Experts Seek Diversification Of Economy

Some financial experts have called on the Federal Government to strengthen the non-oil sector to boost the nation’s revenue generation and foreign reserves.

They told our correspondent that there was the need to diversify the economic base because of the gradual drop in foreign reserves.

They said that diversification of the economic base was necessary to stabilise oil prices.

The Managing Director, Trust Yields Investment Ltd.  Alhaji Rasheed Yussuf, in Lagos, said the persistent drop in oil price was not good for the economy.

Yussuf said that there was urgent need for government to pursue policies that would strengthen macro-economic stability.

He said that the drop in external reserves might be due the Central Bank of Nigeria (CBN) stance of using the foreign reserves to stabilise the naira at the foreign exchange market.

According to Yussuf, the decline is not  good for foreign investors and CBN needs to be careful to avoid depleting the foreign reserves to a tolerable threshold.

An economist with Les Leba Ltd. Mr Henry Boyo, in Lagos, called on the apex bank to concentrate on price level stability and desist from using the foreign reserves to defend the value of the naira.

Boyo also called for a reduction in the Federal Government spending to reduce undue pressure on the nation’s currency.

He said that the foreign reserves would further drop at the rate the apex bank was defending the exchange rate of the naira.

The Managing Director, H J Trust & Investment Ltd.Mr Harrison Owoh,  in Lagos called for massive investment in infrastructure development to boost foreign investment inflow.