PeakNews Online
Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has urged Nigeria to adopt a social contract that guarantees policy continuity to achieve sustainable economic growth.
She made this call while delivering the keynote address at the opening of the Nigerian Bar Association’s (NBA) 2024 Annual General Conference in Lagos on Sunday.
Speaking on the topic “A New Social Contract for Nigeria’s Future”, Okonjo-Iweala stressed the importance of policy consistency across administrations, noting that Nigeria’s economic challenges are partly due to the frequent changes in policies when governments transition.
According to her, the proposed social contract should be a “cross-party, cross-society agreement” that certain economic, political, and social principles are “sacrosanct and shall not be changed when administrations change.” She emphasized that this framework should be institutionalized through laws or even enshrined in the constitution.
“Nigeria today is not where it should be, and our country has not progressed as it should have,” Okonjo-Iweala said, adding that after 60 years of independence, the country should no longer be discussing nation-building but should instead focus on concrete actions to drive development.
She attributed much of Nigeria’s economic stagnation to a lack of policy continuity, stating that successive governments have failed to build on sound economic initiatives introduced by their predecessors.
Call for Security and Policy Reforms
A key element of the proposed social contract, according to Okonjo-Iweala, is ensuring security, both in terms of protecting life and property, as well as safeguarding national assets. She pointed out that organized theft, especially in the oil sector, has severely undermined Nigeria’s economic performance.
“All Nigerians must agree that stealing of our national assets of any type is intolerable and must be stopped,” she said. Okonjo-Iweala also stressed the importance of fiscal discipline, calling for limits on public debt and transparent budget management.
She highlighted that policies such as maintaining a debt-to-GDP ratio below 40% and limiting debt service to 33% of revenue would help ensure macroeconomic stability. Okonjo-Iweala further emphasized the need for investment-friendly policies to encourage both domestic and foreign private sector investments.
Tinubu Government Responds
In his remarks, President Bola Tinubu, represented by Vice President Kashim Shettima, reaffirmed his administration’s commitment to addressing the country’s economic challenges. He noted that recent reforms, such as collapsing the multiple exchange rate regime, have already begun to curb corruption.
Responding to Okonjo-Iweala’s call for a social contract, Shettima expressed confidence in the government’s ability to tackle Nigeria’s developmental challenges. He assured that the administration would prioritize the welfare of the judiciary, which he said was crucial for promoting social order and economic progress.
“You have done justice to what is needed in this country,” Shettima said, acknowledging the importance of Okonjo-Iweala’s recommendations for policy stability and governance reform.
The NBA conference, which brought together key stakeholders from across the country, provided a platform for robust discussions on Nigeria’s future, with a focus on aligning policy and governance towards long-term economic development.
