The Nigerian economy requires immediate and urgent intervention towards sustainable and inclusive growth. Any meaningful economic recovery must re-establish growth in purchasing power, restore demand and consumer spending and ultimately create new capital. The SDP will pay critical attention to the economy, as the economy is directly proportional to the livelihood and welfare of Nigerians. The SDP will seek a departure from the current economic models that stiffle growth and move towards an expansionary economic model that will return the economy to a sustainable growth path. This will be achieved through the overhaul of the current fiscal and monetary policies and the implementation of the party’s economic policies that will promote real sector development and growth, driven by investments, production and stable macroeconomic regimes.
The vision of SDP Government for the sector
SDP vision is to foster a progressive, productive and people-driven national economy transition that is inclusive, sustainable and pro-growth.
The New Economic Direction
The SDP government will replace the present dysfunctional Fiscal Responsibility Act which
is narrow and has prevented the country from implementing a broad-based long-term
planning and growth with the Fiscal Expansionary Act [FEA]. This fundamental new
economic policy direction of the SDP will engender sustained economic growth and
enthrone a more broad-based and inclusive economy.
Recent economic nominal figures have shown that the Fiscal Responsibility Act of 2007 is
unable to ensure sustainable economic growth and development over time. Consequently,
the Nigerian economy has been vulnerable to international shocks and commodities
volatilities. Evidently, this is why Nigeria has little to show for its huge oil revenues and made
long-term planning impossible.
The Fiscal Expansionary Act (FEA), when in place will not only promote high economic growth but also foster all-inclusive growth.
In nominal terms, Nigeria’s fiscal expenditure is grossly low in ratio to its GDP, especially
when compared to similar peer economies. This essentially makes the case for Nigeria to
engage in a high fiscal spending model, particularly given that the country has the highest
infrastructure deficit among peer economies.
The FRA essentially replicates ‘fiscal austerity’ for capital expenditure whereas big
government is driven by expansive recurrent expenditure, which seems to trigger
expensive domestic debts and high level of poverty experienced in Nigeria in the midst of
over $600 billion in oil revenue during the decade.
Over the years, it has remained a dependable political platform. It is the only political party that has won a national election that cut across ethnic, religious, cultural and other divides