NAN-HE-1
Policies
By Lucy Nwachukwu
Abuja, Dec. 29, 2016 (NAN) A financial expert, Prof. Uche Uwaleke, on Thursday called for synchronisation of fiscal and monetary policies in Nigeria to tackle economic recession.
Uwaleke, the Head of Banking and Finance Department, Nasarawa State University, told the News Agency of Nigeria (NAN) in Abuja that recession was the biggest challenge currently facing the government.
According to him, the economy has contracted for three consecutive quarters in 2016 and there is no indication that the last quarter of the year will be different.
“The way to exit recession is to synchronise fiscal and monetary policies in ways that will reflate the economy.
“Since the implementation of the 2016 budget, which began in May after the President’s assent, will run a full year cycle spilling into 2017.
“I expect the government to ensure that the capital component is given priority. In order to speed up infrastructure projects, government hopes to take foreign loans in 2017.
“Except for the Eurobond component which I advise against on account of associated high cost, external borrowings, especially from multilateral sources like the World Bank and African Development Bank, should be embraced,’’ Uwaleke said.
He said that these would go a long way to better the economy provided the loans were project tied.
The expert also urged the government to pursue initiatives contained in the 2017 budget proposal with vigour.
Uwaleke list the initiatives to include the housing fund, economic zones in the six geopolitical regions, recapitalisation of development banks as well as increased funding for the amnesty programme.
“The initiatives will go a long way in securing the 2.2 million barrels per day oil output estimate,” . (NAN)
LCN/AOM/TA
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Edited by Abdullahi Mohammed/Tajudeen Atitebi