Olayiwola Abdurrahman EEG/2014/087 Ecn 404 Assignment 1 Economics Department

OLAYIWOLA ABDURRAHMAN
EEG/2014/087
ECN 404 ASSIGNMENT 1
ECONOMICS DEPARTMENT
VISION 2010
Vision 2010 was a projected economic plan for Nigeria to improve
economically being a less developed country. It was an initiative of the late
General Sani Abacha in 1996, which he tied to change the narratives of
Nigeria’s socio-economic distress. After the death Gen. Abacha, Gen. Abubakar
also endorsed Vision 2010 as he worked in the formation of the plan.
The broad vision statement was that by 2010, Nigeria would have been
transformed into “a united, industrious, caring and God – fearing democratic
society, committed to making the basic needs of life affordable for everyone,
and creating Africa’s leading economy.”
Key Sectors and Objectives
Political System : Stable Democracy, by 1996, the military had ruled Nigeria
almost continuously for 27 out of 37 years since the country’s independence in
1960. It was envisaged that Nigeria would have a stable democracy within
characterized by comprehensive freedom for the citizens, rule of law, openness,
accountability, and orderly and predictable changes of government by 1998 of
which Democracy returned in 1999.
Economy : Decrease on oil dependency, It was envisaged that GDP growth
rising to an average of 10 per cent in 2010; oil stops being the mainstay of the
economy as over 90% of country’s export earnings where from oil and a less
than 5 per cent inflation; manufacturing accounting for 25 per cent of GDP; oil
contribution to GDP less than 20 per cent
Education : Better Educated Population, In 1996, only about 50 per cent of
children between the ages of 5 and 24 years were enrolled in primary, secondary
and tertiary educational institutions, with the enrolment ratio being highest at 88
per cent for primary school children. By the year 2010, primary school
enrolment should be almost 100 per cent and at least 26 per cent of the
government budget (at federal, state and local levels) should be devoted to
education.
Manufacturing : By the year 2010, manufacturing should contribute about 24
per cent to the GDP and should be a major employer of labour. To achieve this
goal, a competitive, market-oriented and private sector-driven strategy, backed
by very generous incentives and adequate infrastructure is required.
Unemployment : Nigeria should have attained virtual full employment of all
able-bodied persons by the year 2010.
Corruption : A history of military leaders have resulted in corrupton for
personal gain at the expense of the people. It was envisaged that by 2010
Nigeria should be a corruption-free society. The achievements of this objective,
however, will require imagination, dedication, resourcefulness, courage and
discipline of all Nigerians to fight the menace. The scourge has hardly abated in
the country. Execution of Vision 2010 ran into hitches, especially with the
sudden death of Gen. Abacha’s sudden death in 1998.
Poverty Alleviation : By 1996, 50 per cent of Nigerians were categorized as
poor. By the year 2010, it was envisaged that not more than 20 per cent of the
population should be categorized as poor. To achieve this, Nigeria’s annual
GDP growth rate over the Vision period should be at least 7 per cent, whilst the
population growth rate should not exceed 2 per cent per annum. The poverty
index as yet to improve.
Value System : By the year 2010, it was envisaged that the Nigerian peoples
would have re-discovered themselves and reverted to being God-conscious and
God-fearing, sincere, honest, accountable in their dealings with public trust, and
proud of their country and heritage.
Possible Solutions to Achieve the Vision
Institute and maintain democratic elections in the Fourth Republic. Nigeria has
a history of military dictatorships and coup d'états ending the short-lived
republics.
Increase in private sector to enhance competition.
Money created should allow for infrastructure to be rebuilt.
Increased female access to education and job opportunity should raise literacy
and equal gender rights.
Devote over one-quarter of the government's budget to education.
If better education is promoted, work force can provide for more labor. Criminal
activity and violence have resulted from a lack of youth education. New
scientific and medicinal advancements can be made with better education
systems.
NATIONAL ECONOMIC EMPOWERMENT AND DEVELOPMENT

STRATEGY ( NEEDS)
It is a medium-term strategy (2003- 07) but which derives from the country’s
long-term goals of poverty reduction, wealth creation, employment generation
and value re-orientation. NEEDS is a nationally coordinated framework of
action in close collaboration with the State and Local governments (with their
State Economic Empowerment and Development Strategy, SEEDS) and other
stakeholders and build a solid foundation for the attainment of Nigeria’s long-
term vision of becoming the largest and strongest African economy and a key
player in the world economy. We can therefore attain NEEDS as a strategy to
attain the long-term goal of Vision 2010. NEEDS builds on the progress made
during the transitional phase of the new democratic dispensation (1999—2003)
and it’s a response to the challenges of underdevelopment.
Key Sectors and Objectives
NEEDS rests on four key strategies: reforming the way government works and
its institutions; growing the private sector; implementing a social charter for the
people; and re-orientation of the people with an enduring African value system.
Reforming Government and Institutions: The goal is to restructure, right-
size, re-professionalize and strengthen government and public institutions to
deliver effective services to the people. It also aims to eliminate waste and
inefficiency, and free up resources for investment in infrastructure and social
services by Government. A key aspect of the institutional reforms is to fight
corruption, ensure greater transparency, promote rule of law and stricter
enforcement of contracts. An explicit Service Delivery Programme to re-
orientate government agencies towards effective delivery of services to the
people is being introduced in government for the first time. In a summary, the
goal is to make government and public institutions serve the people: to make
government play a developmental role rather than a haven for corruption and
rent-seeking. Part of the reforms at this level is to ensure a predictable and
sustainable macroeconomic framework, especially through a sustainable fiscal
policy framework.
Public Sector Reforms
Privatization/Liberalization
Governance, Transparency and Anti-Corruption
Service Delivery
Growing the private sector : NEEDS is a development strategy anchored on
the private sector as the engine of growth--- for wealth creation, employment
generation and poverty reduction. The government is the enabler, the facilitator,
and the regulator. The private sector is the executor, the direct investor and
manager of businesses. The key elements of this strategy include the renewed
privatization, de-regulation and liberalization programme (to shrink the domain
of the public sector and buoy up the private sector); infrastructure development
especially electricity and transport; explicit sectoral strategies for agriculture,
industry/SMEs; services (especially tourism, art and culture, and information/
communication technology), oil and gas, and solid minerals. Other elements of
this agenda include the mobilization of long-term capital for investment;
appropriate regulatory framework; a coherent and consistent trade policy and
regional/global integration regime; and specific interventions to encourage the
development of some sectors.
Security & Rule of Law
Infrastructure
Finance
Sectoral Strategies
Privatization and liberalization
Trade, Regional Integration
Implementing a social charter: NEEDS is about people: it is about their
welfare, their health, education, employment, poverty-reduction, empowerment,
security and participation. This is the overarching ultimate goal of NEEDS.
With about 50 percent of the population as children, education is seen under
NEEDS as the most important bridge to the future and a powerful instrument of
empowerment. In collaboration with the States (under SEEDS) and local
governments, an integrated rural development programme is a major strategy to
stem the rural-urban migration. Another key strategy of the social charter is
inclusiveness and empowerment. This is not just on the economic front, but
deliberate programmes to give voice to the weak and the vulnerable groups
through increased participation in decision-making and implementation, and
laws and programmes to empower women, children, the handicapped, and the
elderly. For example, NEEDS aims for a minimum of 30 percent representation
for women in all aspects of national life wherever feasible.
Health
Education
Integrated Rural Development
Housing Development
Employment & Youth Development
Safety Nets
Gender and Geopolitical Balance
Value Re-Orientation: The key message of the NEEDS is that ‘it is not
business as usual’. The privatization programme is designed to shrink the
domain of the state and hence the pie of distributable rents which have been the
haven of public sector corruption and inefficiency. The anti-corruption
measures, fight against the advance fee fraudsters, and strive towards greater
transparency in public and private sector financial transactions will help to
ensure accountability, and send the message that those who make money
through illegal and illegitimate means have no hiding place. Part of the reform
agenda is to ensure that hard work is rewarded and that corruption and rent-
seeking are punished. The people will be empowered to hold public officials
accountable through some Bill of Rights (especially the Right to Information
Act).
VISION 20:2020
The Nigeria Vision 20:2020 is Nigeria’s long-term development goal designed
to propel the county to the league of the top 20 economies of the world by 2020.
“By 2020, Nigeria will have a large, strong, diversified, sustainable and
competitive economy that effectively harnesses the talents and energies of its
people and responsibly exploits its natural endowments to guarantee a high
standard of living and quality of life to its citizens”.
Challenges aimed to be solved by Vision 202020
Vision 20:2020 is important for the following reasons:
• Need for Nigeria to plan development on a long-term basis in order to achieve
structural transformation;
• Need to reduce the country’s overdependence on oil;
• Need to effectively transform the lives of Nigerians in terms of significant
improvements in their standards of living; and
• Need for the country take its rightful position among the nations of the world
The 20:2020 offers strategies towards realizing Nigeria’s potentials and her
emergence as one of the 20 leading global economies in the world by 2020. The
specific actions to be taken in that direction include:
• Urgently and immediately address the most serious constraints to Nigeria’s
growth and competitiveness;
• Aggressively pursue a structural transformation of the economy from a mono-
product to a diversified and industrialized economy;
• Investing in human capital to transform the Nigerian people into active agents
for growth and national development;
• Investing in infrastructure to create an enabling environment for growth,
industrial competitiveness and sustainable development;
Domestic and External Constraints to Growth and Development in Nigeria
 Poor and decaying infrastructure
 Epileptic power supply
 Weak fiscal and monetary policy co-ordination
 Fiscal dominance and its implications for inflation and private sector
financing
 Pervasive rent-seeking behaviour by private and public agents, including
corruption
 Weak institutions and regulatory deficit
 Policy reversals and lack of follow-through
 Inordinate dependence on the oil sector for government revenue/expenditure
 Disconnect between the financial sector and the real sector
 High population growth which places undue stress on basic life- sustaining
resources and eventually results in diminished well-being and quality of life.
 Insecurity of lives and property
 Threats of climate change, especially in relation to food production
 Vulnerabilities in the global economic environment, in particular, the global
economic crisis and disturbances in the international oil market
Macro-economic Strategies and Policy Thrust to achieve the 20: 2020

The management of the macro-economy over the medium-term will focus on
restoring and maintaining macroeconomic stability in order to position the
economy on a sustainable growth path. The specific macro strategies include:
− Achieving double-digit economic growth rates, single-digit inflation, stable
exchange rate and investment friendly interest rates;
− Achieving significant progress in economic diversification;
− Stimulating the manufacturing sector and strengthening its linkage to
agriculture, oil and gas sectors, etc;
− Raising the relative competitiveness of the real sector;
− Deepening the financial sector and sustaining its stability to finance growth;
− Encouraging massive investments in infrastructure and human capital and
creating an enabling environment for domestic and foreign private investment;
and
− Implementing appropriate fiscal, monetary, trade and debt management
policies

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OLAYIWOLA ABDURRAHMAN

NATIONAL ECONOMIC EMPOWERMENT AND DEVELOPMENT

Macro-economic Strategies and Policy Thrust to achieve the 20: 2020

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