…tasks govt on revitalization of under-performing sectors
The Centre for the Promotion of Private Enterprise (CPPE), a leading private sector advocacy organization, has urged the National Bureau of Statistics (NBS) to do more in reporting the maritime sector’s performance in view of the importance of the nation’s gross domestic product (GDP) growth.
The Centre’s founder/CEO, Dr. Muda Yusuf, gave the advice in a note by the advocacy group on the agency’s latest report on the performance of the nation’s economy in the second quarter of this year.
According to the group, the data on the maritime sector reflecting its contribution to the GDP in the quarter under review does not appear to have accurately reflected the sector’s performance, hence the charge to the Bureau to do more in its data analysis of the sector.
The CPPE stated: “Maritime sector of the economy is a very important sector in the international trade process, playing a very critical role in our import and export trade. It generates appreciable revenue and creates a lot of jobs. It is very critical to the supply chain of the Nigerian economy.
“There is evidently a gross under-reporting of the activities of the maritime sector by the National Bureau of Statistics. For instance, in the Q2 GDP report, the maritime sector [water transport] was said to have contributed a mere 2.4 billion Naira to the GDP out of N45.5 trillion GDP for the quarter.
“This is a contribution of a mere 0.01%. In the first quarter of 2022, the NBS recorded 0% contribution of the sector to GDP. In the GDP numbers, water transport is the only proxy closest to maritime. But maritime sector activities are beyond water transportation.
“We, therefore, appeal to the National Bureau of Statistics to engage with stakeholders in the maritime sector to ensure a proper capturing of the activities of the sector and the contributions of the sector to the national economy. The GDP figures over the years have been grossly under reporting the contribution of maritime to the national economy. This remedy on data quality is critical for planning and investment”, Yusuf added.
On sectors that contracted during the quarter in review such as crude oil and gas, electricity and textiles sectors, the seasoned economist and former Director General of the Lagos Chamber of Commerce and Industry (LCCI), asked the government to address the recessionary trend in the sector through appropriate policy measures
For instance, he charged the government to address the challenges of the massive oil theft which is affecting the oil sector output while pointing out that the electricity sector reforms need a review to improve efficiency and productivity in the sector in orde to improve performance and attract more investment into the sectors.
In addition, Yusuf canvassed the need to put fiscal incentives in place to boost investment in renewable energy in line with the energy mix objective of government and also to decentralize the national grid for ease of management and efficiency. There should also be a deliberate policy to attract private investment in the electricity grid.
He also stressed the need for the government to ensure that all uniforms of security agencies and other government institutions are produced from local textile fabrics in order to revive the ailing textile sector.
Yusuf further advocated: “The rail system needs adequate security to rebound. Government needs to accelerate the security cover for the rail lines and the railway transportation system across the country.
“There should be an urgent engagement with investors in the auto assembly plants to identify the peculiar challenges facing them. But surely, better patronage of vehicles assembled in Nigeria would have a positive impact on the performance of these firms”, the CPPE boss added.
