Tuesday, June 11, 2019 / 07.00PM / Bukola Akinyele for Proshare WebTV / Header Image Credit: Brandsynario
Global Chief Economist of Renaissance Capital, Mr. Charles Robertson, and CEO Rencap Nigeria Mr. Temi Popoola called for more investment vehicles in the second term of the President Muhammadu Buhari administration.
They both shared their views in a recent interview with Proshare WebTV.
Both analysts agreed that the investment climate in Nigeria needs to be attractive enough to encourage private capital investment needed to expand the economy.
Because the budget deficit for Nigeria is between 4 and 5% of the country’s GDP, Robertson believes a shift is important in how policymakers manage the economy.
Understanding the need for continuity in fiscal and monetary policy in Nigeria, the economists warned that Africa’s largest economy faces the potential challenge of a major budget deficit.
According to Robertson if the deficit is not closed, debt will surge and lead to a crisis.
At a time of uncertainty in global trade and growth, Robertson emphasized the need for fiscal expansion with the widening of the tax base.
Responding to the issues of diaspora investments, he agreed that the example of India and China was remarkable but was of the view that frontier markets like Nigeria must create enablers to mobilizing domestic investments.
On his part, Popoola noted that the composition of President Buhari’s second term cabinet would be vital in driving investments and economic policies of the government.
“I would like to see a lot more intentionality, there is a lot of money out there in the diaspora, but we need vehicles through which we can invest money, it is also important that we improve the business climate and change the narrative about Nigeria,” Popoola said.
The Rencap Nigeria CEO asserted that the Buhari second term would involve tough policy choices for long-term economic development and growth.