IMF report: Experts urge FG to place emphasis on infrastructure development

NAN-HE-2
IMF
By Chinyere Joel-Nwokeoma
Lagos, Oct. 20, 2016 (NAN) Some financial experts have advised the Federal Government to place more emphasis on infrastructure development to maintain Nigeria’s position as the largest economy in Africa.
They told the News Agency of Nigeria (NAN) in Lagos on Thursday that well developed infrastructure would make the country’s informal sector to be more vibrant.
The financial experts were reacting to the IMF which reported that Nigeria’s economy was still the largest in Africa.
Prof. Sheriffadeen Tella of the Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, told NAN that activities in the nation’s informal sector were very huge and should be encouraged.
Tella said that government should pursue policies that would strengthen the development of the informal sector as the sector was the driver of the nation’s economy.
“Nigeria economy will continue to be the largest in Africa if the relevant authorities take cognisance of activities in the informal sector,” Tella said.
He said that there were huge markets all over the country whose activities were not captured in the Gross Domestic Product (GDP).
Tella said that government through its agencies needed to capture activities in all sectors of the economy to know their actual output and income, adding that the funds outside the banking sector were still huge.
“I don’t think there is anything wrong in the IMF latest report because we have what it takes to be the largest economy in Africa taking into cognisance the depth of our informal sector,” Tella said.
Mr Sola Oni, the Chief Executive Officer, SOFUNIX Investment and Communications Ltd., also said there must be a deliberate policy of government to invest in the nation’s infrastructure.
Oni said that the astronomical and unacceptable cost of running government in Nigeria should be reduced.
“There is no doubt as to what government should do, there must be a deliberate policy to invest in infrastructure,” he said.
Oni said that government should take advantage of the capital market for infrastructure development.
“It is not an overstatement that the IMF said that Nigeria’s economy will bounce back and overtake some African countries’ economies.
“But policy formulation and implementation have always remained the river between Nigeria and its economic growth and development,” he added.
Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that the IMF was playing with figures because it was devaluation that really affected Nigeria.
Kurfi said that Nigeria was still the largest in Africa in terms of population and economy.
He said that the country’s productivity would improve if the closure of the borders was properly enforced.
Kurfi said government should continue to check the influx of foreign goods into the country.
Dr Uche Uwaleke, the Head of Banking and Finance Department, Nasarawa State University, Keffi, said that it was not yet time to roll out the drums on the 415 billion dollars GDP estimated by the IMF.
Uwaleke said that it was difficult to reconcile the IMF estimate with the country’s poor macro economic performance in the last few months occasioned by the drastic fall in oil revenue.
He said government should not make a big issue out of the report, but must remain focused in its efforts toward getting the economy out of recession.
NAN reports that IMF October Report affirmed Nigeria’s economy as the biggest in Africa, ahead of South Africa and Egypt.
Nigeria was reported to have lost its spot as Africa’s biggest economy to South Africa in August 2016, following the recalculation of the country’s GDP.
The IMF World Economic Outlook for October 2016 puts South Africa’s GDP at 280.36 billion dollars from 314.73 billion dollars in 2015.
The latest estimates from the IMF put Nigeria’s GDP at 415.08 billion dollars, from 493.83 billion dollars at the end of 2015. (NAN)
JNC/MO/TA
Edited by Morayo Omolade/Tajudeen Atitebi