Year after year, Nigerian Economic Summit Group (NESG) recommends solutions to tackle economic challenges, even though a good number of such recommendations are jettisoned.
The annual summits were planted in February 1993 by Nigeria’s leading lights in the private sector — Nigerian Economic Summit Group (NESG). The 1990s heralded a pack-full of breathtaking global economic events. And, Nigeria, a leading oil and gas producer and the biggest and largest nation in African region was a factor in world’s economic equation of 90s.
At the NES’ maiden edition of February 1993, national leaders explored the 1992 — 2020 global scenarios and defined principles for building a competitive economy in Nigeria. Delegates to the first NES gathering dissected Nigeria’s economic prognosis amidst challenges and opportunities under a banner of discourse themed: ‘New Frontiers.’ That sublime take off in 1993 was the springboard for subsequent yearly episode.
The summit has held 27 times. Works have gone far into hosting NES 28th edition this October 2022. The largest economic dialogue gathering of the nation’s eggheads from the private and public sectors, NES has become a reservoir of knowledge inputs remedying protracted challenges that beset the economy.
Year after year, NES dissects problems, obstacles inhibiting or likely to constraint economic growth and recommend set of solutions. The three-day event is laced with several syndicate sessions that dissect various socio – economic issues. It has a central topic whose theme revolves around pertinent economic issues of the time.
NESG as economy compass
NESG is a private sector-led think-tank and policy advocacy group.
A non-profit, non-partisan and apolitical body set up purposefully and specifically to promote sustainable growth and the development of the Nigerian economy. The annual summit has become Nigeria’s version of the World Economic Forum (WEF).
The objectives of the NESG include, building a first-class research institution to help support stakeholders in the execution of policies, articulate programmes and strategies in response to any emerging trends in national and world economy and having a clear economic action agenda. In its over two decades of existence, NESG remains formidable platform for dialoguing pertinent issues plaguing economy amongst members of the private sector and representatives of government. It’s a platform of interface between private and public sectors.
The Nigerian Economic Summit Group (NESG) has organised 27 editions of NES spanning 28 years. Every edition is crafted to solve pertinent economic challenge of the moment. Every NES treats different economic issues germane to the time.
Amongst first leading members of NESG group were Pascal Dozie, first Chairman of the NESG), Chief Phillip Asiodu (NESG Board of Patrons), Mohammed Hayatudeen (former NESG Chairman), Usman Samsudeen (Board of Patrons), Ahmed Joda (NESG Board of Patrons), Joseph Sanusi (former Governor of the Central Bank of Nigeria, Dick Kramer (former Vice-Chairman of the NESG), Bunmi Oni, Dotun Sulaiman, Faisal Al-Kalli, Odinka Kalu, Chris Eze, Brain Andersen, Felix Ohiwerei and Ernest Shonekan.
These gentlemen from diverse backgrounds used NESG platform for dialogue, reached a consensus and present recommendations to the government on way forward. The Group is currently led by Mr, Asue Ighodalo as Chairman.
Over the years, NES summits had provided recommendations, suggestion to government on crucial issues affecting the economy. NESG provides evidence-based analysis on various economic issues. Since its inception in 1993, the Group has been engaging the government- past and present. Some of its recommendations were adopted by the government in her policy formulation.
Majority jettisoned and not adhered to. In October 2015, shortly after ascension of the current administration, the NESG in its 21st Nigerian Economic Summit (NES), declared that “Nigeria’s remarkable growth performance in the last decade has not translated into shared prosperity for average.
“Symptoms include high youth unemployment, high poverty incidence, declining crude oil price in the international market, the foreign-exchange crisis, and significant capital outflows.” Under the theme “Tough Choices: Achieving Competitiveness, Inclusive Growth and Sustainability,” the 21st NES in 2015 discussed and distilled issues on how to leverage Nigeria’s competitive advantage; reinvent public institutions in Nigeria; make SMEs strive, mainstream the social inclusion agenda and map out skills and innovation to boost productivity.
The NESG proposed three scenarios built by modelling the outcome of varying assumptions around reforms on the input variables — The Base, Moderate and Optimistic Scenarios. It warned government against the base scenario, which was adopting the status quo. “If adopted, the economy may go into recession,” NESG said in its recommendation. A few months later, Nigeria went into recession in the second quarter of 2016.
The 22nd NES had the theme “made-in-Nigeria.” It focused on the need to revitalize the economy through strategies that promote inclusive growth and higher levels of broad-based production and consumption. Over the years, NESG has anchored solutionist conversations on “opportunities, productivity & employment: actualising the Economic Recovery and Growth Plan” and “Poverty to Prosperity: making governance and institutions work,” which guided thematic discussions at the 23rd and 24th Nigerian Economic Summits.
With 2023 general elections gathering momentum, NESG listed social-economic priority areas, which should engage next coming government. Given a plethora of economic challenges assailing Nigeria, which include but not limited to poor economic growth, collapse manufacturing sector; joblessness; mind boggling corruption and rising insecurity, NESG, at one of its recent public dialogues in Abuja, said Nigerians had a duty to elect fit and proper persons in coming general elections across boards.
NESG Chairman, Ighodalo, listed the six critical economic challenges facing the country, which he said incoming leaders should have formidable capacity to tackle.
These challenges, according to the NESG chairman, are non-inclusive economic growth, macroeconomic instability, infrastructure deficit, human capital deficit and skills gap, national insecurity, and weak economic competitiveness.
On challenge of non-inclusive economic growth, which manifests in high rate of joblessness and poverty, he noted that, the precarious the unemployment situation derives from the low productivity of employment elastic sectors (Agriculture, Manufacturing, Construction and Trade).
He said: “Therefore, unless the critical binding growth constraints facing these sectors are addressed, their capacity to create more job opportunities and decent employment will weaken. “Secondly, macroeconomic instability is characterised by high inflation, volatile exchange rates; weak external reserve; rising public debts, deteriorating trade balance and the misalignment between the Monetary Policy Rate and other interest rates.
These unfavorable macroeconomic conditions constitute a disincentive to investors.” Thirdly, he said that “the infrastructure deficit is highlighted, with Nigeria ranking 24 out of fifty-four (54) countries covered in the African Development Bank (AfDB) infrastructure index report 2020” Again, he listed human capital deficit and skills gap which he said was reflected in Nigeria’s low Human Capital Index (HCI) and Human Development index (HDI).
“Over the years, this mediocre performance in human development indices could be attributed to inadequate funding for social sectors (education and health sectors) and limited capacity to harness human capital potential” “National insecurity is at the heart of recent socio-economic issues in Nigeria. If unchecked, the recurrence of community and personal insecurity would continue to threaten macroeconomic stability in Nigeria,” he said, adding that Nigeria’s weak economic competitiveness remains a crucial concern for investors. “Businesses in Nigeria face obstacles that threaten their survival and expansion,” he said.
Last line
As NESG prepares for NES 23 theme: “2023 and Beyond: Priorities for Shared Prosperity,” the summit’s recommendations, if faithfully implemented, will navigate the nation’s economy from current doldrum to prosperity.
