An economist, Prof. Sheriffdeen Tella, on Monday advised Nigerians not to expect much from the nation’s economy in the second quarter following continue delayed in the passage of 2018 budget.
Tella, a Professor of Economics from Olabisi Onabanjo University (OOU), Ago-Iwoye in Ogun, spoke in an interview with the News Agency of Nigeria (NAN) in Lagos.
According to him, the economy will not witness meaningful growth unless the budget is passed on time to complement the monetary policy to be introduced by the newly inaugurated Monetary Policy Committee (MPC).
“It takes time for implemented policies to have effect on the economy. Therefore, we should not expect much improvement in output of the capital market and the economy at large,” Tella said.
He said that the capital market was largely bearish in the first quarter of the year, while the economy remained sluggish in spite of positive indices.
“Both are symptomatic of an unsettled economy where government’s macroeconomic policy is unpredictable.
“This was so because both fiscal and monetary policies have not been put in place due to the perilous activities of the legislature.
“We can recall that up till now, the 2018 budget has not been passed.
“So, fiscal policy and fiscal actions were put on hold throughout the period.
“The Central Bank’s Monetary Policy membership committee was not properly constituted to meet and fashion out monetary policy due to failure of the legislature to approve new members submitted for consideration by the Executive.
“Where you have such situation, the policy environment cannot be conducive for business activities to thrive,” Tella said.
The President said that this would allow for implementation of the January to December budget cycle.