OBG talks to President Goodluck Ebele Jonathan

Interview: Goodluck Ebele Jonathan

What can the government do in order to tackle the challenge of youth unemployment?

GOODLUCK EBELE JONATHAN: Between 2007 and 2012 unemployment maintained an upward trend across several regions of the globe, including the so-called advanced economies, the Eurozone, the MENA region and Sub-Saharan Africa as a whole. In some of the aforementioned regions, economic crisis drove rising unemployment. However, in Nigeria and throughout much of the subcontinent, a different story emerged. In these countries robust economic growth has yet to translate into robust job creation. Nigeria’s unemployment challenge also differs due to the makeup of the population, which is overwhelmingly young. My administration is aware of the double-edged sword of a youth bulge and views this youth unemployment phenomenon with concern.

Our proposed interventions aim to ensure that job creation is able to keep pace with continued economic growth. Our approach is two-pronged in nature: creating jobs and also creating job creators. On the first point, we aim to create jobs directly through a greater focus on Nigeria’s labour-intensive industries. This means unlocking the potential in industries such as agriculture, manufacturing, housing, construction and sport by addressing the issues hindering stronger growth in these areas. Creating these opportunities is only half of the challenge; we must also make them attractive to our young people, as we are doing in agriculture by placing greater importance on mechanisation and technology.

Secondly, we aim not only to create jobs, but also to create job creators. By nurturing new business ventures, we are tapping into Nigeria’s distinctive entrepreneurial culture. Programmes at the various levels are creating platforms for young entrepreneurs through a combination of skills acquisition, finance and market access. Some of the most promising ventures include those entrepreneurship initiatives in the ICT sector. These initiatives leverage the skills of this youth segment, which is more amenable to technology.

How can project execution and the rollout of new reforms be improved in Nigeria?

JONATHAN: The “Transformation Agenda” is about taking measures now, in order to give our people a brighter future. This agenda, as well as the national reforms crucial to this agenda, is about creating jobs, creating wealth and ensuring a better deal for Nigerians.

Central to implementing this transformation is the creation of a politically stable environment in which economic development activities and programme implementation will flourish. To this end, we are strengthening our democratic institutions. In this democratic context, the Nigerian people are at the forefront of the demand for good governance, and issues of corruption are being vigorously tackled on various fronts. Prosecutions are being pursued in matters arising from fuel subsidy fraud, embezzlement of pension funds and other serious longstanding problems hindering needed reform in the country. I can assure all stakeholders in the Nigerian economy of accelerated and expanded action against all forms of corruption.

Secondly, an increase in the number and types of stakeholders has also boosted the implementation of critical reforms. The vested interest of private investors – both foreign and domestic – has added momentum to these initiatives. The Nigerian government has structured the reform process such that the interests of the investors align with that of the Nigerian population.

And finally, improved relations with the nation’s organised labour organisations are also critical to the project delivery and rollout of new reforms. Industrial activity can hinder programme implementation. My administration is committed to engaging organised labour, communicating the benefits of reform and safeguarding this group against any downsides. Trade disputes are inevitable in all social environments, but with commitment to patriotic dialogue, such disputes are resolved more easily. The labour movement has historically been a partner in national progress. We are working to ensure that this tradition is continued.

These three areas of focus are critical to the rollout of reforms in the country; there are many examples of effective programme implementation. In the power sector, the task of correction, construction and consolidation is on course, with the privatisation of our electricity generation and distribution companies. Our port reforms continue to build upon previous success in the concession of these ports into multiple terminals. And our railroads, major airports and federal roads nationwide are also being comprehensively rehabilitated. I am confident that Nigeria can successfully implement these projects with the support of the federal, state and local government as well as Nigerian citizens.

How can government reduce the fiscal burden of subsidies while protecting low-income Nigerians?

JONATHAN: We recognise that fiscal spending and policies must be developed holistically, taking both direct and indirect impacts on a range of stakeholders into account. The administration will continue to pursue policies and programmes that are in the overall interest of the majority of Nigerians and that will bring the greatest good to the greatest number of Nigerians.

On the topic of government subsidies, the fuel subsidy represents the greatest fiscal burden, totalling approximately N1trn ($6.3bn), or about 20% of the national budget. The fuel subsidy disproportionately benefits wealthier Nigerians who spend more on fuel consumption, and this fiscal spending crowds out development spending which would benefit a larger proportion of society. We have already seen benefits from the partial removal of the fuel subsidy in 2012, with the savings channelled into Nigeria’s SURE-P fund, which in turn allocates this money to social safety net schemes, maternal and child health care, youth development and vocational training.

However, we also recognise the need to properly communicate the rationale behind any drastic change, including any proposal for subsidy removals. In the interest of social harmony the administration will not embark on any such programme without extensive consultations and engagements across various segments, interests and stakeholders.

Beyond police and military action, how can Nigeria successfully address its security challenges?

JONATHAN: As a government we have decisively dealt with security challenges, ranging from militancy in the oil-producing areas to kidnapping and cyber crime. In the past year, we have seen a significant escalation in instability in some parts of the country. The activities of insurgents and terrorists have caused fear among our citizens and a near-breakdown of law and order in parts of the country, especially the north. We have taken robust steps to unravel and address the root causes of these crises and to proffer solutions that extend beyond police and military action. Previously, we adopted a multi-track approach to the resolution of this problem through actions which included persuasion, dialogue and widespread consultation with the political, religious and community leaders in the affected states. We have also promoted economic inclusion to ensure that youths are gainfully engaged and therefore not susceptible to negative social or religious manipulation.

While the efforts at persuasion, dialogue and economic inclusion will continue, my administration, like those before it, has a mandate to ensure the security and well-being of all our people and protect the sovereign integrity of our country. Therefore, we shall, on no account, shy away from doing whatever becomes necessary to provide the fullest possible security for the citizens of this country in any part of the country they choose to reside. While we have achieved gains, we have chosen to deploy more troops to Borno, Yobe and Adamawa states to take any necessary action to put an end to the instability plaguing these areas.

We have a duty to stand firm against those who threaten the sovereign integrity of the Nigerian state. We will ensure that the country’s diversity remains a source of national strength and not a weakness.