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The federal
government yesterday announced a projection of over 8 percent national
economic growth in the first quarter of 2011, even as it plans to
resuscitate, the Marketing Boards to help boost agricultural sector in
the country. The Minister of Information and Communication Labaran Maku
disclosed this yesterday while briefing journalists after the weekly
Federal Executive Council meeting, which was presided over by Vice
President Namadi Sambo, in the absence of President Goodluck Jonathan
who is currently in Turkey. Quoting from statistics by the Central Bank
Governor, Sanusi Lamido, which he supplied during his 2010 Fourth
Quarter Report presentation to FEC, Mr. Maku said the national growth
rate for the last quarter of 2010 was 8.29 percent. The growth, he
said, was largely sustained by improved performance in the non-oil
sector, particularly agriculture as well as the increasing availability
of electricity across the country which assisted in improving capacity
utilization from 25 percent to 29.65 percent, during the period.

“The Governor of
Central Bank of Nigeria briefed the Council on the performance of the
economy in the fourth quarter of 2010. The Council was informed that
there had been steady growth in the GDP which continues to be driven
largely by the non-oil sector, particularly agriculture,” he said.

Mr. Maku also noted
that the 2010 fourth quarter growth is an improvement from the 7.86 in
third quarter of 2010 while the CBN also projected a similar growth in
the first quarter of 2011 as capacity utilization in industries has
grown from 25 percent to 29.6 percent.

Agricultural boost

The non-oil sector
contributed 8.87 percent while the agric sector contributed about 40
percent with a positive projection. The minister further explained that
the positive outlook will be improved by the continued implementation
of the amnesty programme, stability in crude oil exports and
electricity supply to economic centers in the country. Still stating
the statistics, Mr. Maku said the CBN gave out N199.6 billion to 539
small and medium scale firms through a network of commercial banks and
which created 7,195 jobs within the period. He said although the
foreign exchange rate stabilized at N153 to the dollar, the CBN is
striving to keep the figure at N150 to the dollar as a step towards
shoring up the naira.

“Though there was
moderation in inflation, the governor cautioned that inflation remained
a major concern in the short to medium term, Interbank rates and other
money market rates, including lending, also moderate.

“The foreign
exchange market was substantially stable, while the steady recovery in
the capital market continued. The growth in monetary and private sector
credit aggregates, however, remained sluggish. The governor commended
the government for the reduction in the proposed level of expenditure
still remained high but that the general thrust of the fiscal policy
pronouncements was in the desired direction.”

The minister said
FEC also accepted in theory the resuscitation of marketing boards for
agricultural produce as proposed by the CBN governor, but with a
directive that the modalities and policy framework be worked out by the
apex bank for a possible approval Council at a later date.

He also said in
making its recommendations for the resuscitation of the marketing
boards, the CBN drew experiences from countries like Ghana and Tanzania
where marketing boards have boosted the economies by helping farmers
buy up excess farm produce which allow them to concentrate in crop
production and avoid losses.

He however
explained that “not all the boards dissolved may make a comeback but it
is expected that farmers will thence incur less losses while
agricultural productivity will be enhanced”, adding that “the idea
sounded well and FEC accepted it and directed that modalities and
proper policy framework for it be worked out”.