BELLO: WITH CORONAVIRUS DISRUPTIONS, ECONOMIC DIVERSIFICATION CRUCIAL
economy has taught us one lesson and that lesson is diversification. For example, we have to now have disruption in volatility of oil prices and so many other things. This will mean that certain very important infrastructure could have delay in delivery. Like the Ibadan-Lagos rail which is supposed to be delivered in April, now we have to push it to June. Also, the Ibadan Dry Port could be delayed. But what is more important is the production. We need to diversify the economy and so we need to think of exports. Export is very important to the life of this country, so that we can insulate ourselves from the vagaries of the external shocks. And that is why it is commendable what the central bank is doing. With the dynamics in the global economy, the interventions by the central bank to tackle the headwinds and macroeconomic interventions is quite commendable. And let me use this opportunity to also commend another sector, the health sector, that have been able to contain this virus in Nigeria. It is quite commendable and comforting. The Minister of Health, the Commissioners in the states and other stakeholders at the airports and other ports of entry. So, this means Nigeria has strong institutions and we should also leverage on that and let the people know that this is what is happening.
Let talk about the recent news that Nigeria experienced a trade deficit in the fourth quarter in 2019. What is your take on this, what kind of pressure is it putting on the ports as well?
The trade deficit has to do with our ability to produce. Manufacturing for example is very important to an economy. If we have more imports than export that means, we will have trade deficit. We have large import bills and we need to look at even our infrastructure. We have to look at our economy and make sure that we focus it on processed export. Nigeria’s ginger for example, is the best in the world and so many things here as well. For instance, beans from Nigeria is the best in the world but we need to process it and we need to export it. Now, the logistic chain has to be improved, there must be access to finance by exporters. There must be access to international market and a deliberate policy by Nigeria to make sure that we have more export than import. So, if we have that, our trade will be almost balanced, which is a balanced terms of trade, which is also very important for any country. This is important, especially now that our population is what we rely on to take our domestic production. But things are pointing to the fact that a country must export or perish and I think Nigeria should have a deliberate policy to look at that trade imbalance and correct, one of the things, which is production, manufacturing and export.
In terms of the Cabotage vessel financing fund, the Minister of Transport promised that the disbursement will soon commence and a committee has been set up to work out how it should be disbursed. Can you give us an update on that?
The committee is working with stakeholders, it is very important to understand again international trade and it is important to understand our economy. We don’t just buy ships for buying sake, we buy to tailor the modern trade route. The commodities we are dealing with, what is our international advantages in trade? So the stakeholders are sensitised on the way to go about it. Many people will think it is a government largesse for people to come and take. No, this is also a direct economic intervention. Cabotage means places reserved for indigenous ship owners or ship operators. It is a protectionist idea, but we have to do that. It is also done in America and other countries and trading within the brown waters must be indigenous ships. The ship must be manufactured in Nigeria, it must be owned by a Nigerian, and they must be owned or run by Nigeria. It is a beautiful concept but we have to give time limit and phase out to see how we could achieve that. But, that is the reality and it is also an intervention. It has to be carefully done as an economic intervention and not a political, one.
As the National Centre for Disease Control (NCDC) set up a quarantine centers at the ports, are there any preparations or things in place to test people at the ports that come in contact with goods that are coming in that may have been infected by COVID-19?
The Nigerian Ports Authority working with the authorities in the health sector have already taken measures to contain the spread at the ports. That is what we are doing at our various points of disembarkation at the sea ports, at the airport and even at the land borders. We go through all the test to see those who are likely to be affected. So, Nigeria is actually a country of strong institutions, and that we had only two cases was also an indication to show how serious we are. The health sector is doing a lot to see that these things are contained. What we are having is a pandemic as you said, which means with 180 countries, we see a whole country lockdown, Italy, and what is happening in the United States, sport activities, economic activities, social activities, markets shut. So, Nigeria is not living in isolation, Nigeria is working hard to see that these things are also done in accordance with international best practices. And that has given us comfort, that has given the internal economy as well, some comfort. We have not seen massive disruptions of our sporting events and other things. So these are temporary things, the whole coronavirus thing is going to be temporary.