get all hands on deck.

Personally, I see hope in our economic prospects. There is currently strong evidence that capacity utilization across the country is beginning to rise, whilst foreign direct investment in the economy has increased significantly. For instance, the Nigerian Investment Promotion Council (NIPC) has in the last three years, recorded the establishment of about 170 enterprises with foreign participation. These companies are reported to have generated about 643 million US dollars or 80 billion naira. At the same time, about 575 million US dollars of capital goods are recorded to have been imported for investment since 1999. Meanwhile, new investment opportunities are steadily developing.

We recently broke ground for a large methanol plant in Lekki, Lagos, and we are likely to see many new investments like this emerging in the coming months. In addition, we continue to receive support from our development partners in Official Development Assistance (ODA). We are thankful for the support that our partners, many of them represented here, have given, and continue to give us.

To assure the promise of prosperity, we must remain focused on our commitment to the Universal Basic Education (UBE) program, and the provision of basic healthcare, especially our fight to contain HIV/AIDS, malaria, and other communicable diseases.

Let me mention here, a recent international report that describes HIV/AIDS as a threat to global security. This report which mentions Nigeria’s vulnerability, raises alarm on the devastating effects that HIV has for the age group that is the most productive segment of the society, with such dangerous consequences as damage to economic and political institutions. We in Nigeria, have no choice but to regard the scourge of HIV/AIDS as threat to our national security, as well as a strategic issue. Our commitment to combating AIDS, thus transcends mere provision of basic health, and becomes a battle for the survival of our nation.

Distinguished participants, in spite of the remarkable progress, there is still a lot to be done, I will be the first to admit that I want to see more dividends of democracy across our land, from Badagry to Nguru and from Bomadi to Kaura-Namoda. I want to put a smile on the face of every Nigerian. We have to care and be courteous to one another. I am therefore enjoining you both operators in the public and private sectors, to rededicate yourselves to efforts at accelerating the country and our economy to levels of higher preeminence. This is why we must work hard to continue our leadership in Africa and the world through NEPAD, and other activities. Together, making strides, we will succeed.

Ladies and gentlemen, I am pleased to see so many enthusiastic faces here this afternoon, as I now formally declare open the Ninth Nigerian Economic Summit 2002. I wish you all fruitful and successful deliberations. I definitely look forward to the best from this year’s Summit.

I thank you.