The New Marshall Plan and Economic Stimulus for Nigeria
Russell Duke
The Nigerian government’s revenue and financial position is free fall and has declined sharply in 2015. The data below was reported by Nigeria government officials by international news outlets including the Daily Mail in the U.K. that reported the following.
A cash shortage caused by low oil prices has forced Nigeria to borrow heavily through the early part of 2015, with the government struggling to pay public workers, officials said Wednesday.
“We have serious challenges. Things have been tough since the beginning of the year and they are likely to remain so till the end of the year,” said Finance Minister Ngozi Okonjo-Iweala, adding that more than half of this year’s borrowing allowance had already been exhausted.
Nigeria, Africa’s top economy and largest oil producer, has been hammered by the 50 percent fall in oil prices as crude sales account for more than 70 percent of government revenue.
“As it stands today, most states of the federation have not been able to pay salaries and even the federal government has not paid (April) salary and that is very worrisome,” said Imo state Governor Rochas Okorocha.
The Nigeria government and economy requires an immediate and impactful economic stimulus and financial rescue plan to tackle the economic difficulties currently facing Nigeria which if they continue will pose risk beyond only economic in nature, but will damage the future and quality of life for Nigerians and the newly elected incoming political party.
I have followed this evolving situation politically and economically very closely including our institutions local teams on the ground throughout Africa. I have met with and discussed the current economic landscape and future of Nigeria with leading African business people and decision makers. As a result of devotion to Nigeria as a long term financial partner, National Standard Finance, LLC that I am honored to serve as Chairman of has developed an economic stimulus package and infrastructure investment plan tailored for the Nigerian economy as well as a small grouping of other pre-selected African nations. This economic stimulus and infrastructure development plan is our version of the European Marshall Plan for Africa to restore Nigeria’s economy and build stability and opportunity for decades ahead for its citizens as Africa’s leading economy.
Subject to proper government support and approval, National Standard in conjunction with a currently organized global consortium of large financial institutions and funds mostly from North America are prepared to inject billions of U.S. dollars of private institutional capital at very attractive terms (below the current government sovereign bond interest rate) into the Nigeria government and economy in the coming months, but also for years to come. National Standard’s comprehensive plan includes capital for low income housing, high quality healthcare, power, education and the transmission grid system that is so urgently needed as well as transportation, agriculture and mining. Additionally, we intend to work with the new government leaders to partner with the government to fund the operating budget shortfalls to ensure workers are paid and the economy is stabilized and begins to strengthen as we implement our economic stimulus plan to create new jobs, improved infrastructure and increasing the country’s foreign reserve holdings which are critical for international trade.
Nigeria cannot wait for oil prices to rise or for the IMF or World Bank to provide new funds to Nigeria as these processes are unpredictable, highly politically driven and are very slow to develop. National Standard and its partners are here now and are committed to being long term partners for the next 20 to 30 years or longer not only when the economy is thriving and opportunity is plentiful, but in times of difficulty as Nigeria finds itself today.
Global Sovereign and Infrastructure Investors
National Standard Finance, LLC is a leading multinational institutional alternative investment company and asset manager that specializes in sovereign (government) and infrastructure investing. National Standard is capitalized by a consortium of large North American financial institutions and some of the world’s leading global investment banks with combined financial assets exceeding US $2 Trillion which provide us with the financial backing to tackle the most complex and challenging financial transactions. National Standard maintains offices and staff across the global markets we serve.
A pioneer with best in class capabilities in global sovereign and infrastructure financial markets, National Standard is partnered with sovereign and sub-sovereign governments, helping design and fund infrastructure development programs. This includes leading government sponsored finance agencies and many of the world’s elite institutional investors, to create a progressive global capital syndicate dedicated to financing critical infrastructure and sovereign capital requirements around the world.
The sector focus is credit-worthy essential infrastructure assets, including but not limited to transportation, energy (Power, Oil & Gas), social programs including low income housing, healthcare and other mission critical assets sponsored by sovereign partners and executed by world-class private sector partners.
National Standard’s mission is to provide long term flexible private infrastructure capital [debt, leasing & equity] to select international markets, massively underserved by deleveraging international banks, formerly the backbone within these segments.
National Standard serves the global sovereign, sub-sovereign and infrastructure financial markets as the leading go-to financial institution for complex cross border financial transactions. National Standard is a leading progressive institution in Foreign Direct Investment across the emerging markets including Africa, India, Middle East and Latin America.
National Standard develops and finances infrastructure and real estate assets by bridging the gap between the public authorities’ financing requirements and their need to deliver long-term infrastructure assets and services, with the expertise and efficiencies provided by private sector developers and private capital.
A strategic player in global infrastructure markets and sovereign based investing, National Standard partners with sovereign, sub-sovereign and local governments, private developers and like-minded corporations to help design infrastructure development and capital programs. Our relationships with leading Sovereign Wealth Funds, government finance agencies and institutional investors create a multi-national syndicate dedicated to financing and owning critical infrastructure around the world. The firm may also act as a Foreign Direct Investor supplying new capital and local opportunity in foreign markets.
National Standard’s Africa operations (National Standard Finance Africa) are managed out of Johannesburg, South Africa and is managed by Michael Tichareva, Principal and Managing Director of National Standard Finance Africa and Kajiya Kantumoya, Director of Investments for Africa.
•Russell Duke is Chairman & Managing Principal at National Standard Finance, LLC. Mr. Duke can be reached at RDuke@NatStandard.com. www.NatStandard.com
Related
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
4 Comments
we don’t need this kind of investment. nigeria has the capacity and resources to develop what is required. what is lacking is the political desire and the right leadership. we required leaders willing to take on the entrenched powers and drive the country forward. we need leaders that would solve the problem outside the box, that would focus on on the and complete it.
@disqus_NViGChiabg:disqus, have you heard that “no man is an Island”? If so, then you will understand that what this company is doing is essential in world economics today. When you are short of funds, you laak for were ta borrow if you can demonstrate that your funds situation is only temporary. So on a macro level, see this company as your neighborhood finance company. They provide a service. But the real question every Nigerian with children should be asking is; what sacrifice is the ruling class going to make sure that the growth seen in Nigeria’s economy will not be reversed given a 50% drop in the price of oil?
I honestly think that what the company is about to do is good but should not be encouraged for a growing nation like Nigeria. I believe in the theory where government should be concerned only in development of infrastructure, good roads, electricity, water supply and other social amenities. Government can achieve this through the tax collected, our oil sales and other resources. This company should focus on the lending fund to the private institutions and individuals where possible. Government should not be involved in business and so much borrowings.
BLESSING EKEOCHA. Dept of Mass Communication. Caleb University, Imota Lagos.
I am not a financial expert, but given what I know about policies and programmes development and implementation in Nigeria, your proposed Marshall Plan for Nigeria might fall far short of its intended goal(s). For your plan to succeed, the Federal Government of Nigeria must adopt policy-driven approach to plans and programmes development and implementation. Such policy documents and implementation plans must be approved by both houses of the
National Assembly, and the Executive, with stipulation for specific actions, goals to be achieved, and consequences for failure to comply and attain desired goals at set milestones/dates.
In almost all of the areas of investments mentioned, the Nigeria Government does not presently have in place strong policies governing their development and implementation, which requires the federal, states and local entities to develop and adopt plans and programmes with set goals, or impose onto federal, states and local entities any penalties, such as withholding of funds, or any form of punitive measures for failure to attain set goals or milestones.
Until Nigeria adopts such strategies, the West can continue to pure money into Nigeria, and all that such efforts will accomplish are impoverishing Nigerians, mounting national debts, and enriching foreign investors at the expense of future generations of Nigerians.
We will review and take appropriate action.