Business
Economist Wants President-Elect To Focus On Monetary Policy
An Economist, Mr Henry
Boyo, has advised the President-elect to focus on strengthening monetary policy, to improve and transform Nigeria’s economy.
Boyo gave the advice on Wednesday in Abuja in an interview with The Tide source.
“ The president-elect should not settle for doing things the way people have been doing it in the past without much success.
“He must be very concerned about monetary policy strategy, “ he said.
“This is because at the end, no matter how hard he works, if he does not understand the critical significance of money and its management, then, all his efforts will be meaningless.”
He said that Nigeria could not afford to continue to have excess liquidity in the country that arose from government borrowing money it did not need.
The economist said that such development had led to high interest rates and increased the national debt burden to almost about 10 per cent annually.
“We cannot continue to mop up excess liquidity at a time when the real sector is dying and crying for lack of fund.
“We can also not expect naira to appreciate when there is surplus of it in the system.
“We cannot expect fuel subsidy to be resolved so long as the naira continues to weaken.
“ So long as the naira weakens, the higher will be the price of fuel and the more difficult it will be to remove fuel subsidy in the country.
“He must neither be favourable toward increasing government debt nor must he willingly encourage government borrowing while at the same time there is surplus money in the system.’’
He emphasised that the president-elect should be interested in determining an appropriate value for the naira, such that the country would not have the highest value of currency in circulation at five dollars.
He said ,“One N1,000 is equivalent to about five dollars, compared to about 100 dollars in America; 100 pounds in Europe and that is an indication of the low purchasing value of our currency”.
Boyo said that the lack of recognition of the significance of monetary policies by the past governments had been one of the major challenges of the nation’s economy.
“These are the main areas the president-elect would have to pay attention to; otherwise his stay in power will not be very meaningful to a greater number of Nigerians.
“Until the president pays attention to that, he may not be able to successfully manage the economy.”
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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