As the administration of president Bola Tinubu begins its second year in office, some stakeholders have suggested ways of moving the economy forward for inclusive growth that would positively affect the citizens.
According to the stakeholders, including, Aminu Gwadabe, national president of the association of Bureau De Change Operators of Nigeria,(ABCON), Damilare Asimiyu, Macroeconomic Strategist, Afrinvest Consulting Limited, among others, there is need for synergy and harmonization of the various economic committees like Economic Management Team,(EMT, Economic Management Team Emergency Task Force(EMTTF) and Presidential Economic Coordination Council (PECC) for effectiveness and positive impact that could turn the fortunes of the country for better.
The need for independence while ensuring efficiency of the anti-money laundering (AML) and combating the financing of terrorism policies aimed at preventing financial crimes and terrorism financing.
Responding to metrobusinessnews.com (MBN) inquiry as to why the economy is not making the much desired progress judging from some economic indicators, Asimiyu said, “Based on constitutional powers, every buck stops on the President’s desk. But based on Nigeria’s convention, which is also a practice in some developed economies, the Vice-President heads the economic team, providing the President with updates on the planned actions and strategies of the team and getting his buy-in. We have also had situations in which the President appointed a coordinating Minister of the Economy, just like what former President Jonathan did when he appointed Dr. Mrs. Okonjo Iweala in 2011 as Coordinating Minister of the Economy (the same role was given to Mr. Wale Edun, now). But what is more important in whether the economic team would succeed or not is the development blueprint of the administration in power; the institutions to deliver on the set goals; and the political will of the President to deploy necessary resources and state power as at when due. In the case of Nigeria, the last two items in the success equation are weak or missing completely. That is why the economy is where it is currently. So, the President would still be held responsible for the current state of the Nigerian economy, as he would also be the one to be praised if things go right. Most people do not know who was late General Murtala Muhammed’s deputy or economic minister, but people around that time would talk about the impact his administration had on their lives. So, it is time for the Tinubu’s administration to write its own history too.”
Gwadabe, noted that for respite to come to the nation’s foreign exchange market for the price discovery of the local currency, there must be enough buffers to sustain it adding that the current efforts may not yield the desired goal as well as the envisioned $1 trillion economy.
“Falling reserves in a $1 trillion dollar economy? The conversation is how do we increase our buffers from $34b to lay foundation for a $1 trillion dollar economy?. Except if we rebase, our GDP has lost over $ 400b in volatility. The overlap of price policy and AML/CFT Policies should be entirely independent.”
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Prompted further, he said, “Let us borrow from Turkey’s concept by establishing more free trade zones and handing over all commercial businesses to private investors. Nigeria has the greatest non performing assets in Africa like abandoned federal secretariat, Bonny camp, stadiums etc. Let’s monetize them and forget borrowing money. I ask you, which indices in Nigeria is not going south ward? Is it the corruption index, insecurity, inflation, higher interest rate, unemployment, exchange rate volatility, misery index etc.? It is right time we balanced international obligations with our national objectives. Adopting alien models can not take us to the promised land. The bottom fact is that the goal and objectives of $1trillion dollar economy can not be achieved without a stronger buffers.We are only boasting of $34b so to say. We need an inward paradigm shift to increase our buffers not borrowings from IMF/ world bank. In terms of who is controlling, we should clearly separate price policy mechanism and AML/CFT Policies. Finally, we need to balance our international obligations with our National objectives. We can not always be rubber stamp and whims and caprices of the so called advanced economies.The recent naira appreciation at the NAFEM window is an optics when the open market is hell wire. We are all watching.”
According to Friday Ameh, Lagos based analyst, the country is blessed with both natural and human resources, adding that if and when properly harnessed, Nigerians would be better for it. “The government has demonstrated courage in some areas,he should go ahead and exhibit some political will. Past records and propaganda have no place in the new Nigeria. It’s ether you are good as shown by your supervisory and monitoring capacity and assemblage of capable individuals to assist in executing your promised programs or you resort to responding to all criticisms with excuses and blame game.We have had enough of those in the past.”