By Tobi Adebowale
Twitter and Instagram - @tobiBowale.
E-mail: tobi.adebowale@geplaw.com
We are at a crucial point in the life of our nation, collectively, and in our individual lives respectively. A major demography in Nigeria's 170 million population consists of youths which invariably implies that a discourse on charting a new course for Nigeria cannot be fairly had without considering the place of youths. I dare say that anyone planning a policy direction which does not take into consideration the roles youths are expected to play is engaging in a mere academic exercise, a futile one at best.
In talking about a new Nigeria however, we must caution ourselves as to the exact direction of our discourse. Nigeria, being a vast nation with diverse prospects and challenges cannot be discussed comprehensively in a sitting or at a single forum so to maximise our time, I will focus on addressing Nigeria's infrastructure challenge which undoubtedly holds the key to delivering the promise of a better Nigeria.
Young lawyers have a major role to play going forward in seeking a change in fortunes in the infrastructure space.
Infrastructural development is critical to the growth of the economy and the realization of any country’s potentials which may best be achieved through increased investment in production and trade. The World Bank has at different times stressed that every one percent of national revenue spent on infrastructure leads to a corresponding one percent growth in gross domestic product.
Nigeria needs to expand its infrastructure to meet the international benchmark for infrastructure stock as a percentage of GDP which is 70 percent from its current stand at 25 percent. In 2014, the federal government estimated that Nigeria needed to spend as much as $2.9 trillion over 30 (Thirty) years to close its infrastructure gap and meet the international benchmark for infrastructure stock. For the average Nigerian, that deficit expresses itself in the absence or inadequacy of basic infrastructure. Considering electricity for instance, Nigeria presently has an installed generation capacity of 13,000 MW while available generating capacity is about 6,803 MW due to constraints with gas supplies and other challenges. On August 10, 2017, Minister for Power, Works and Housing, Mr Babatunde Fashola SAN admitted that the available transmission infrastructure is able to wheel only about 6,700 MW while the amount of electricity that reaches the end users is further depleted due to load rejections by distribution companies.
Nigeria’s transportation sector does not fare any better. Works minister, Mr Fashola while speaking at the 2016 Nigerian Building and Road Research Institute (NBBRI) international conference stated that only 28,980km out of the 193,200km total length of roads in the country was paved. The abysmally low level of road construction leaves much to be desired as up to 90 percent of the internal and cross-border freight in Nigeria is done by road, according to the African Development Bank. Other aspects of the transportation sector such as aviation and maritime are similarly in dire need of investment to develop a befitting infrastructure.
The constraints to meeting Nigeria’s infrastructure needs have largely revolved around funding caused by budgetary constraints and inability to attract sufficient foreign direct investment. The 2017 Nigerian budget was N7.28trillion, of which the sum of N2,178trillion amounting to about 30 (Thirty) percent of the total budget was voted for capital expenditure, the first time capital expenditure would receive such allocation. However, in the impossible event that the government decides to spend the total sum earmarked for capital expenditure on road construction, the sum would be inadequate to meet the N3 trillion required to address Nigeria’s road infrastructure deficit, according to the Council for the Regulation of Engineering in Nigeria (COREN). Similarly, in the power sector where government presently handles the transmission segment of the power sector value chain, the capital expenditure provision for the Transmission Company of Nigeria (TCN) under the Multi-Year Tariff Order (MYTO)–2015 Financial Model (which indicates amounts that need to be spent) is N418.504bn but only N40bn has been earmarked for transmission projects under the 2017 budget.
One other challenge that confronts the Nigerian government is the decline in revenue following a significant drop in crude oil price, presently around $50 per barrel and occasional disruptions to oil production by restive youths in the Niger Delta region. Over the years, government has resorted to borrowing to address the infrastructure deficit and government officials have regularly claimed that the country’s debt to GDP ratio being low gives it more “head room to borrow.” Low revenues however imply Nigeria has a higher debt servicing to revenues ratio, which is estimated to stand at 33.6 per cent. What this means is that the country is spending approximately one third of its revenues in servicing its debt. A major portion of what ever is left is then spent on recurrent expenditure creating a huge gap in infrastructure finance.
To address each of these highlighted challenges, government needs to directly address certain issues while creating an enabling environment for the private sector to address others. But only a government of competent people can effectively play its role. This brings up our first duty: Organise to enthrone an effective government through election sensitisation and voting.
The second duty is stake holder engagement and stakeholders in the Nigerian entity include government, citizens, pressure groups, investors and others. Stakeholder engagement however requires knowledge so we all have a duty to learn all we can about the issues affecting Nigeria. Being knowledgeable about the issues helps us ask the right questions to promote accountability and good governance. By virtue of our training as lawyers, we are in a good position to lead the engagement process on behalf of the generality of others
Beyond stakeholder engagement, as these issues begin to be addressed, there will always be a demand for legal services on the side of investors, government and the people. Easy to decipher that government and investors will need contractual services but for the people, it may be in the form of dispute resolution. Whichever it is, we must be ready when the call is made. So, it's time to begin to deepen our knowledge of various transactions such as power, transportation and tourism among others.
As the new Nigeria similarly evolves, it will also be important for us to stand up to be counted when it matters most such as contesting elections. It will not be easy but the world is embracing disruption and we must all move fast along with the trend. Get online, build relationships across professional and social lines, contribute to the community and seek to leverage on the support of others through partnership. We will get there.
Photo credit: https://buzznigeria.com/beautiful-photos-lagos/
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