Renowned economist and Chief Executive Officer, Financial Derivates Company, Mr Bismarck Rewane has charged the federal government to re-engineer its economic policies, to positively impact the lifestyles of Nigerians, whose focus is now on basic necessities; an indication that the present economic plans, of the government, are not working.
Rewane made the appeal at the 2024 Mid-Year Economic Review and Outlook, organized by the Lagos Chamber of Commerce and Industry (LCCI), in Lagos.
Making a comparison between the state of the nation’s economy between 2014 and now, the Financial Derivates boss, in a paper, tagged: ‘Half-Year Economic Review and Outlook: Options for Government and Emerging Business Opportunities’, stated that, while discussions among Nigerians still centre around inflation and exchange rates, but such discussions around inflation had sunk a bit deeper.
“In 2014 discussions about inflation were around prices of motor vehicles, and other luxuries gradually getting out of reach, but today’s discussions are focused on survival and basic necessities, such as the price of garri, tomatoes, and other food items.
“If the quality of life of your dad is better than that of your grandfather, and yours is better than your father’s, and you think your children will live a better life than yours, then the economy can be said to be delivering. But what do we see now? Discussions, focusing on basic ingredients of life,” he stated.
Giving his appraisal of the administration’s performance in the past six months, Rewane noted that the government has not been able to meet most of its economic plans, mid-way into the year.
“The plan was to grow the economy by 3.76 percent, but what we are seeing here is an average growth of 1.79 percent, the exchange rate with which the budget was planned was N750, but now exchange rate is above N1,500; inflation projection was 21.4 percent, but presently it is 34.19 percent, and I can’t see us getting to 21.4percent, as projected by the end of the year,” he stated.
On fuel subsidy removal, Rewane charged the federal government to move beyond the ‘shallow’ conversation on the vexatious policy and come up with institutional reforms, that would enable it win Nigerians’ trust.
The Financial Derivates boss argued that, while removal of subsidy on fuel has become imperative, considering the volume of waste and corruption accompanying it, government, he added, must, however, deal with expenditure efficiency issues in the system.
One of the ways to intensify such discussion, he added, should be for government to be transparent about the amount realized from the exercise, and how such funds are being expended.
This, the renowned economist believed, would allow Nigerians to know the amount of money realised from the exercise, and how such funds are being deployed to better their lots.
“It is one thing to earn money, and it is another to ensure such earnings are properly deployed. Revenue not well spent, wasted or stolen, cannot translate into growth. That is why discussion here that subsidy is gone is rather shallow. It must go beyond that. There is the need for institutional reforms that go deeper, because if you don’t go deeper you are guaranteeing the next kidnapping, theft, robbery and other social vices,” he stated.
Rewane also predicted that the next one year may witness divestments and investments in the nation’s corporate space, but counseled investors on the need to do their feasibility studies to ascertain where and how such funds would be disbursed.
The President, LCCI, Gabriel Idahosa, while advising the federal government on indiscriminate introduction of levies, stated that the introduction of the now suspended digitalized Central Motor Registry (e-CMR), did not portray the government as being sensitive to Nigerians’ plights.
“Nigerians are already over-burdened. Indiscriminate introduction of levies, such as this, shows insensitivity, but we believe governance should be about the people,” he stated.
The LCCI boss explained that the Mid-Year Economic Summit was designed to review key policy developments and macroeconomic performance in the first half of the year.
“It also discusses the outlook and expectations for the second half, focusing on risks and opportunities,” he added.
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