Towards a new KPI for ministers

Time was when the Nigerian federation depended almost solely on oil revenues to finance government and provide key infrastructures for its citizens. Due to global over-production and supply and the resilience of shale gas producers in the United States, we are approaching a new normal of low oil prices and traditional oil-dependent economies are looking for ways to diversify their sources of revenues.

The Buhari administration, since coming to power in 2015, has talked so much about diversifying government’s revenues and ending the countries dependence on oil. However, going by revenue figures for the first five months of 2017, as provided by the Central Bank, oil revenues still remains the country’s dominant source of income as the country continues to fall short of its non-oil revenue targets.  For instance, Despite the huge decline in oil prices, oil revenue receipts for the five month period was N1.35 trillion while non-oil revenue receipts stood at N1.13 trillion, N220 billion or 16 percent less that oil revenue. Sadly, it is just half the size of the N2.2 trillion five-month target set by the government for non-oil revenue in 2017.

A much more sustainable solution, as experiences from many successful Asian and African countries have shown, is the attraction of Foreign Directive Investments (FDIs) into the country and harnessing them to the their development programmes. Singapore is a superb example here. With a meagre population of 1.6 million in 1960, the small, poor, and stagnant former British crown colony, with no natural resources except a natural deep harbour, succeeded, through enactment of sensible and effective policies, in attracting desirable foreign investments, which helped to transform the country over three decades and had transported it from the third world to the first.

One of the keys to this transformation was not just in the appointment of highly educated, focused and efficient ministers, but also in the issuance of an otherwise tough order by Lee Kuan Yew that all ministers must be able to attract certain levels of FDIs to their sectors. What looked like an impossible task soon became a competition as ministers jostled to attract the highest number of FDIs to the country. Aided by very attractive incentives and a considerable ease of doing business, the country witnessed a huge surge in inflow of foreign capital and investments, leading to its rating in 1984 and 85 by the Business Environment Risk Information (BERI) service as one of the safest places for foreign investments.  Thus, despite its unique size and history, other developing countries now look up to Singapore for lessons in how to attract desirable investments and how to make them similarly conducive to their own development needs.

Nigeria is in particular need of the Singaporean lesson. Rather than ministerial appointments being mere “job for the boys [and girls]” and a means of elite political settlement, they could be made marketers of the country and appraised on their abilities to attract both local and foreign direct investments and capitals that are now necessary for economic growth and development in any developing society. Then, Nigerians will no longer complain about the large number of ministers because they won’t be drains on the country’s resources but catalysts of economic growth and development.

We must join the league of African countries who have positioned themselves as favourable destinations of FDIs. Mozambique, for instance, a country ravaged by war some decades ago, is rapidly transforming its fortunes, posting average economic growth rate of 7 percent for the past decade principally due to increased FDI, which peaked at 26.13 percent of GDP in 2015. Nigeria cannot afford to be left behind. We must use the 36 minister foisted on us by the constitution to generate wealth and develop the country!