Business
Experts Advise FG On Monetary, Fiscal Policy Alignment
Some experts have advised the Federal Government to take steps to avoid the relapse of the economy into recession.
They gave the advice in Lagos yesterday while reviewing the state of the economy on the occasion of Nigeria’s 58th independence anniversary.
A former President of Association of National Accountants of Nigeria (ANAN), Dr Samuel Nzekwe, advised the Federal Government to align fiscal and monetary policies to attract investments into the country.
He said this became imperative since the Central Bank of Nigeria (CBN) had warned that the country might relapse into recession.
He said that that foreign investors would only invest in the economy if the business environment was conducive.
The CBN Governor, Mr Godwin Emefiele, said after the Monetary Policy Committee (MPC) meeting on September 25 that the economy might relapse into recession if certain steps were not taken.
Emefiele attributed this to the slow growth of the Gross Domestic Product (GDP).
An economy is said to be in recession after contracting for two consecutive quarters.
Recall that the economy slipped into recession in 2016.
It declined to 1.5 per cent in the second quarter of 2018 from 1.95 per cent in the first quarter.
Nzekwe said that government should focus more on improving economic indices to attract foreign investors and boost public-private partnerships.
He said that Nigerians needed to be constantly encouraged to consume locally produced and stop their preference for foreign goods.
“No country has ever created a great economy by depending on the industrial outputs of other nations.
“The task of rebuilding the economy is an assignment for all Nigerians,” he said.
Nzekwe said the last recession should have taught the country to come up with comprehensive inward-looking policies to boost local production.
He said that the government must enhance individual liquidity by spending wisely on agriculture, infrastructure and stimulating the manufacturing sector.
A former Director in the Department of Statistics at the CBN, Mr Titus Okurounm, advised that both federal and state governments should borrow from the capital market to finance revenue-yielding capital projects
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.