Trickle-Down Economics: Stimulating the Base

Chamberlain Peterside recommends a number measures to stimulate the fundamental base of Nigeria's economy.
"...It is quite realistic to recommend that Nigeria earmarks $5,0 billion of its foreign reserve for this purpose. Even after paying-off the foreign debt, Nigeria will still be left with substantial amount of money to sustain its current account status, support the currency market and tuck away some nest-egg for future generation. That is if subsequent governments don't steal it. Hypothetically, the $5,0 billion development fund could be deployed as follows:

1. Utilize $2,0 billion for infrastructure and power generation, to boost capacity to 10,000 – 20,000 megawatts over the next 5 years, electrify the rural areas and rehabilitate decaying road network and bridges nationwide.

2. Utilize $1,8 billion to create a Fannie Mae (US Federal National Mortgage Association) type housing fund to stimulate secondary mortgage market in Nigeria, guarantee home loans for low to middle income families and buy such mortgage notes from primary mortgage institutions (PMI).

3. Utilize $1,2 billion to fund agro and micro lending schemes, underwrite and guarantee loans to genuine micro businesses and mechanized farming organizations.

4. Utilize the $1,0 - $1,5 billion savings in debt service payment to target the lowest population segment and offer them social benefits that could translate into improved life-quality – basic education, primary health care, low cost housing subsidy, rural infrastructure etc..."