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You are here:Home>>Emeka Chiakwelu>>Displaying items by tag: G20
Displaying items by tag: G20
Thursday, 09 September 2010 17:02

G20 Seoul Summit and Nigeria

Nigeria for permanent membership

In Seoul, capital city of South Korea the leaders of G20 nations will soon gather again for an important summit. G20 is powerful group of developed and emerging economies that dominate the global economic scene and have a lion share of 95 percent of the world economy. The fundamental purpose of the group is to stabilize the world economy. Without doubt G20 is the place to be and any important nation missing in the action will definitely felt the financial and economic ramifications.

Nigeria for all the encompassing reasons should have been the permanent member of the group. But due to her prior devastating ‎ political-economic structural imbalances she was inhibited from not making the membership at the inception of the group. Intrinsically, things are gradually but steadily changing in the country and Nigeria is making progress that must be appreciated. Democratic capitalism is taking holds in the country; the politics of military dictatorship has given away to democratic pluralism. Economic strangulation by collectivism and centralization has been reformed and economic opportunity is becoming reachable. Nigeria is heading towards a right direction but she is not yet home free.

Even with the accumulative progress Nigeria is still not invited as a permanent member as the “Twenty world leaders come together in Seoul this November to discuss the state of the global economy as it emerges from the financial crisis. Together, they will take the necessary steps to reduce market volatility and move past the crisis, creating sustainable growth going forward.”

The government of the President Goodluck Jonathan is steadily rising to the occasion of protection of lives and property. By no means one cannot  boast that Nigeria is a perfect nation. One thing for sure Nigeria as a nation has begun to make the serious decision and showing signs that she is willing to make changes -  to make life better and livable in the second largest economy in Africa and the most populous country in the continent.

President Goodluck Jonathan is making a progress that should be encouraged and nurtured. The government of Nigeria under his leadership is making practical plans to have a free and fair election in 2011. He is making effort in turning around paucity of energy in Nigerian industrial landscape. The major vulnerability of Nigeria’s economy is insufficient electric power supply which has hampered maximum economic output and industrialization. Recently, a large resource was set aside to revamp electric energy supply coupled with privatization proposal. We can say for sure that Nigeria is moving in the right direction.

The principal global economic powers especially United States and China are highly committed to financial global stabilization inorder to enhance trade and commerce with modest inflation and deficits. They should recognize the importance of Nigerian active participation on economic global scene as a full member of G20. Nigeria has a bulging GDP and is a major supplier of oil to US and China. Therefore Nigeria as an acceptable economic powerhouse can aid to stabilize Africa in general and the West Africa sub-region in particular.

Nigeria is making a substantial move to address her structural imbalances in the area of economics and politics; the admission into G20 will booster her confidence as she strives to better her Scio-economic and political standing in the world. Africa needs Nigeria to make it and a responsible and successful Nigeria, will impact positively to Africa.

Nigerian economy is growing steadily at 7.3 percent in second quarter of 2010 and is being projected to grow to 10 percent in 2011. The Nigerian GDP was about $207 Billion in 2008 and foreign debt-to-GDP ratio is estimated at about 3.1 percent. With a sustainable debt and one of lowest debt-to-GDP in the world, Nigeria is poise for tremendous growth in near future.

Nigeria does not necessarily have to lobby to be admitted to G20 but she must made her case to the august body and reminds everybody that a stable and economically growing Nigeria will contribute immensely to the stability of the global economy.

Most importantly, President Jonathan must be encouraged in his challenging goal to improve the lot of the country. The best thing that the rest of the great emerging powerful economies including China, India, Brazil and South Africa could do are to play a vital role in making the permanent membership of Nigeria to G20 possible.

Nigerian economy is growing at a fast pace. This year at the tail end of second quarter the economy is growing at the rate 7.3 percent compared to the global sluggish and anemic growth. “According to forecasts by OECD (Organization for Economic Cooperation and Development), global economic growth this year will be 4.6 percent compared to 3.4 percent forecasted by the organization earlier. In 2011, the OECD expects growth in the global economy at 4.5 percent compared to 3.7 percent projected earlier. Faster recovery of the global economy takes place at the expense of economic growth in Asia. In particular, China's GDP growth is projected at the level of 11.1 percent this year.

Econometric forecasting "provided by the International Monetary Fund (IMF), global economic growth will amount to 4.2 percent this year.”  And Nigeria is projected to grow at 10 percent in 2010 and preceding year. This is keeping Nigeria in a good company of one of the fasted growing economies in the world.

For the concerted and coordinated global economic growth and financial stabilization, the G20 cannot afford to overlook the importance of Nigeria. As an emerging economy and leader in the continent of Africa, Nigeria is a resourceful nation. Nigeria needs a permanent seat at the table where economic decisions affecting Nigeria and Africa are made.

 

Nigeria the economic power house of West Africa sub-region was invited to the G-8 and G-20 combined summit that took place in the Western hemisphere nation of Canada. Nigeria is not an official member of either G8 or G20 but an invitation to the summit was given to her along with other important emerging markets of Southern hemisphere. South Africa was also at the meeting as an official member of G20. Nigeria and South Africa are largest economies in Africa. While South Africa is a member of G-20, Nigeria is not. Nigeria‘s GDP is bulging and her economy is growing at the rate of 7.23 percent in the first quarter of 2010 compares to the expected global rate of about 3.9 percent.

This is not the first time Nigeria has been invited to G-8 meeting. She has been coming to these meetings for a while including those held during the era of the former British Prime Minister Tony Blair and former US President George Bush. As a guest and as an observer to the summit, Nigeria cannot not fully and thorough participate in depth or take the advantage of a membership holder. The exclusive privileges given to the members of the group eluded of the country, particularly on the fiscal matters.

Why is Nigeria invited to these summits? Well, one can give an intelligent and reasonable answer without much guessing. Yes! Nigeria is the most populous country in Africa and the natural leader of the continent. Nigeria is a sleeping giant of Africa that has been in dormancy for a long time. Nigeria is rich in both human and natural resources but paucity of strategic managers to manage her efficiently has delayed her rise as a developed economic power in the continent. She has been invited to the summits because she has something to offer to the global village. For Nigeria as an economic unit can contribute to stabilization of the world economy by her active and comprehensive participation in the world economic system.

Nigeria could not make it as an official member of G-20 nations because during the formation of the group the country was both political and economic unstable. For a long time Nigeria was under ruler ship of a dictatorial authority and her economy were in miserable hands without adequate productivity and planning. The country‘s economy was fundamentally and structurally imbalanced. The economy operated in the cloak of opaqueness without transparency and probity. But the story is changing and Nigeria is singing a new tune. Democratic capitalism is gradually but steadily taking root in the country.

Now with emergence of democracy and steadily economic progress, Nigeria is ready to become a fully and active member of G-20. The fledging democratic dispensation needs to be nurtured and supported; therefore the best way of encouraging Nigeria is to be accepted into this August body. Nigeria is changing and changing for the best with enduring political sensibility. The change was buttressed during the recent transfer of power which was smooth without hiccups. When the late President Umaru Yar’dua passed away, the vice-President Goodluck Jonathan was swiftly sworn-in without much ado.

His Excellency President Goodluck Jonathan represented Nigeria at the summit in Canada. Since he took the helms of power he has demonstrated his capacity to lead his fellow country men and women in accordance to democratic principle. President Jonathan has been working speedily to resolve the issue of Niger Delta and has been making the requisite arrangements and plans to solve the problem of electric power shortage. Nigerians on the street are beginning to say good things about the new leader. The world leaders are receiving the Nigerian leader with open hands and respect as he moved forward in restoring the dignity of our country. All these developments can help to make Nigeria become an official member of G-20.

Nigeria has continued to be a stabilizing force in Africa and beyond. Nigeria with its strategic role in African Union is moving Africa forward with its leadership. When Liberia and Sierra Leone were raging with civil wars and uprising, Nigerian military contingency was a peace keeping force that restored stability in the troubled land. All over the world, Nigerian peace keepers can be found in troubled places of the world, propelling and protecting peace. Nigeria needs to be part of the G-20 in order to fully represent African financial and economic interest. Resources-rich Africa with a population of almost one billion has not been fully represented in the G-8 or G-20 of the world. Nigeria together with South Africa can best represent the interest of Africa. Therefore let‘s make it official and admit Nigeria to G-20.

Emeka Chiakwelu is the Principal Policy Strategist at Afripol Organization. Africa Political and Economic Strategic Center (Afripol) is foremost a public policy center whose fundamental objective is to broaden the parameters of public policy debates in Africa. To advocate, promote and encourage free enterprise, democracy, sustainable green environment, human rights, conflict resolutions, transparency and probity in Africa.