The economic policy focus of the Tinubu government since its assumption of office has been towards mobilising revenue to meet government expenditure. And, it has done well in this regard. In many cases, reported revenues exceeded projected income by significant margins, particularly tariffs on imports and taxes and levies collected by the NNPCL. Actually, efficient and effective revenue collection from non-oil items like Companies Income Tax, Value Added Tax, and Customs duties has regularly overshot expectations in recent times.Companies have been complying with tax policies on payments in line with tax administration reforms on Companies Income Tax, while digitalisation of tax collections has aided improvements in VAT collection, and the automated processes of tariff collection by customs have propelled the realisation of huge returns from Customs collections. The Nigerian Customs Service shows overperformance when it was reported to have collected N3.68tn in the first half of a fiscal cycle, beating a pro-rata projection by N390bn.Within an 8-month tracking block, the non-oil revenue reached N15.69tn or 75 per cent of all federally collected revenue, and gross non-oil collections reached a peak when they rose by 28.85 per cent in a single month-over-month period, shifting from N1.86tn to N2.4tn. While the non-oil revenues have been performing wonderfully and keeping the revenue targets afloat, the oil and gas sector, in terms of output, has been underperforming. However, the biggest source of revenue in the country remains the petroleum sector, as Petroleum Profit Tax and royalties make up a major part of the national income, and crude oil and gas sales dominate foreign exchange earnings and government revenue.The increased revenue is not usually fully reported, as there are lots of leakages in the system. The fact that national stealing has reached systemic heights, where billions of naira are stolen undetected until the thief leaves office and is investigated, is alarming. The fact that many of the current and past identified thieves still roam Nigerian space unhindered shows failure in governance. Also, because a large proportion of the revenue is spent on servicing and repayment of debts, which negatively affect economic growth, it implies that government should shift focus from revenue per se to production and productivity, which will still result in increased revenue but equally open up the economy and promote employment.What happens to output in the oil and gas sub-sector is replicated in agriculture, manufacturing and mining, with little or no significant growth. Just as the policies that focused on revenue generation have not only resulted successfully in improved revenue but also in overperformance in revenue generation, a shift in policy focus to improved output can successfully change the growth trajectory of the Nigerian economy in terms of improved productivity, income/revenue, and employment generation. Efficiency and effectiveness are responsible for the resounding success in revenue generation. This implies a high level of productivity.To improve production, the need to increase productivity is imperative. Production refers to the total volume of final goods and services produced for consumers or end users, but productivity relates to the efficiency and effectiveness in the use of resources to produce the output. The two are closely linked, more so than productivity is calculated using production as the top number. High production, however, may not mean high productivity but just an input-output relationship. A major problem of production in Nigeria is low productivity, and the need to improve the factors that increase productivity or efficiency is imperative. What are these factors?Productivity is affected, positively or negatively, by human and material resources, science and technology, physical and financial infrastructure, and management practices. The human element is very important and can be regarded as the overarching element because it is the most active element of factors of production, such that its efficiency determines the efficiency of other factors. So, government policy must focus on developing skilled manpower or providing sound and quality education for innovation and invention through science and technology. This calls for well-thought-out reforms rather than ad hoc policy statements.Related NewsEterna posts N5.88bn half-year profitBanking stocks drive NGX turnover up 32% to N404.7bnNNPC posts N2.27tn half-year profit amid oil price rallyLabour must be well remunerated to avoid moonlighting that detracts labour from putting optimum efforts into its work. Nigeria has one of the lowest-paid workforces in the world, and that has resulted in workers cutting corners and massive corruption in the public service. Regular in-service training, workshops, and other incentives to motivate and sensitise labour for effective production and improve productivity need to be put in place. There are instances of forced labour and below-minimum-wage remuneration in the private sector that negatively affect productivity and must be addressed.The country’s natural resources are extracted and processed more in the illegal and informal sector than in the open to enter the GDP calculation. We have all sorts of illegal mining and oil bunkering in many areas in the country. Massive waste and low productivity usually follow illegal activities. Policies must be initiated to formalise all activities and processes.Countries that want to grow technologically do not wait for technology transfer, which may never come, even with foreign direct investments. Countries deliberately sponsor their citizens to go for studies in STEM in advanced economies as a way of enhancing their technology advancement. On a visit to China in 2009, we were informed that over 120000 Chinese were studying, on sponsorship, Engineering, Science and Technology in Australia. Actually, no technology is transferred in a largely illiterate society like ours. Our universities of technology and even polytechnics lack modern equipment for training such that the graduates, when they see technology in workplaces, cannot recognise or adopt it. Studying where the technology is produced and resides promotes knowledge faster than “learning by copying”.Regarding physical infrastructure, there have been massive investments in transport infrastructure over the last two decades, but shoddy work is being done, requiring continuous repairs. But there have been more proposals on integrated transport systems involving roads, rail and air than actual execution of the proposal on the ground. The massive corruption starts from heavy payment for feasibility studies and designs, such that there would be no funds for execution of the projects.Power, in terms of electricity generation for production, either through the PHCN or the regular generators, remains expensive and takes a large chunk of the operation costs, making our products uncompetitive in both the domestic and international markets. Regional economic bodies need to step into regional power generation and distribution in collaboration with states within each region. There is already a policy that allows for the generation of electricity by States and even the private sector. What is required is implementation. If Abia State can do it, why can other States like Lagos, Ogun, Kaduna, Kano, Anambra, Rivers and the FCT or the regional entities, do the same?Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. Companies have been complying with tax policies on payments in line with tax administration reforms on Companies Income Tax, while digitalisation of tax collections has aided improvements in VAT collection, and the automated processes of tariff collection by customs have propelled the realisation of huge returns from Customs collections. The Nigerian Customs Service shows overperformance when it was reported to have collected N3.68tn in the first half of a fiscal cycle, beating a pro-rata projection by N390bn.Within an 8-month tracking block, the non-oil revenue reached N15.69tn or 75 per cent of all federally collected revenue, and gross non-oil collections reached a peak when they rose by 28.85 per cent in a single month-over-month period, shifting from N1.86tn to N2.4tn. While the non-oil revenues have been performing wonderfully and keeping the revenue targets afloat, the oil and gas sector, in terms of output, has been underperforming. However, the biggest source of revenue in the country remains the petroleum sector, as Petroleum Profit Tax and royalties make up a major part of the national income, and crude oil and gas sales dominate foreign exchange earnings and government revenue.The increased revenue is not usually fully reported, as there are lots of leakages in the system. The fact that national stealing has reached systemic heights, where billions of naira are stolen undetected until the thief leaves office and is investigated, is alarming. The fact that many of the current and past identified thieves still roam Nigerian space unhindered shows failure in governance. Also, because a large proportion of the revenue is spent on servicing and repayment of debts, which negatively affect economic growth, it implies that government should shift focus from revenue per se to production and productivity, which will still result in increased revenue but equally open up the economy and promote employment.What happens to output in the oil and gas sub-sector is replicated in agriculture, manufacturing and mining, with little or no significant growth. Just as the policies that focused on revenue generation have not only resulted successfully in improved revenue but also in overperformance in revenue generation, a shift in policy focus to improved output can successfully change the growth trajectory of the Nigerian economy in terms of improved productivity, income/revenue, and employment generation. Efficiency and effectiveness are responsible for the resounding success in revenue generation. This implies a high level of productivity.To improve production, the need to increase productivity is imperative. Production refers to the total volume of final goods and services produced for consumers or end users, but productivity relates to the efficiency and effectiveness in the use of resources to produce the output. The two are closely linked, more so than productivity is calculated using production as the top number. High production, however, may not mean high productivity but just an input-output relationship. A major problem of production in Nigeria is low productivity, and the need to improve the factors that increase productivity or efficiency is imperative. What are these factors?Productivity is affected, positively or negatively, by human and material resources, science and technology, physical and financial infrastructure, and management practices. The human element is very important and can be regarded as the overarching element because it is the most active element of factors of production, such that its efficiency determines the efficiency of other factors. So, government policy must focus on developing skilled manpower or providing sound and quality education for innovation and invention through science and technology. This calls for well-thought-out reforms rather than ad hoc policy statements.Related NewsEterna posts N5.88bn half-year profitBanking stocks drive NGX turnover up 32% to N404.7bnNNPC posts N2.27tn half-year profit amid oil price rallyLabour must be well remunerated to avoid moonlighting that detracts labour from putting optimum efforts into its work. Nigeria has one of the lowest-paid workforces in the world, and that has resulted in workers cutting corners and massive corruption in the public service. Regular in-service training, workshops, and other incentives to motivate and sensitise labour for effective production and improve productivity need to be put in place. There are instances of forced labour and below-minimum-wage remuneration in the private sector that negatively affect productivity and must be addressed.The country’s natural resources are extracted and processed more in the illegal and informal sector than in the open to enter the GDP calculation. We have all sorts of illegal mining and oil bunkering in many areas in the country. Massive waste and low productivity usually follow illegal activities. Policies must be initiated to formalise all activities and processes.Countries that want to grow technologically do not wait for technology transfer, which may never come, even with foreign direct investments. Countries deliberately sponsor their citizens to go for studies in STEM in advanced economies as a way of enhancing their technology advancement. On a visit to China in 2009, we were informed that over 120000 Chinese were studying, on sponsorship, Engineering, Science and Technology in Australia. Actually, no technology is transferred in a largely illiterate society like ours. Our universities of technology and even polytechnics lack modern equipment for training such that the graduates, when they see technology in workplaces, cannot recognise or adopt it. Studying where the technology is produced and resides promotes knowledge faster than “learning by copying”.Regarding physical infrastructure, there have been massive investments in transport infrastructure over the last two decades, but shoddy work is being done, requiring continuous repairs. But there have been more proposals on integrated transport systems involving roads, rail and air than actual execution of the proposal on the ground. The massive corruption starts from heavy payment for feasibility studies and designs, such that there would be no funds for execution of the projects.Power, in terms of electricity generation for production, either through the PHCN or the regular generators, remains expensive and takes a large chunk of the operation costs, making our products uncompetitive in both the domestic and international markets. Regional economic bodies need to step into regional power generation and distribution in collaboration with states within each region. There is already a policy that allows for the generation of electricity by States and even the private sector. What is required is implementation. If Abia State can do it, why can other States like Lagos, Ogun, Kaduna, Kano, Anambra, Rivers and the FCT or the regional entities, do the same?Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. Within an 8-month tracking block, the non-oil revenue reached N15.69tn or 75 per cent of all federally collected revenue, and gross non-oil collections reached a peak when they rose by 28.85 per cent in a single month-over-month period, shifting from N1.86tn to N2.4tn. While the non-oil revenues have been performing wonderfully and keeping the revenue targets afloat, the oil and gas sector, in terms of output, has been underperforming. However, the biggest source of revenue in the country remains the petroleum sector, as Petroleum Profit Tax and royalties make up a major part of the national income, and crude oil and gas sales dominate foreign exchange earnings and government revenue.The increased revenue is not usually fully reported, as there are lots of leakages in the system. The fact that national stealing has reached systemic heights, where billions of naira are stolen undetected until the thief leaves office and is investigated, is alarming. The fact that many of the current and past identified thieves still roam Nigerian space unhindered shows failure in governance. Also, because a large proportion of the revenue is spent on servicing and repayment of debts, which negatively affect economic growth, it implies that government should shift focus from revenue per se to production and productivity, which will still result in increased revenue but equally open up the economy and promote employment.What happens to output in the oil and gas sub-sector is replicated in agriculture, manufacturing and mining, with little or no significant growth. Just as the policies that focused on revenue generation have not only resulted successfully in improved revenue but also in overperformance in revenue generation, a shift in policy focus to improved output can successfully change the growth trajectory of the Nigerian economy in terms of improved productivity, income/revenue, and employment generation. Efficiency and effectiveness are responsible for the resounding success in revenue generation. This implies a high level of productivity.To improve production, the need to increase productivity is imperative. Production refers to the total volume of final goods and services produced for consumers or end users, but productivity relates to the efficiency and effectiveness in the use of resources to produce the output. The two are closely linked, more so than productivity is calculated using production as the top number. High production, however, may not mean high productivity but just an input-output relationship. A major problem of production in Nigeria is low productivity, and the need to improve the factors that increase productivity or efficiency is imperative. What are these factors?Productivity is affected, positively or negatively, by human and material resources, science and technology, physical and financial infrastructure, and management practices. The human element is very important and can be regarded as the overarching element because it is the most active element of factors of production, such that its efficiency determines the efficiency of other factors. So, government policy must focus on developing skilled manpower or providing sound and quality education for innovation and invention through science and technology. This calls for well-thought-out reforms rather than ad hoc policy statements.Related NewsEterna posts N5.88bn half-year profitBanking stocks drive NGX turnover up 32% to N404.7bnNNPC posts N2.27tn half-year profit amid oil price rallyLabour must be well remunerated to avoid moonlighting that detracts labour from putting optimum efforts into its work. Nigeria has one of the lowest-paid workforces in the world, and that has resulted in workers cutting corners and massive corruption in the public service. Regular in-service training, workshops, and other incentives to motivate and sensitise labour for effective production and improve productivity need to be put in place. There are instances of forced labour and below-minimum-wage remuneration in the private sector that negatively affect productivity and must be addressed.The country’s natural resources are extracted and processed more in the illegal and informal sector than in the open to enter the GDP calculation. We have all sorts of illegal mining and oil bunkering in many areas in the country. Massive waste and low productivity usually follow illegal activities. Policies must be initiated to formalise all activities and processes.Countries that want to grow technologically do not wait for technology transfer, which may never come, even with foreign direct investments. Countries deliberately sponsor their citizens to go for studies in STEM in advanced economies as a way of enhancing their technology advancement. On a visit to China in 2009, we were informed that over 120000 Chinese were studying, on sponsorship, Engineering, Science and Technology in Australia. Actually, no technology is transferred in a largely illiterate society like ours. Our universities of technology and even polytechnics lack modern equipment for training such that the graduates, when they see technology in workplaces, cannot recognise or adopt it. Studying where the technology is produced and resides promotes knowledge faster than “learning by copying”.Regarding physical infrastructure, there have been massive investments in transport infrastructure over the last two decades, but shoddy work is being done, requiring continuous repairs. But there have been more proposals on integrated transport systems involving roads, rail and air than actual execution of the proposal on the ground. The massive corruption starts from heavy payment for feasibility studies and designs, such that there would be no funds for execution of the projects.Power, in terms of electricity generation for production, either through the PHCN or the regular generators, remains expensive and takes a large chunk of the operation costs, making our products uncompetitive in both the domestic and international markets. Regional economic bodies need to step into regional power generation and distribution in collaboration with states within each region. There is already a policy that allows for the generation of electricity by States and even the private sector. What is required is implementation. If Abia State can do it, why can other States like Lagos, Ogun, Kaduna, Kano, Anambra, Rivers and the FCT or the regional entities, do the same?Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. The increased revenue is not usually fully reported, as there are lots of leakages in the system. The fact that national stealing has reached systemic heights, where billions of naira are stolen undetected until the thief leaves office and is investigated, is alarming. The fact that many of the current and past identified thieves still roam Nigerian space unhindered shows failure in governance. Also, because a large proportion of the revenue is spent on servicing and repayment of debts, which negatively affect economic growth, it implies that government should shift focus from revenue per se to production and productivity, which will still result in increased revenue but equally open up the economy and promote employment.What happens to output in the oil and gas sub-sector is replicated in agriculture, manufacturing and mining, with little or no significant growth. Just as the policies that focused on revenue generation have not only resulted successfully in improved revenue but also in overperformance in revenue generation, a shift in policy focus to improved output can successfully change the growth trajectory of the Nigerian economy in terms of improved productivity, income/revenue, and employment generation. Efficiency and effectiveness are responsible for the resounding success in revenue generation. This implies a high level of productivity.To improve production, the need to increase productivity is imperative. Production refers to the total volume of final goods and services produced for consumers or end users, but productivity relates to the efficiency and effectiveness in the use of resources to produce the output. The two are closely linked, more so than productivity is calculated using production as the top number. High production, however, may not mean high productivity but just an input-output relationship. A major problem of production in Nigeria is low productivity, and the need to improve the factors that increase productivity or efficiency is imperative. What are these factors?Productivity is affected, positively or negatively, by human and material resources, science and technology, physical and financial infrastructure, and management practices. The human element is very important and can be regarded as the overarching element because it is the most active element of factors of production, such that its efficiency determines the efficiency of other factors. So, government policy must focus on developing skilled manpower or providing sound and quality education for innovation and invention through science and technology. This calls for well-thought-out reforms rather than ad hoc policy statements.Related NewsEterna posts N5.88bn half-year profitBanking stocks drive NGX turnover up 32% to N404.7bnNNPC posts N2.27tn half-year profit amid oil price rallyLabour must be well remunerated to avoid moonlighting that detracts labour from putting optimum efforts into its work. Nigeria has one of the lowest-paid workforces in the world, and that has resulted in workers cutting corners and massive corruption in the public service. Regular in-service training, workshops, and other incentives to motivate and sensitise labour for effective production and improve productivity need to be put in place. There are instances of forced labour and below-minimum-wage remuneration in the private sector that negatively affect productivity and must be addressed.The country’s natural resources are extracted and processed more in the illegal and informal sector than in the open to enter the GDP calculation. We have all sorts of illegal mining and oil bunkering in many areas in the country. Massive waste and low productivity usually follow illegal activities. Policies must be initiated to formalise all activities and processes.Countries that want to grow technologically do not wait for technology transfer, which may never come, even with foreign direct investments. Countries deliberately sponsor their citizens to go for studies in STEM in advanced economies as a way of enhancing their technology advancement. On a visit to China in 2009, we were informed that over 120000 Chinese were studying, on sponsorship, Engineering, Science and Technology in Australia. Actually, no technology is transferred in a largely illiterate society like ours. Our universities of technology and even polytechnics lack modern equipment for training such that the graduates, when they see technology in workplaces, cannot recognise or adopt it. Studying where the technology is produced and resides promotes knowledge faster than “learning by copying”.Regarding physical infrastructure, there have been massive investments in transport infrastructure over the last two decades, but shoddy work is being done, requiring continuous repairs. But there have been more proposals on integrated transport systems involving roads, rail and air than actual execution of the proposal on the ground. The massive corruption starts from heavy payment for feasibility studies and designs, such that there would be no funds for execution of the projects.Power, in terms of electricity generation for production, either through the PHCN or the regular generators, remains expensive and takes a large chunk of the operation costs, making our products uncompetitive in both the domestic and international markets. Regional economic bodies need to step into regional power generation and distribution in collaboration with states within each region. There is already a policy that allows for the generation of electricity by States and even the private sector. What is required is implementation. If Abia State can do it, why can other States like Lagos, Ogun, Kaduna, Kano, Anambra, Rivers and the FCT or the regional entities, do the same?Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. What happens to output in the oil and gas sub-sector is replicated in agriculture, manufacturing and mining, with little or no significant growth. Just as the policies that focused on revenue generation have not only resulted successfully in improved revenue but also in overperformance in revenue generation, a shift in policy focus to improved output can successfully change the growth trajectory of the Nigerian economy in terms of improved productivity, income/revenue, and employment generation. Efficiency and effectiveness are responsible for the resounding success in revenue generation. This implies a high level of productivity.To improve production, the need to increase productivity is imperative. Production refers to the total volume of final goods and services produced for consumers or end users, but productivity relates to the efficiency and effectiveness in the use of resources to produce the output. The two are closely linked, more so than productivity is calculated using production as the top number. High production, however, may not mean high productivity but just an input-output relationship. A major problem of production in Nigeria is low productivity, and the need to improve the factors that increase productivity or efficiency is imperative. What are these factors?Productivity is affected, positively or negatively, by human and material resources, science and technology, physical and financial infrastructure, and management practices. The human element is very important and can be regarded as the overarching element because it is the most active element of factors of production, such that its efficiency determines the efficiency of other factors. So, government policy must focus on developing skilled manpower or providing sound and quality education for innovation and invention through science and technology. This calls for well-thought-out reforms rather than ad hoc policy statements.Related NewsEterna posts N5.88bn half-year profitBanking stocks drive NGX turnover up 32% to N404.7bnNNPC posts N2.27tn half-year profit amid oil price rallyLabour must be well remunerated to avoid moonlighting that detracts labour from putting optimum efforts into its work. Nigeria has one of the lowest-paid workforces in the world, and that has resulted in workers cutting corners and massive corruption in the public service. Regular in-service training, workshops, and other incentives to motivate and sensitise labour for effective production and improve productivity need to be put in place. There are instances of forced labour and below-minimum-wage remuneration in the private sector that negatively affect productivity and must be addressed.The country’s natural resources are extracted and processed more in the illegal and informal sector than in the open to enter the GDP calculation. We have all sorts of illegal mining and oil bunkering in many areas in the country. Massive waste and low productivity usually follow illegal activities. Policies must be initiated to formalise all activities and processes.Countries that want to grow technologically do not wait for technology transfer, which may never come, even with foreign direct investments. Countries deliberately sponsor their citizens to go for studies in STEM in advanced economies as a way of enhancing their technology advancement. On a visit to China in 2009, we were informed that over 120000 Chinese were studying, on sponsorship, Engineering, Science and Technology in Australia. Actually, no technology is transferred in a largely illiterate society like ours. Our universities of technology and even polytechnics lack modern equipment for training such that the graduates, when they see technology in workplaces, cannot recognise or adopt it. Studying where the technology is produced and resides promotes knowledge faster than “learning by copying”.Regarding physical infrastructure, there have been massive investments in transport infrastructure over the last two decades, but shoddy work is being done, requiring continuous repairs. But there have been more proposals on integrated transport systems involving roads, rail and air than actual execution of the proposal on the ground. The massive corruption starts from heavy payment for feasibility studies and designs, such that there would be no funds for execution of the projects.Power, in terms of electricity generation for production, either through the PHCN or the regular generators, remains expensive and takes a large chunk of the operation costs, making our products uncompetitive in both the domestic and international markets. Regional economic bodies need to step into regional power generation and distribution in collaboration with states within each region. There is already a policy that allows for the generation of electricity by States and even the private sector. What is required is implementation. If Abia State can do it, why can other States like Lagos, Ogun, Kaduna, Kano, Anambra, Rivers and the FCT or the regional entities, do the same?Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. To improve production, the need to increase productivity is imperative. Production refers to the total volume of final goods and services produced for consumers or end users, but productivity relates to the efficiency and effectiveness in the use of resources to produce the output. The two are closely linked, more so than productivity is calculated using production as the top number. High production, however, may not mean high productivity but just an input-output relationship. A major problem of production in Nigeria is low productivity, and the need to improve the factors that increase productivity or efficiency is imperative. What are these factors?Productivity is affected, positively or negatively, by human and material resources, science and technology, physical and financial infrastructure, and management practices. The human element is very important and can be regarded as the overarching element because it is the most active element of factors of production, such that its efficiency determines the efficiency of other factors. So, government policy must focus on developing skilled manpower or providing sound and quality education for innovation and invention through science and technology. This calls for well-thought-out reforms rather than ad hoc policy statements.Related NewsEterna posts N5.88bn half-year profitBanking stocks drive NGX turnover up 32% to N404.7bnNNPC posts N2.27tn half-year profit amid oil price rallyLabour must be well remunerated to avoid moonlighting that detracts labour from putting optimum efforts into its work. Nigeria has one of the lowest-paid workforces in the world, and that has resulted in workers cutting corners and massive corruption in the public service. Regular in-service training, workshops, and other incentives to motivate and sensitise labour for effective production and improve productivity need to be put in place. There are instances of forced labour and below-minimum-wage remuneration in the private sector that negatively affect productivity and must be addressed.The country’s natural resources are extracted and processed more in the illegal and informal sector than in the open to enter the GDP calculation. We have all sorts of illegal mining and oil bunkering in many areas in the country. Massive waste and low productivity usually follow illegal activities. Policies must be initiated to formalise all activities and processes.Countries that want to grow technologically do not wait for technology transfer, which may never come, even with foreign direct investments. Countries deliberately sponsor their citizens to go for studies in STEM in advanced economies as a way of enhancing their technology advancement. On a visit to China in 2009, we were informed that over 120000 Chinese were studying, on sponsorship, Engineering, Science and Technology in Australia. Actually, no technology is transferred in a largely illiterate society like ours. Our universities of technology and even polytechnics lack modern equipment for training such that the graduates, when they see technology in workplaces, cannot recognise or adopt it. Studying where the technology is produced and resides promotes knowledge faster than “learning by copying”.Regarding physical infrastructure, there have been massive investments in transport infrastructure over the last two decades, but shoddy work is being done, requiring continuous repairs. But there have been more proposals on integrated transport systems involving roads, rail and air than actual execution of the proposal on the ground. The massive corruption starts from heavy payment for feasibility studies and designs, such that there would be no funds for execution of the projects.Power, in terms of electricity generation for production, either through the PHCN or the regular generators, remains expensive and takes a large chunk of the operation costs, making our products uncompetitive in both the domestic and international markets. Regional economic bodies need to step into regional power generation and distribution in collaboration with states within each region. There is already a policy that allows for the generation of electricity by States and even the private sector. What is required is implementation. If Abia State can do it, why can other States like Lagos, Ogun, Kaduna, Kano, Anambra, Rivers and the FCT or the regional entities, do the same?Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. Productivity is affected, positively or negatively, by human and material resources, science and technology, physical and financial infrastructure, and management practices. The human element is very important and can be regarded as the overarching element because it is the most active element of factors of production, such that its efficiency determines the efficiency of other factors. So, government policy must focus on developing skilled manpower or providing sound and quality education for innovation and invention through science and technology. This calls for well-thought-out reforms rather than ad hoc policy statements.Related NewsEterna posts N5.88bn half-year profitBanking stocks drive NGX turnover up 32% to N404.7bnNNPC posts N2.27tn half-year profit amid oil price rallyLabour must be well remunerated to avoid moonlighting that detracts labour from putting optimum efforts into its work. Nigeria has one of the lowest-paid workforces in the world, and that has resulted in workers cutting corners and massive corruption in the public service. Regular in-service training, workshops, and other incentives to motivate and sensitise labour for effective production and improve productivity need to be put in place. There are instances of forced labour and below-minimum-wage remuneration in the private sector that negatively affect productivity and must be addressed.The country’s natural resources are extracted and processed more in the illegal and informal sector than in the open to enter the GDP calculation. We have all sorts of illegal mining and oil bunkering in many areas in the country. Massive waste and low productivity usually follow illegal activities. Policies must be initiated to formalise all activities and processes.Countries that want to grow technologically do not wait for technology transfer, which may never come, even with foreign direct investments. Countries deliberately sponsor their citizens to go for studies in STEM in advanced economies as a way of enhancing their technology advancement. On a visit to China in 2009, we were informed that over 120000 Chinese were studying, on sponsorship, Engineering, Science and Technology in Australia. Actually, no technology is transferred in a largely illiterate society like ours. Our universities of technology and even polytechnics lack modern equipment for training such that the graduates, when they see technology in workplaces, cannot recognise or adopt it. Studying where the technology is produced and resides promotes knowledge faster than “learning by copying”.Regarding physical infrastructure, there have been massive investments in transport infrastructure over the last two decades, but shoddy work is being done, requiring continuous repairs. But there have been more proposals on integrated transport systems involving roads, rail and air than actual execution of the proposal on the ground. The massive corruption starts from heavy payment for feasibility studies and designs, such that there would be no funds for execution of the projects.Power, in terms of electricity generation for production, either through the PHCN or the regular generators, remains expensive and takes a large chunk of the operation costs, making our products uncompetitive in both the domestic and international markets. Regional economic bodies need to step into regional power generation and distribution in collaboration with states within each region. There is already a policy that allows for the generation of electricity by States and even the private sector. What is required is implementation. If Abia State can do it, why can other States like Lagos, Ogun, Kaduna, Kano, Anambra, Rivers and the FCT or the regional entities, do the same?Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. Labour must be well remunerated to avoid moonlighting that detracts labour from putting optimum efforts into its work. Nigeria has one of the lowest-paid workforces in the world, and that has resulted in workers cutting corners and massive corruption in the public service. Regular in-service training, workshops, and other incentives to motivate and sensitise labour for effective production and improve productivity need to be put in place. There are instances of forced labour and below-minimum-wage remuneration in the private sector that negatively affect productivity and must be addressed.The country’s natural resources are extracted and processed more in the illegal and informal sector than in the open to enter the GDP calculation. We have all sorts of illegal mining and oil bunkering in many areas in the country. Massive waste and low productivity usually follow illegal activities. Policies must be initiated to formalise all activities and processes.Countries that want to grow technologically do not wait for technology transfer, which may never come, even with foreign direct investments. Countries deliberately sponsor their citizens to go for studies in STEM in advanced economies as a way of enhancing their technology advancement. On a visit to China in 2009, we were informed that over 120000 Chinese were studying, on sponsorship, Engineering, Science and Technology in Australia. Actually, no technology is transferred in a largely illiterate society like ours. Our universities of technology and even polytechnics lack modern equipment for training such that the graduates, when they see technology in workplaces, cannot recognise or adopt it. Studying where the technology is produced and resides promotes knowledge faster than “learning by copying”.Regarding physical infrastructure, there have been massive investments in transport infrastructure over the last two decades, but shoddy work is being done, requiring continuous repairs. But there have been more proposals on integrated transport systems involving roads, rail and air than actual execution of the proposal on the ground. The massive corruption starts from heavy payment for feasibility studies and designs, such that there would be no funds for execution of the projects.Power, in terms of electricity generation for production, either through the PHCN or the regular generators, remains expensive and takes a large chunk of the operation costs, making our products uncompetitive in both the domestic and international markets. Regional economic bodies need to step into regional power generation and distribution in collaboration with states within each region. There is already a policy that allows for the generation of electricity by States and even the private sector. What is required is implementation. If Abia State can do it, why can other States like Lagos, Ogun, Kaduna, Kano, Anambra, Rivers and the FCT or the regional entities, do the same?Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. The country’s natural resources are extracted and processed more in the illegal and informal sector than in the open to enter the GDP calculation. We have all sorts of illegal mining and oil bunkering in many areas in the country. Massive waste and low productivity usually follow illegal activities. Policies must be initiated to formalise all activities and processes.Countries that want to grow technologically do not wait for technology transfer, which may never come, even with foreign direct investments. Countries deliberately sponsor their citizens to go for studies in STEM in advanced economies as a way of enhancing their technology advancement. On a visit to China in 2009, we were informed that over 120000 Chinese were studying, on sponsorship, Engineering, Science and Technology in Australia. Actually, no technology is transferred in a largely illiterate society like ours. Our universities of technology and even polytechnics lack modern equipment for training such that the graduates, when they see technology in workplaces, cannot recognise or adopt it. Studying where the technology is produced and resides promotes knowledge faster than “learning by copying”.Regarding physical infrastructure, there have been massive investments in transport infrastructure over the last two decades, but shoddy work is being done, requiring continuous repairs. But there have been more proposals on integrated transport systems involving roads, rail and air than actual execution of the proposal on the ground. The massive corruption starts from heavy payment for feasibility studies and designs, such that there would be no funds for execution of the projects.Power, in terms of electricity generation for production, either through the PHCN or the regular generators, remains expensive and takes a large chunk of the operation costs, making our products uncompetitive in both the domestic and international markets. Regional economic bodies need to step into regional power generation and distribution in collaboration with states within each region. There is already a policy that allows for the generation of electricity by States and even the private sector. What is required is implementation. If Abia State can do it, why can other States like Lagos, Ogun, Kaduna, Kano, Anambra, Rivers and the FCT or the regional entities, do the same?Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. Countries that want to grow technologically do not wait for technology transfer, which may never come, even with foreign direct investments. Countries deliberately sponsor their citizens to go for studies in STEM in advanced economies as a way of enhancing their technology advancement. On a visit to China in 2009, we were informed that over 120000 Chinese were studying, on sponsorship, Engineering, Science and Technology in Australia. Actually, no technology is transferred in a largely illiterate society like ours. Our universities of technology and even polytechnics lack modern equipment for training such that the graduates, when they see technology in workplaces, cannot recognise or adopt it. Studying where the technology is produced and resides promotes knowledge faster than “learning by copying”.Regarding physical infrastructure, there have been massive investments in transport infrastructure over the last two decades, but shoddy work is being done, requiring continuous repairs. But there have been more proposals on integrated transport systems involving roads, rail and air than actual execution of the proposal on the ground. The massive corruption starts from heavy payment for feasibility studies and designs, such that there would be no funds for execution of the projects.Power, in terms of electricity generation for production, either through the PHCN or the regular generators, remains expensive and takes a large chunk of the operation costs, making our products uncompetitive in both the domestic and international markets. Regional economic bodies need to step into regional power generation and distribution in collaboration with states within each region. There is already a policy that allows for the generation of electricity by States and even the private sector. What is required is implementation. If Abia State can do it, why can other States like Lagos, Ogun, Kaduna, Kano, Anambra, Rivers and the FCT or the regional entities, do the same?Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. Regarding physical infrastructure, there have been massive investments in transport infrastructure over the last two decades, but shoddy work is being done, requiring continuous repairs. But there have been more proposals on integrated transport systems involving roads, rail and air than actual execution of the proposal on the ground. The massive corruption starts from heavy payment for feasibility studies and designs, such that there would be no funds for execution of the projects.Power, in terms of electricity generation for production, either through the PHCN or the regular generators, remains expensive and takes a large chunk of the operation costs, making our products uncompetitive in both the domestic and international markets. Regional economic bodies need to step into regional power generation and distribution in collaboration with states within each region. There is already a policy that allows for the generation of electricity by States and even the private sector. What is required is implementation. If Abia State can do it, why can other States like Lagos, Ogun, Kaduna, Kano, Anambra, Rivers and the FCT or the regional entities, do the same?Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. Power, in terms of electricity generation for production, either through the PHCN or the regular generators, remains expensive and takes a large chunk of the operation costs, making our products uncompetitive in both the domestic and international markets. Regional economic bodies need to step into regional power generation and distribution in collaboration with states within each region. There is already a policy that allows for the generation of electricity by States and even the private sector. What is required is implementation. If Abia State can do it, why can other States like Lagos, Ogun, Kaduna, Kano, Anambra, Rivers and the FCT or the regional entities, do the same?Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. Nigeria has fairly developed financial infrastructure to provide needed credits for the private sector to operate and expand their businesses. But government policies and borrowing activities often crowd out the private sector, negatively affecting production and expansion of businesses in the private sector. Government financial policies must provide for cheap credits with low interest rates, strengthen the capital market, and offer other financial incentives to encourage production and improve productivity in the private sector, and consequently expand employment opportunities. As I always point out, improved output via production expansion and increased productivity will lead to employment with resultant improvement in revenue from companies’ profits and personal income taxes from new entrants into the labour market.The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships. The management of the economy should go beyond borrowing opinions from abroad, like recommendations from the World Bank and IMF, but understanding how the domestic economy behaves or operates within the context of its internal fundamentals and consistency in relationships.