Economy
By Chinyere Joel-Nwokeoma and Rukayat Abu
Lagos, March 14 , 2018 (NAN) Mr Bismark Rewane, the Chief Executive Officer, Financial Derivatives on Wednesday charged the Federal Government on good governance, accountability and transparency to sustain economic recovery and growth.
Rewane said this at the Business Eye annual roundtable 2018 in Lagos, with the theme; “Ensuring Sustainable Recovery and Growth in a Fragile Economy.
He said that the economic growth could be sustained through hard work, good governance, accountability and transparency in both private and public sector.
Rewane said that the economic situation was getting better, although slow, noting that a lot of work needed to be done to address unemployment rate in the country.
He said that government needed to invest more in the agriculture sector and diversify revenue base to tackle unemployment challenges being experienced in the country.
Rewane said that the growth recorded in the economy so far, was as a result of increase in oil production and increase in oil price at the global markets.
He said that Nigerian needed to learn from the mistake of the past by developing different sources of revenue to avoid over dependence on oil revenue.
According to him, the contribution of agriculture to the country’s Gross Domestic Product (GDP) presently is 22 per cent.
The economist added that the growth should be enhanced with the right infrastructure investment to boost production and minimise wastage.
According to him, government should invest in rail, road, power and others to get the unemployed to work.
“Nigerians should be able to give up something to achieve the desired growth,’’ Rewane said.
He said that the nation’s economic recovery would continue till 2019, with the right policies and friendly operating environment.
Rewane noted that political risk needed to be tackled to avoid lost of funds as the country prepare for general elections.
He also stressed the need for increase in net foreign investment rather than emphasis on portfolio investment which could leave the country anytime.
On lending to the real sector, Rewane said that the apex bank need to review the cash reserve requirement downward to increase supply of loanable funds within the banking sector.
Mr Femi Awoyemi, the Chief Executive Officer, Proshare said that there was the need to reduce fiscal dominance, especially with growing instances of monetary policy underwrite of the Federal Government.
Awoyemi said that government must widen its tax base to fully accommodate the informal sector.
He said that the inability to capture the informal sector threatens the government non- oil revenue drive.
“In order to stimulate the agricultural sector to grow by 6.7 per cent, a drastic approach to the herdsmen and famers clash should be considered,’’ he said.
Awoyemi said that government should carry out its divesture plan in line with economic and recovery plan to sustain growth.
Mrs Ibim Semenitari, the Chief Executive Officer, Business Eye, said that the roundtable had become more than a ritual just like its twin annual prediction series.
“Every year, we strive to take a peek into the business and economic landscape. The idea is to help the public and investors make informed decisions.
It is always good for business when someone gives you a head up. But beyond that, our annual round table is a market place of ideas that allows interaction and discourse in a free flow,’’ Semenitari said.
She said that the 2018 edition was a delight, coming on the heels of the World Bank and the International Monetary Fund (IMF) cautionary advice that the numbers regardless, Nigeria’s economy may still be quite vulnerable.
According to her, the absence of debate and conversation is one of the reasons our nation appears sometimes confused and at other times anemic or poorly developed. (NAN)
JNC /ARM/EEE
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Editing by Ese E. Ekama