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Utomi, in UK, unfolds economic plans as president
IN what may be a push for issues-based campaigns for the 2007 elections, social commentator and presidential aspirant, Prof. Pat Utomi, yesterday unfolded his ideas of what should be the thrust of the Nigerian economy.
Utomi, who spoke about his presidential ambition in a 90-minute live interactive session on BEN TV in London, argued that there was no reason the government should spend more than $18 per barrel fixed in its yearly budget provisions.
If the price of oil goes higher than $18 per barrel, as it is at the moment, Utomi said, the excess revenue should go to a stabilisation account. Anything above $25 per barrel should be kept in a future fund for coming generations, he added.
The former head of the Lagos Business School warned government not to be reckless with the excess proceeds of oil, saying that this would "create structural loopholes," once the boom is over and the price stabilises.
Utomi said: "For many years, I have argued that part of the problems with Nigeria is the way we utilise the revenue that accrues from crude oil, and the former finance minister said that they were struggling to get that done. I argued that Nigeria should not use for its budget proposals more than $18 a barrel and that anything above $18 up to $25 a barrel should go into what we call a stabilisation account."
He spoke further: "This is because traditionally, oil price fluctuates wildly and when the prices go down Nigeria goes into serious problem, leading to abandoned projects and then we have this Dutch Disease that economists talk about.
" It is my view that anything above $25 should go to a future fund strictly to be invested either abroad or in infrastructure to be used for all generations, because natural resources belong to all generations including those unborn. It is the moral law in economics that I know of. You do not have a right to consume what belongs to all generations."
Utomi, who has taken leave away from the Business School to pursue his ambition, cited Botswana, where the government has a "futures account" for the proceeds of its diamond.
He said: "If you look at how Botswana has managed their diamonds well, then you will see how they are far superior to us."
Botswana, according to him, " is one of the better managed economies in Africa, because they too have a future."
Utomi warned against reckless spending of oil proceeds, disclosing that " it will create more problems for the nation tomorrow." He added: "This part of these increases in crude oil will create structural distortions and prevent other parts of the economy that are critical for balanced development, from taking place."
The renowned economist blamed those in government for not knowing how to manage the increase in oil prices and for killing other sectors of the economy. He said: "It was when the oil prices went up in the past that our exchange rate appreciated the way it appreciated, and we killed the agricultural sector, even manufacturing."
He noted that in the past, 13 per cent of Nigeria's Gross Domestic Product (GDP) came coming from the manufacturing sector, that today the figure is not more than four per cent.
Sadly, though this lopsided development "is affecting jobs creation in Nigeria," he said, unknown to many, " an economy that cannot create jobs is setting itself up for a real explosion."
Utomi said that there is need for a paradigm shift in Nigeria, warning that the signs were foreboding for the country.
"In 10 more years, with business as usual, there won't be a Nigeria. People are fed up with the way things are being run in the country and unless a new roadmap is mapped out, we will just wake up one day and find out that Nigeria has become Somalia and is in a descent into anarchy," he warned.
He listed four qualities that anyone hoping to succeed President Obasanjo must have: "He must be a man of character, competent, committed and compassionate."
Utomi said his decision to come out in search of the people's mandate "is to show people the meaning of sacrifice." Nigeria, he said, needs those who would "talk the talk and walk the walk".
He added: " I will live by what I preach, and the next day after my election, I will declare a list of my assets and how they were acquired." On the expiration of his tenure, "I will do the same thing," he pledged.
He criticised the Obasanjo regime for "wasting public money acquiring jets when it is far cheaper to use alternative means of travel."
He said: "I will sell almost all of what is in the presidential fleet. All those aeroplanes, I will sell them. I don't see why as President of Nigeria, I can't get on commercial planes."
Although, he admitted that "maybe we need one or two presidential aircraft, but how does that justify a system where the presidential fleet is bigger than most airlines in Nigeria?"
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