Rewane Backs Subsidy Removal, Seeks Proper Utilisation Of Funds

Managing Director/ Chief Executive Officer, Financial Derivative Company Ltd., Bismark Rewane, has  supported  the Federal Government’s removal of petrol subsidy.

Rewane, however, called for proper utilisation of the funds.

Rewane spoke  at the Environmental, Social and Governance (ESG) workshop organised by the Securities and Exchange Commission, in collaboration with the Financial Centre for Sustainabilities, Lagos.

Tbe event held yesteday in Lagos.

He said the policy change was inevitable.

Rewane said that the funds should be well-channelled to spur economic activities.

He said that Nigeria was in dire need of institutional reform as the next step to achieve economic stability and growth.

Rewane said the negative impact of policy change would be more pronounced on economic growth in the third quarter of 2023, adding that Nigeria’s growth in 2023 would be projected at 3.1 per cent.

He added that headline inflation might climb toward 24 per cent, saying that disposable income would decline as inflation would soar.

Rewane spoke on: “ESG and Sustainable Finance Framework – Opportunities in the Nigerian Capital Market.”

He said that implementation of reforms had improved confidence in the capital market.

According to him, Nigerian capital market growth will be supported by privatisation and government sale of assets.

He added that the capital market might witness listing of companies in the upstream petroleum industry such as Nigeria National Petroleum Company Ltd., Shell Nigeria and Chevron Nigeria, as well as currency convertibility.

Rewane said that increased activities and volatility in the capital market would spur large gains and losses and reduce abuse of market laws.

He emphasised that the economy should be run by credible and competent individuals to sustain growth and development.

On monetary policy and effective interest rates, Rewane said that the Central Bank of Nigeria had de-emphasised orthodox monetary policy in its commitment to aggressively pursue inflation target.

He said there had been effective exchange rate management, increase in interest rate and less fiscal deficit monetisation.(NAN)