The Federal Government yesterday in Abuja released the elements of the home-gown economic programme to be monitored by the International Monetary Fund (IMF).

The Federal Government yesterday in Abuja released the elements of the home-gown economic programme to be monitored by the International Monetary Fund (IMF). An agreement for the receipt of 596 million Euros grant, from the European Union, under the ninth European Development Fund (EDF) allocation was also signed.

The chief economic adviser to the president, Dr. Magnus Kpakol, briefing newsmen on the state of the economy, listed the parameters, which have been a subject of national discourse since the discontinuation of the IMF programme to include the following:

* Strengthening good governance and efficiency;

* Lessen dependence on crude oil exports by developing agriculture and agro-business, adding value to mined products, expanding contribution from natural gas and generating more value in oil industry and expand reserves;

* Set growth targets to available domestic resources;

* Minimise savings gap requirements;

* Maintain fiscal discipline-deficit financing to be a minimum; and

* Monetary policy to be market responsive.

Kpakol submitted that the way to success in the Nigerian economy is the private sector not the public sector, adding “We will never have a headway in the economy except we capitalize on the private sector.”

He reported a reduction in the rate of inflation to 10.2 per cent in May from 12.8 per cent in April 2002 and about 23 per cent in April and May of last year. This, according to him, indicates that the economy has recorded considerable stability.

Kpakol explained that the EDF called the Country Strategy Paper and the National Indicative Program-me (NIP) he signed on behalf of the Federal Government will be applied over a period of five years from 2002 to 2007, to fight poverty as well as support the electoral commission.

Assuring that the government will judiciously utilise all available resources,both internal and external to improve the standard of living of the people, he disclosed that the focus of assistance from the EU will be in two sectors, namely: water supply and sanitation, and institutional strengthening for improved economic management.

He further stated that six states from the six geo-political zones that would benefit from the assistance are Abia, Cross River, Gombe, Kebbi, Osun and Plateau States.

Kpakol, however, stressed that “the significance of the assistance from the EU should not be viewed mainly in terms of its size but its expected positive effects on delivery of programmes by public sector institutions.”

He said Nigeria is a richly endowed country with abundant human and natural resources, including vast deposits of crude oil among other minerals, “we are now engaging modalities to ensure that these resources are fully utilized to the benefit of the citizenry.”

In his remark, the European Union Commissioner in charge of Development and Humanitarian Aid, Poul Nielson signing for the EU said the cooperation agreement is the result of the efforts and the progress of the civilian government.

“With the transition towards democracy, Nigeria has made much progress over the recent years,” he said.

He however warned that Nigeria faces many challenges ahead, adding that this aid package “is a concrete and tangible testimony of the EU’s commitment to continue its support for Nigeria’s economic and social development.”

Kunle Aderinokun, This Day (Lagos), July 17, 2002