Presidency Hails International Finance Experts Commendation Of Transformation Agenda; Power, Agric, Housing Receive Financial Boost
The latest rating of the Nigerian economy by Global Rating Agency, FITCH, which acknowledged the landmark reforms being undertaken by President Goodluck Jonathan administration in the electricity and Agricultural sector as well as growing investors’ confidence in the Nigerian economy is an attestation to the success story of the Presidents socio-economic blue print contained in the Transformation Agenda.
It is indeed gratifying that the respected rating agency acknowledged the robustness of Federal Government’s fiscal policies which has among others ensured that inflation rate declines to 8 percent (the lowest in 5 years) as well as ensured that Nigeria successfully avoids “exogenous shocks” which could have occurred as a result of severe flood in 2012 and various security challenges occasioned by insurgents activities in some parts on the North.
The Fitch report which is consistent with other Global Rating Agencies verdict on the Nigeria economy, also indicate that the non -oil sector is recording appreciable growth in line with the policy framework of the Transformation Agenda and that “Nigeria’s sovereign and overall external balance sheets, current account surplus, debt service ratio and external liquidity are all stronger than BB category Medians”.
The confidence expressed in the Nigerian economy is also attested to by the volume of investments coming into the country in the last two years especially in critical sectors of the economy. Nigerians will particularly note that the painstaking and transparent execution of critical components of the Power sector road map launched by President Goodluck Jonathan shortly on assumption of office has been commended by economic experts and analysts who described it as one of the largest singular privatization exercise in the world.
The 3.0 billion dollars privatization exercise in the power sector, which had suffered terrible hiccups in previous years, but which has now been successfully carried out by the Jonathan administration in line with best global practices and in a manner devoid of vested interests and official manipulations has effectively put Nigeria on a sure path to uninterrupted power supply. It has also attracted a guaranteed investment of over 4 billion dollars from the World Bank and other multilateral agencies.
It is significant to note the unprecedented growth in Foreign Direct Investments in the Agricultural sector (8 billion dollars); manufacturing (7.3 billion dollars); Housing (300 million dollars); Rail Transportation (over 4 billion dollars) as well as other sectoral growth are essential pivotal to creation of direct and indirect jobs for millions of Nigerian youths in due course.
The 300 dollars World Bank investment in the Housing sector is particularly significant in that it will boost the mortgage industry, create millions of jobs and provide long term loan to first time home owners in order to drastically reduce housing deficit in rural and urban areas in the country. The loan which is at zero percent and a 0.7 commitment charge has a 40 year repayment period and will definitely revolutionize the housing sector.
These are all clear indication that the Jonathan Presidency is moving the Nation towards sustainable development, economic growth and stability in line with the promises made to the electorate during the electioneering campaign.
Dr Doyin Okupe
Senior Special Assistant to the President on Public Affairs
