Ilorin, March 20, 2020 (NAN) Mrs Oluwafunke Adewumi, the Kwara State Coordinator, Raw Material Research and Development Council (RMRDC), has called on the Federal Government to tap into abundant mineral resources to grow Nigeria’s economy.
Adewumi made the appeal in Ilorin on Friday in an interview with the News Agency of Nigeria ( NAN).
The coordinator said the Nigeria’s resources was enough to transform the country’s fortune if properly managed.
She said minerals are significant resources for human life and could significantly contribute to the economic progress of the country, if properly utilised by the government.
“Nigeria is blessed with crude oil, natural gas, coal, iron ore, tin and rare metals such as tantalum, Niobium and other rich resources.
“With the available abundant resources, we can compete with the giant nations in the world if properly utilised.
“Time for the Federal Government to set up an expert team to plan on best way to get the best of Nigeria mineral resources for use.
“Nigeria has enough talc deposits. The extraction of huge talc deposits can satisfy local and export needs. Our mineral resources is enough to end our struggle as a nation.
“Imagine crude oil provides the Lion’s share of Nigeria revenue. What are we doing with it? We need to tap into it and become the envy of the world,” she said.
The coordinator also advised members of the public to desist from wasting available resources by cutting down trees in the bush for selfish interest.
She also called on the federal government to prioritise annexing mineral resources for local use in industries and as foreign exchange. (NAN)
Lagos, Feb. 3, 2020 (NAN) The Nigerian Stock Exchange (NSE) says securities lending will witness exponential growth with the elimination of tax on manufactured dividend arising from securities loan transaction by the Finance Act.
Mr Oscar Onyema, NSE’s Chief Executive Officer, made the assertion at a symposium on the Finance Act, organised by the exchange in partnership with KPMG in Lagos.
Onyema said an exponential growth in securities lending activities would further boost market liquidity, given the elimination of tax on manufactured dividend arising from securities loan transaction.
Securities lending is the act of loaning a stock, derivative or other security to an investor or firm. Securities lending requires the borrower to put up collateral, whether cash, security or a letter of credit.
When a security is loaned, the title and the ownership are also transferred to the borrower.
The NSE’s boss explained that the multiple taxation embedded in securities lending business arrangement had slowed down its adoption in the Nigerian capital market despite being a 2.44 trillion dollars market globally.
According to him, there have been some improvements with 20 million units of shares currently available for lending in the Nigerian capital market.
“The recent amendment to the tax laws by the Finance Act 2019 is in line with global best practices for Securities Lending.
“And, I want to seize this opportunity to enjoin capital market operators and asset owners to take advantage of the benefits,” Onyema said.
He said the elimination of double taxation in Collective Investment Schemes (CIS) including Real Estate Investment Structures as pronounced by the Act would have significant impact on the growth of the currently nascent $2.77 billion asset management industry in Nigeria.
“We have convened committees and conferences to dimension the real estate industry and the necessary policy changes required to jump-start financing into the sector.
“So, this positive policy announcement is a good start towards increasing the viability of REITs for issuers and investors.
“With the nation’s housing deficit put at 17 million units as estimated by the African Development Bank, I believe strongly that REITs and other real estate investment vehicles will play a critical role in funding real estate and infrastructure development in Nigeria.’’
Onyema added that exemption of micro and small enterprises with an annual turnover of N25 million ($70,000) or less from paying company income tax by the Act aligned with the Exchange’s commitment to SMEs.
According to him, SMEs and growth companies in our ecosystem can now enjoy tax benefits, thereby improving their operational efficiency.
He noted that the signing of the Finance Bill into law was a landmark achievement for the Nigerian Capital Market.
Onyema said the NSE, the Securities and Exchange Commission (SEC) and other capital market stakeholders had been at the forefront of advocacy with policy makers and tax authorities for favourable tax structures in the Nigerian capital market.
Also speaking, Mr Wole Obayomi, Partner & Head, Tax, Regulatory and People Services, KPMG, said, “Finance Act 2019 is a landmark legislation that should be embraced by all stakeholders to ensure it achieves its laudable objectives.
Obayomi said removal of multiple tax footprints for securities lending and real estate investment schemes would stimulate activities in those segments of the market.
He stated that the generous incentives for SMEs in the Finance Act coupled with the launching of the Growth Board for capital raising by that sector from the NSE, were timely interventions.
According to him, these will drive the growth of the economy through the SMEs.
Also, Mr Ikechukwu Ene, Senior Manager, Tax, Regulatory and People Services, KPMG Nigeria, speaking on the implications of the Act to Nigerian corporates, financial markets and economy, said people needed to study the Act to understand it better.
Ene highlighted essential areas in the Act for additional revenue generation as VAT increment, from five per cent to 7.5 per cent, changes in excise duty and global tax reforms, among others.
On global tax reforms, he said that Nigeria had realised that it was important to follow global trends in global tax. (NAN)
We need to support Buhari’s effort to grow economy – Sajoh
By Yakubu Uba
Support
Yola, Oct. 28, 2019 (NAN) Mr Ahmad Sajoh, a Board of Trustee Member of Mindshift Advocacy for Development Initiative, a Lagos based NGO, has urged all stakeholders to support President Muhammadu Buhari’s efforts to improve the economy.
Sajoh, also a former Commissioner for Information and Strategy in Adamawa, made the call on Tuesday in an interview with newsmen in Yola.
He said that the support became necessary as part of sacrifice for the needed change.
Sajoh said measures like the closure of border and the move to borrow money from World Bank to improve power supply were some of the hard decisions recently taken to improve the economy.
“Nigerians need to know that Nigerian Government signed Africa Free Trade agreement and not free smuggling agreement that will deprive it of legitimate revenue and continue to do incalculable damage to our local agricultural production,’’ Sajoh said.
On the concern on debt burden over World Bank loan to boost power supply, Sajoh said Nigeria was not among the most indebted countries in the world and borrowing to fund power that was needed to boost the economy should be supported.
“When you have a steady power supply you are going to have multiplier effect, the power will ginger economic development at all levels.”
He also noted that the recent World Bank ranking of Nigeria as one of the top 10 most improved economies in the world showed that the administration was taking the right steps and deserved the support of all Nigerians.
Sajoh also lauded the formation of a team by the office of the Senior Special Assistant to the President on Policy Development and Analysis, to be holding monthly policy dialogue with key stakeholders on funding government programmes.
“The stakeholders are to help advise government on how to procure funds for some of its programmes.
“There is need to engage in a robust public engagement to enable the public understand the benefit of increase funding in the hands of government,” Sajoh said. (NAN)
YMU/ASS/MST
Edited by Saidu Adamu/Muhammad Suleiman Tola
Buhari inaugurates, sets agenda for Economic Advisory Council
By Ismaila Chafe
Agenda
Abuja, Oct. 9, 2019 (NAN) President Muhammadu Buhari on Wednesday administered oaths of office on members of the newly constituted Presidential Economic Advisory Council (PEAC).
Inaugurating the 8-man council at the presidential villa, Abuja, Buhari set an agenda of what they should accomplish in the shortest possible time.
The president at a meeting with the council chaired by Prof. Doyin Salami charged them to focus on developing reliable data that would properly reflect what is happening in the country.
Buhari described the task before the PEAC as “most important national assignment’’.
“As you develop your baseline study, I would like you to focus on primary data collection. Today, most of the statistics quoted about Nigeria are developed abroad by the World Bank, IMF and other foreign bodies.
“Some of the statistics we get relating to Nigeria are wild estimates and bear little relation to the facts on the ground.
“This is disturbing as it implies we are not fully aware of what is happening in our own country.
“We can only plan realistically when we have reliable data. As you are aware, as a government, we prioritised agriculture as a critical sector to create jobs and bring prosperity to our rural communities.
“Our programmes covered the entire agricultural value chain from seed to fertiliser to grains and ultimately, our dishes.
“As you travel in some rural communities, you can clearly see the impact. However, the absence of reliable data is hindering our ability to upgrade these programmes and assure their sustainability,” he said.
The president also used the occasion to set agenda and expectations from the council, constituted on Sept. 16, to replace the Economic Management Team (EMT).
On the Social Investment Programmes (SIPs), the president told members that his administration was working to measure the impact of the programme targeted at improving the well-being of millions of poor and vulnerable citizens.
To this end, Buhari said he had directed the new Minister for Humanitarian Affairs to commence a comprehensive data-gathering exercise in all Internally Displaced Persons (IDP) camps in the North East.
He said: “Today, we hear international organisations claiming to spend hundreds of millions of dollars on IDPs in the North East. But when you visit the camps, you rarely see the impact.
“In 2017, when the National Emergency Management Agency took over the feeding of some IDPs in Borno, Yobe and Adamawa, the amount we spent was significantly lower than the claims made by these international organisations.
“Therefore, actionable data is critical to implement effective strategies to address pressing problems such as these humanitarian issues.
“I, therefore, look forward to receiving your baseline study as this will help us shape ideas for a sustainable and prosperous future,’’ the president said.
On his expectations from the council, Buhari urged them to proffer solutions on how to move the country and economy forward.
He directed the council to coordinate and synthesise ideas and efforts on how to lift 100 million Nigerians out of poverty in the next 10 years, working in collaboration with various employment generating agencies of government.
“I am told you worked throughout last weekend in preparation for this meeting.
“I have listened attentively to findings and ideas on how to move the country and the economy forward.
“Yes, Nigeria has exited the recession. But our reported growth rate is still not fast enough to create the jobs we need to meet our national ambition of collective prosperity.
“Reason being we had to tread carefully in view of the mess we inherited.
“Many of the ideas we developed in the last four years were targeted at returning Nigeria back to the path of growth.
“I am sure you will also appreciate that during that time, our country was also facing serious challenges especially in the areas of insecurity and massive corruption.
“Therefore, I will be the first to admit that our plans were conservative. We had to avoid reckless and not well thought out policies.
“However, it was very clear to me after we exited the recession that we needed to re-energise our economic growth plans. This is what I expect from you,” the president said.
Buhari also assured the council that the Federal Government would ensure that all their needs and requests were met before the next technical sessions in November.
He said all key ministries, departments and agencies would be available to meet and discuss with them on how to collectively build a new Nigeria that caters for all.
“Now, no one person or a group of persons has a monopoly of knowledge or wisdom or patriotism.
“In the circumstances, you may feel free to co-opt, consult and defer to any knowledgeable person if in your opinion such a move enriches your deliberations and add to the quality of your decisions,” Buhari said.
The chairman of the council said the mandate was about “Nigeria first, Nigeria second, and Nigeria always,” adding that it is about Nigerians, not as numbers, but as people.
“Our goal is that the economy grows in a manner that is rapid, inclusive, sustained and sustainable, so that Nigerians will feel the impact,” Salami said. (NAN)
SYC/IAA/MST
Edited by Isaac Aregbesola/Muhammad Suleiman Tola
Ms Kathleen FitzGibbon, , Chargé d’Affaires, U.S. Embassy, Abuja, Nigeria, at a two-day Intellectual Property (IP) Symposium in Lagos with theme:“The Bane of Counterfeit Pharmaceuticals and Piracy: Building Respect for Intellectual Property Rights as a Strategic Resource for Economic Growth”, on Monday Sept. 16, 2019. (NAN Photo)
By Vivian Ihechu
Lagos, Sept. 16, 2019 (NAN) The U.S. Mission in Nigeria, the American Business Council and other partners in government and private sector have said that proper harnessing of Intellectual Property Rights will encourage Nigeria’s investment climate and grow the economy.
They spoke at a two-day Intellectual Property (IP) Symposium in Lagos on Monday with the theme:“The Bane of Counterfeit Pharmaceuticals and Piracy: Building Respect for Intellectual Property Rights as a Strategic Resource for Economic Growth”.
The World Trade Organisation says Intellectual property rights are the rights given to persons over the creations of their minds.
Ms Kathleen FitzGibbon, Chargé d’Affaires, U.S. Embassy, Abuja, said intellectual property rights protection is important as it enables the innovation and creativity needed to bolster economic growth.
According to FitzGibbon, strong intellectual property rights protection is essential to creating jobs and opening new markets for goods and services.
She said: “This is not just an American issue, this is a global issue.
“And as Nigeria moves ahead with goals of diversifying and shifting to a knowledge-based economy, a strong intellectual property rights regime will help attract investment and protect Nigerian ideas and Nigerian businesses.’’
She urged stakeholders, government, consumers and businesses to join forces in ensuring the protection and enforcement of intellectual property rights.
Also, Ms Tanya Hill, said with proper harnessing of IP, Nigeria stands ready to grow its economy along with the rest of the world.
Hill, is the International Computer Hacking and Intellectual Property (ICHIP) Attorney Adviser, Sub-Saharan Africa, U.S. Department of Justice (USDOJ)/Office of Overseas Prosecutorial Development and Training (OPDAT).
“Investments in IP are growing rapidly in the global economy, often exceeding investments in traditional property such as machinery, equipment and real estate.
“A strong intellectual property regime will further bolster Nigeria’s investment climate as Nigeria stands ready to grow its economy along with the rest of the world,’’ she said.
She added that IPR protection affects commerce throughout economies.
“Nigeria is the most populous country on the African continent, peharps, her greatest assets is her innovation, ingenuity and creativity of her people, her global influence manifests through Nollywood movies, music, books, art and technology.
“IPR provides incentives to invent and create, protects innovators from unauthorised copying; creates platform for financial investments in innovation; supports startup liquidity and growth through mergers, acquisitions and IPOs.
“It makes licensing-based technology business models possible and enables an efficient market for technology transfer and trading in technology and ideas.
“Strong IPR protections foster growth and creativity within Nigeria.
“These IP protections and enforcement are to the Nigerian creative, pharmaceutical and industrial sectors and their impact on the diversification of the Nigerian economy,’’ Hill said.
Prof. Adebambo Adewopo, an intellectual property scholar and the IP Chair, Nigerian Institute of Advanced Legal Studies, said the role of IP had been multidimensional.
Adewopo, who delivered the keynote address, said IP cuts across many productive sectors of the economy and development disciplines.
According to him, IP also promises to assist in harnessing the enormous human resources that abound everywhere and in every field of human enterprise.
“In Nigeria, we often speak of the rich human resources as one of our greatest natural endowments.
“In reality, the resources in context should be referring to knowledge assets that are the products of creativity and innovation that constitute the hidden wealth of nations today.
“IP system without doubt remains the primary policy and legal infrastructure of innovation and the singular currency of the digital economy.
“IP has never been more economically and politically important than it is today, particularly in the multidimensional drive towards development.
“ More than before, the global IP system has assumed increasing complexity which in itself calls for a better understanding of the dynamic interaction between IP systems and sustainable development goals.’’
Adewopo also harped on the need for Nigeria to be committed to a national IP policy as a mechanism for improved development.
The News Agency of Nigeria (NAN) reports that a highlight of the ceremony was a performance by students of the Caro Favoured Schools of Ajegunle.
Their drama sketch was designed to raise awareness among Nigerian consumers on the importance of trademarks, brands and the dangers of counterfeit products. (NAN)
VIV/PDE
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(Editing by Peter Ejiofor)
By Muhammad Nur Tijani
Partnership
Kano, Aug. 14, 2019 (NAN) The President of the Republic of Guinea, Prof. Alpha Conde, has solicited closer and stronger economic ties between Kano and Guinea.
Conde made the call in Kano during a special business session with Gov. Abdullahi Ganduje and the Kano business community at the Government House, Kano, on Wednesday.
This is contained in a statement signed by the Chief Press Secretary to the governor, Mr Abba Anwar.
The president assured the business community that they would always be ready to welcome Kano businessmen for investment opportunities in his country.
“Being brothers coming from Africa, you would surely have no problem at all in harnessing the abundant investment opportunities in our dear country,” the statement said.
According to the statement, Conde who said that his country has effective ease of doing business environment, assured that since his assumption as President of the Republic in 2010, he has been doing his best to see that all odds against transparent, smoother and healthier economy were eliminated.
Earlier, Ganduje assured the Guinean president that Kano State Government was ready and determined to work closely with the Republic of Guinea to leverage each other’s strength to mutual benefits.
The statement quoted Ganduje as saying that the door of his government are always opened to the great country of Guinea.
“We welcome your new innovations and suggestions on how we can partner with Guinea in all facets of development especially investment opportunities in both countries.
“I am indeed particularly delighted by Your Excellency’s passion and expressed commitment to hold discussions between your delegation and members of our business community in Kano on various investment opportunities in the Republic of Guinea among other related issues.
“The strength and relevance of Kano business community in economic development, both within and outside Nigeria, today constitutes an important and unique force in Nigeria and the World in general.
“In the past couple of decades, it has grown into an energetic and confident community that has accorded Nigeria a good stand-in many parts of the World.
“It is our pride to state that today, the richest black man in the World is a native of Kano in the person of Alhaji Aliko Dangote, GCON,” the statement read in part.
The Emir of Kano, Malam Muhammadu Sanusi II, while appreciating the move for such economic ties between Kano and Guinea, encouraged the economic integration.
The first class traditional ruler noted that such collaboration could help in preventing Africans from migrating to other parts of the world, particularly Europe and other developed states in search of greener pasture.
“We must, as people try and see that this and similar initiatives see the light of the day. Emphasis should be more on Africa to Africa investment, than Africa to other places. Through this, we can make a significant impact on fighting poverty,” the statement quoted Sanusi saying.
Those who attended the forum were representative of Dangote Group of Companies, Mr Mansur Ahmed; Alhaji Tajuddeen Dantata represented Dantata Group of Companies, and Alhaji Nafi’u Isyaka Rabi’u represented BUA Group of Companies.
Also in attendance were the Chairman Azman Air, Alhaji Abdulmanafi Sarina; the Executive Chairman of Ultimate Gas, Alhaji Auwalu Ilu; Executive Vice Chairman of Nigeria Communication Commission (NCC), Prof. Umar Garba Dambatta; and the Accountant General of the Federation, Mr Ahmed Idris.
Ministers designate from Kano state, retired Gen. Bashir Salihi Magashi and Alhaji Muhammad Sabo Nanono, among other dignitaries, witnessed the event. (NAN)
MNT/MST
Edited by Muhammad Suleiman Tola
Ilishan-Remo (Ogun) April 9, 2019 (NAN)An accounting expert, Prof. Ishopa Akintoye, has called for the incorporation of sustainability accounting into financial reporting in the country.
Akintoye made the call during the 28th Inaugural Lecture of Babcock University, Ilishan-Remo, titled “Accounting: A Mismanaged Concept Requiring Urgent Redefinition”.
Akintoye, a professor of Strategic Financial Accounting at Babcock, said that the current financial reporting system in the country was inadequate in addressing the strategic earnings of corporate and individual entities.
According to statement by the university’s Spokesman, Suleiman Joshua, Akintoye noted that the efficiency of such reports will impact greatly on sustainable financial reporting.
“The past conceptual framework for the definition of accounting cannot be adequate in driving accounting in the contemporary times if efforts are not made for an urgent redefinition of accounting.”
He added that he was part of a team of accounting experts developing a new accounting model named ‘Sustainability Accounting’ to paper over the cracks in the sector.
According to Akintoye, this will go beyond the current assumption of stability and growth by factoring in realistic economic, environmental and social indices.
He noted that the team was leveraging on Global Sustainability Index which had been developed for countries of the world to provide direction for government, private sectors and individuals.
He said this would serve as targets for all activities to be achieved in 2030.
“An efficient sustainable financial report would enhance decision-making of the total stakeholders and address the growing concerns of the business world as well as that is the society in general.”
The don also recommended inclusion of strategic accounting and sustainability accounting in the Accounting curriculum at every level of education by the Federal Ministry of Education and the National Universities Commission.
He also expressed the need to include human and environmental assets in the venture capital manifest during business commencement, in evaluation of the strengths and weaknesses of a company.
“Government in all countries should insist on corporate entities through their local regulatory agencies that environmental cost and human capital be revealed in their statement of financial position for public consumption,” Akintoye said. (NAN)
TDS/VIV/WOJ
Economy
By Temitope Salami
Ijebu-Ode (Ogun), Jan. 21, 2019 (NAN) Dapo Abiodun, the All Progressives Congress (APC) governorship candidate in Ogun, has pledged to boost the socio-economic development of the state if elected.
Abiodun made the pledge on Monday in Ijebu-Ode during his ward-to-ward campaign.
He expressed his determination to introduce policies that would address the yearnings of the people and ensure equal distribution of wealth.
Abiodun said poverty and lack of infrastructure were threats to the nation’s corporate existence and urged the people to support him in his quest to take the state to its next level.
“The Olokola Free Trade Zone at Ogun Waterside will be resuscitated when we mount leadership as we look to woo more investment into the state to revamp our revenue base.
“Public infrastructure to meet our demands is non-existent, there are no good roads, especially in the hinterlands and we want to address this.
“Your sufferings are about to end as we know your pains and we will do all we can to give you the good life you deserve,” he said.
Abiodun, a native of Iperu in Ikenne Local Government Area of Ogun, promised to work with all arms of government to ensure massive socio-economic development.
He said that mutual political understanding between the legislative and executive arms of government would pave the way for development while the masses would have a sense of belonging.
The oil magnate further said that the electorate would truly access the dividends of democracy if the three tiers of government adhered strictly to their constitutional responsibilities.
He called on politicians to demonstrate political maturity in ensuring smooth and peaceful conduct of the electoral processes.
While commending the efforts of security agencies toward maintaining peace, Abiodun advised them to provide a level playing ground for smooth conduct of the elections.
He warned security agencies against being partisan to enable the electorate to elect leaders of their choice.
Abiodun also promised to use his office, if victorious in the March 2 poll, to attract federal presence to the state in terms of infrastructure.
The APC flagbearer, who urged the people of the state to vote en-masse for the party’s candidates in the polls, also urged them to obtain their Permanent Voter Cards before the Feb. 8 deadline set by INEC. (NAN)
TDS/AO/OJO
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(Edited by Angela Okisor/Mufutau Ojo)
Financial expert urges NASS to pass Nigeria Mining Commission Bill
By Mustapha Sumaila
Mining
Abuja, Dec. 9, 2018 (NAN) A financial expert, Mr Tony Edeh, has urged the National Assembly to pass the bill establishing Nigeria Mining Commission into law to facilitate the diversification of economy, driven by the present administration.
Edeh, the Managing Director of Norrenberger Financial Group, made the call in an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday.
Norrenberger is an Integrated Financial Services Group that operates a customer-focused business model, offering clients a comprehensive range of financial products and services.
This includes Funds and Investment Management, Structured and Alternative Finance, SME Funding, Foreign Exchange and Business Advisory Services.
He explained that the bill had been in the National Assembly awaiting passage and when it was passed into law; and the commission was in place, the revenue from the mining sector would be boosted.
He said that President Muhammadu Buhari’s led administration should put forth its political might to ensure that the bill was passed into law.
The expert also advised the Federal government to sign Memorandum of Understanding (MoU) with state governments where these minerals were deposited to jointly explore while royalty would be paid to the central government.
He added that the state governments would also be realising their Internally Generated Revenue (IGR) from the sale of these natural resources.
According to him, host communities must be carried along too to avoid being neglected.
Edeh enjoined Federal Government to encourage local Miners to form cooperative societies that would give them legal backing to engage more in the business.
He lauded the present government’s effort for its anchor borrower scheme, saying that it had employed more youths in farming and other entrepreneurial activities.
“Rice mills are springing up as a result of incentives from government. This has encouraged more people to go into rice farming specifically.
“The present government has also supported initiatives in the ICT by giving out small credit facilities to best ICT solution based application to expand their businesses,” he noted.
The expert explained that the Nigerian economy could be classified broadly into the oil and non-oil sectors.
According to him, growth in the second quarter in 2018 was driven by developments in the non-oil sector as service sector recorded its strongest positive growth since 2016.
He said that the non-oil sector grew by 2.05 per cent in real terms during the quarter in review, mainly driven by Information and communication services, construction, agriculture, transportation, storage and other services.
“It is clear that no economy grows while depending on a single source of income, different sectors of the economy are expected to contribute to the overall GDP of a country before a meaningful growth can be achieved.
“Nigeria has depended on oil for too long and it is time to begin to look at other sectors of the economy that needs to be developed in order to earn more money and expand the economy,” he said. (NAN)
MS/MST
Edited by Muhammad Suleiman Tola
Agbakoba urges strong fiscal policy in revamping nation’s economy
By Sandra Umeh
Economy
Lagos, Nov. 20, 2018 (NAN) Former president of the Nigerian Bar Association (NBA), Dr Olisa Agbakoba, on Tuesday called for the introduction of a vibrant fiscal, trade and monetary policies to boost the country’s economy.
He made the appeal while fielding questions from newsmen in Lagos, on “Practical Solutions to some of Nigeria’s Economic Challenges”.
Agbakoba said that the first step in any ailing economy is a diagnosis of its main problems, before workable solutions are preferred.
He noted that although Nigeria had experienced economic setbacks over the years, “there was no time to lament but to chart a clear economic policy direction, which will give value to the economy”.
On monetary policy, Agbakoba underscored the need for harmonisation between the Central Bank of Nigeria (CBN) Policy, and the Minister of Finance’s call for increased public spending on capital projects.
“Note that the CBN increased the MPR by 200 basis point, from 12 per cent to 14 per cent, to combat inflation and stimulate growth.
“The MPR is the anchor rate at which the CBN in performing its role as lender of last resort lends to Deposit Money Banks, to boost the level of liquidity in the banking system.
“If the apex bank intends to increase the level of liquidity in the economy, it reduces the MPR, but increases it when it intends to tighten money supply and by tightening MPR, it has unfortunately, tightened lending,” he said.
According to Agbakoba, the banking sector requires strengthening, and must be empowered to lend.
“I recommend that money from the Treasury Single Account should go back to the banks at single digit rates, and that bank’s recommended lending rates should not exceed five per cent.
“I feel that the CBN should focus on productive value of the economy and not the numerical value of the Naira; the recent devaluation of the Naira by introduction of a floating Naira exchange rate has not yielded positive results as we see the Naira spiralling downward,” he said.
He said that in preferring a solution to this, government’s monetary policy will be required to move from strict monetarism of the “Mitton Friedman School of thought to the Keynesian Model”.
Agbakoba expressed optimism that the nation can recover from recession, and also recommended as a start, the need for a presidential proclamation at the National Assembly, switching from austerity policy to growth policy.
He said this would instil hope and form the basis for a way forward. (NAN)
UNS/MST
Edited by Muhammad Suleiman Tola
