Private sector operators have charged the federal government to sustain its targeted interventions in selected critical sectors, such as; agriculture, manufacturing, and export infrastructure, tackling insecurity and freeing more money from subsidy payments.
The experts, who stated this yesterday, in commemoration of Nigeria’s 64th Independence Anniversary today, stated that, though, several policies have been introduced, but the pace of implementation is slow.
On its part, the president of Lagos Chamber of Commerce & Industry (LCCI), Gabriel Idahosa said, the 25 years of uninterrupted democracy in Nigeria has earned the country enormous goodwill as one of the few stable democracies in Africa even as he called for strengthening of the nation’s democratic roots in the face of emerging challenges that pose risks to democracy in Nigeria.
He pointed out that “the quality of the business environment remains a source of concern to investors, especially in the real sector. Weak infrastructure, uncertain policy environment, and institutions have continued to adversely affect many economic enterprises’ efficiency, productivity, and competitiveness. These conditions pose a significant risk to job creation and economic inclusion across sectors.”
He urged the government to tackle oil theft to earn more foreign exchange, borrow from cheaper sources to reduce the burden of debt servicing and take a decisive step towards removing fuel subsidies.
“Beyond achieving economic growth, the government must redesign the models of running our healthcare service delivery and education in order to improve our Human Development Index (HDI). We recommend a model that allocates more funding for the education and healthcare sectors. At the same time, the private sector operators need a well-regulated business environment that allows only the best quality providers to operate in these sectors,” he noted.
Similarly, the head, Financial Institutions at Agusto & Co, Ayokunle Olubumi noted that, in the last one year, the performance of the Nigerian economy has been a mixed bag.
According to him, some structural challenges such as the subsidies on petrol and energy are being tackled, even as there has been significant improvements in the foreign exchange market.
To him, “Various initiatives have been introduced to strengthen confidence in the Banking sector. However, the sequencing of the policies, pace of implementation, inadequate communication, among others have moderated the performance of the economy management team.
“Thus, inflation remained at historic high, despite some respite in the last two months while GDP growth remained subdued. Despite the surge in the FAAC allocation, the economy is yet to feel the impact. Similarly, the cushion needed to moderate the adverse impact of the economic structural reforms are practically not existing.”
On his part, Chief Executive of Economic Associates (EA), Ayo Teriba, whilst noting that the country has not grown in dollar terms, stressed the need for the government and the Central Bank to build up the country’s reserves which has been the underlying problem of the country.
According to him, “inadequate reserve levels is a major issue that is to be addressed.“Nigeria’s problem is that as we arrive at the 64th anniversary we are in a situation of inadequate external liquidity that is throwing domestic variables such as inflation and growth rate that are dear to us into a tailspin .
“The misery index for the country is rising, inflation is at an uncomfortable level with food inflation at 40 per cent and interest rate at 40 per cent at the banks. Another variable that leaves us uncomfortable is the growth rate of the economy which is not growing at all if we measure it in dollars.
“We had a measly two to three per cent growth if we measure it in naira , but if we measure it in dollars, those values have reversed. If we convert the real GDP into dollars there is no growth. Our real GDP has collapsed from about $800 billion 10 years ago to $350 billion today and if we are not careful, by the end of this year, it might be $250 billion.
“The CBN is doing everything else but recruiting reserves. The government has to recognize that instead of tightening the interest rate or raising cash reserve requirements of banks, instead of telling banks to raise capital to levels that will support the economy of $1 trillion, we should first rebuild the country’s reserves itself to a level that will support an economy of $1 trillion.
“$37 billion in reserves is not going to support an economy of $350 billion rather it will undermine it much less an economy of $1 trillion. So the government and the central bank have to work together to rebuild reserves. And to rebuild our reserves they have to fall back on national assets.”
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