Lowering energy costs is key to enhancing Nigeria’s economic productivity, says Duke. Learn how this could impact growth and competitiveness.
Donald Duke, erstwhile Governor of Cross River State, has implored the Federal Government to curtail surging energy costs in order to enhance economic productivity.
On Friday, he appeared on Inside Sources with Laolu Akande – a socio-political program that is broadcasted on Channels Television.
Duke criticized President Bola Tinubu’s government for making a “fundamental mistake” in scrapping subsidies on both petrol and electricity within a similar time frame.
Our current treatment of our citizens cannot continue in the long run. We must examine all policies and prioritize the well-being of our people, rather than focusing solely on subsidies. Our main goal should be to increase productivity among individuals.
He said that lowering energy prices and increasing people’s productivity can further boost the economy.
He stated that Nigeria’s inflation is influenced by four main factors: exorbitant energy expenses, excessively inflated contracts, unequal distribution of wealth and elevated interest rates.
The primary objective is to ensure that the economy functions in favor of the people. Ultimately, individuals show more concern towards sustenance than governance policies.
The primary duty of a government is to ensure its citizens’ productivity in an organized atmosphere. However, our country’s high unemployment ratio and dependence suggest that we are not achieving the desired levels of effectiveness.
According to Duke, a nation’s stability is contingent on productivity and the current administration ought to utilize every means possible towards industrialization in order to counter Nigeria’s dependence on imports.
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Domesticating oil imports can lead to a significant drop in the exchange rate, as it accounts for over 60% of our foreign exchange earnings.
“We must go further and scrutinize our imports. Dependence on imports is unacceptable for an economy that faces a yearly population increase of 230 million individuals. Our priority should be to build up a productive, manufacturing, agrarian economy to support our people’s needs – yet we are not doing so. We’re sacrificing the welfare of our citizens by importing everything.” The speaker asserted these points.
Multinational Departure
From May 1999 to May 2007, Duke served as the governor of South-South state. According to him, Nigeria’s economy has been severely affected by soaring energy prices and this has caused many global manufacturing firms to leave the country.
According to him, it would be harmful for local industries if oil and gas prices were evaluated on an international scale. Duke suggested that energy prices should instead cater specifically to domestic refineries and industries.
“Due to the cost of production and exchange rate, many companies are exiting Nigeria,” he stated.
Kimberly-Clark, the manufacturer of Huggies and Kotex diapers brands is among some companies that have left Nigeria due to its ongoing economic crisis. This situation was instigated by two government policies which are forex window unification and petrol subsidy removal.
Amongst others, Unilever, Sanofi-Aventi Nigeria, GlaxoSmithKline (GSK), and US-based Procter & Gamble (P&G) are some of the multinationals that withdrew from Nigeria within the past year.
The reasons cited by the companies are alike in that they include costly energy and devalued currency.
