Monday, September 21, 2020 / 6.00 PM /
Bukola Akinyele for WebTV / Header Image Credit: Independent Newspapers
Nigeria's quest for achieving inclusive economic growth and competitiveness hinges on a clear and single policy anchor that is integrated into its development planning.
Dr. Biodun Adedipe the Founder/Chief Consultant of BAA Consult disclosed this while providing insight into developments in the Nigerian economy.
According to Adedipe, Dubai, United Arab Emirates (UAE) leveraged tourism as its anchor which has transformed the economy and attracted robust investments from across the globe.
He also highlighted Indonesia which focused on Oil Palm which last year generated approximately $26bn in revenue to the Asian economy, as well as Malaysia that prioritized Oil palm derivatives that have also led to its industrialization and development.
Apart from the clear and single policy anchor the renowned economist, also emphasized the effective ways of measuring the progress and impact of economic plans in the country.
Giving his perspective on fiscal restructuring in Nigeria, he stressed the need for three key areas to be addressed which include;
On the recent ultimatum issued by both the Trade Union Congress (TUC) and Nigeria Labour Congress (NLC) to the Federal Government to reverse the hike in the petroleum pump price and electricity tariff, he called for dialogue as the nation cannot afford another round of industrial action.
He re-emphasized the need for Nigeria's fiscal and monetary policies to synergize in a way that can support productivity, which will help to reduce the pressures on foreign exchange.
Looking at the recent statement by the Central Bank of Nigeria (CBN) on the need to support critical sectors for growth, Dr. Adedipe agreed that Agric and ICT remained among the key sectors that should be supported because both sectors combined contribute 0ver 40% of the county's Gross Domestic Product (GDP).
Speaking on the 15-page statement of the Nigeria Economic Summit Group, NESG over the concerns of how CBN has managed the foreign exchange, Adedipe said, since 2016 a platform by the name Import and Export FX window was created to bring more transparency to the process and clarity to the real exchange rate value of the Naira.
According to him, the CBN has also provided various interventions in key sectors of the economy, the same way other central banks are supporting economies facing challenges as a result of the COVID-19 pandemic.
Ahead of the September 2020 MPC meeting which will take key decisions on Tuesday, Dr. Adedipe said the focus will be how to get the economy back on the path of growth; which is why he expects a dovish approach and a hold on the Monetary Policy Rate, MPR and other key indicators.