Re: The dilemma of choice as Kongi paints GMB and GEJ black

'My post concerning 'The dilemma of choice as Kongi paints GMB and GEJ black', has generated some reactions from you M (name removed for sake of this forum). That is why I have decided to invite you to the ring this time rather than fight outside the ring. The post in itself was inspired by your post from Osun defender on corruption allegation against GMB credited to Wole Soyinka. You have reacted by quoting another source (Pointblank) and I will sure give you credit for that because I respect the voice of minority (I am referring to the fact that Pointblank and Osun defender are not leading authorities in news and media reporting)'

In your summation on your wall, you grudgingly agreed that GEJ has done little concerning corruption while you believed he has done well for the economy. I decided to invite you to this arena based on that.

My Points which I want you to react to are:

What GEJ has done to the economy is to scratch the economy on the surface. This is because in any free economy, government is not the major creator of employment but you claimed GEJ has created employment through some programs like SURE-P and direct grant to SME. How many jobs have government created- I am not sure it is more than 50,000 and I am not sure that can cope with the current rate of graduate turnout and even unemployment rate. The government’s capacity to create job in a free economy is restricted because such job creation is to act as regulator and any job creation after that is unsustainable (it leads to increase in overhead cost and recurrent expenditure) which can be countered during economic downturn with austerity measures. The role of government in job creation in a free economy is to stimulate the economy and it does not take a guru to figure that out. These are some of what government does to stimulate the economy and create jobs.

Number one is security

A secured environment makes business thrive; it encourages investors to come in and encourages local businesses to grow. Do you know how many local businesses have failed because of Boko Haram? Do you know what damage has been done to the supply chain of kolanut, palm oil, cassava, groundnut etc. those food products and cash crops that moves from North to South and Vice Versa. Now imagine the job lose in agricultural sector and other affiliate sectors. How many multinational companies have entered Nigeria in GEJ’s era or how many local companies have become big conglomerate. Do you know the number of Jobs created by MTN, GLO, Etisalat etc. directly and indirectly? That is what it means to stimulate the economy; in few years that industry created jobs that the federal government cannot create. They were given the environment to operate.

Number two is corruption

You quoted Fela chanting corruption of $2.8billion against GMB unfortunately Fela is not alive to sing against GEJ. However that is not an excuse for that because I will corroborate your statement. There is one man that has criticised GMB on the money you mentioned and it is no other person than Professor Wole Soyinka. However Professor Wole Soyinka has also said that GEJ is wantonly corrupt. Meaning he could not even place figure on GEJ’s corruption? Now let us go to logic; if one is left with no choice of a leader than to choose between GMB and GEJ and assuming all those allegations are true, who will you go for? Moving away from the political angle, the fight against or intolerance of corruption show foreign investors how sincere a government is in allowing businesses thrive and it is a key factor that ensures stability of government policies even in period of economic downturn. One key factor that kills deregulation is corruption. There is no trust in the government that is why people are shouting on the government; economic downturn happens every time and in such a time like this we expect that it was the president that will present the budget to the house. Alas no; it is Okonjo Iweala. This is the third time in a row the president is doing that and it sends a wrong vibe to the people. Even the much criticised Putin of Russian presented the budget to the house and in such critical time it is not a duty to be delegated. That is leadership- I don’t see it in GEJ. Nigeria and Russia have the same problem-over reliance on oil but one President took ownership and one does not.

Number three is Power and Infrastructure

Please prove me to the contrary that power generation has gone down drastically under GEJ. You said under your post that GEJ has been empowering SME by giving them grants and loans. That is a good move which every sensible government does in order to stimulate the economy but in the case of GEJ, it is like fetching water in a basket. Let me not talk about the transparency of the process or any other thing that I cannot prove. It is widely known that over half of SME’s, trade and craft work are dead before arrival when power supply is a problem. The cost of doing business becomes high and unbearable and how do they survive. So why throw money to the oceans by giving grants to businesses that are bound to fail due failure in power sector. See now how failure in one sector leads to failure in another.

Good roads, effective and efficient transport system is one key factor because it affect the flow of labour as well and goods and service. GEJ has started a rail project so is Ameachi and Fashola (I know these will take time but it is taking more time than expected). GEJ has commissioned many Federal roads but I am not too sure how many of them have been completed. It takes a while for such infrastructure to be completed but GEJ has been in government for six years (as President). Our roads are still death traps, cost of doing businesses are high while efficiency of the final product delivery is poor

These three pointers are critical factors to the ease of doing business in any environment (all are critical to foreign and local business survival)