Experts in the financial sector have called on the federal government to improve the nation’s energy sector, value addition for agricultural products and provide a suitable business environment to rebound in 2023.
They spoke in separate interviews on Sunday in Ibadan while reviewing the 2022 economic performances.
A financial expert, Tunji Adepeju, said the country still has the carryover effect of COVID-19, the recent flooding in some states, the ongoing Russia and Ukraine War, the industrial action by the Academic Staff Union of Universities (ASUU), and oil theft.
On ways forward, Mr Adepeju suggested that the incoming administration removes fuel subsidy and improve transportation and energy for the populace.
“Stop turning farmlands into GRA, the Government Reservation Area, which would be shared among top government functionaries and civil servants, to be sold later at very exorbitant prices.”
On foreign exchange rates, Mr Adepeju said the government could not do much until refineries were working because “a lot of dollars go into importation of petroleum products”.
Another financial expert, Sola Famakinwa, said the country’s economy faced a great challenge in 2022 due to high inflation, insecurity, and low oil revenue.
Citing the World Bank Report that puts Nigeria’s inflation rate at the world’s highest, he urged the government to encourage small businesses and private firms by reducing the tax rates and improving the energy sector.
“Increase its export to gain more foreign exchange, improve oil production and reduce oil theft and improve security in the country.
“And fight corruption in both public and private sectors. All these would help to rebound the Nigerian economy,” Mr Famakinwa said.
Also, Kingsley Obiora, the deputy governor, Central Bank of Nigeria (CBN), identified COVID-19 as part of the issues affecting the global economy, including Nigeria, as it metamorphosed from a public health crisis to a global economic crisis.
Mr Obiora said inflation had remained above comfortable levels and that the exchange rate had been under pressure for a while.
“While some have been scapegoating the CBN for the recent dollar exchange rate, it is good to bear in mind that exchange rate mostly reflects our collective decision and action, rather than the policies of the CBN itself,” he said.
Mr Obiora noted that the demand and supply of U.S. dollars in the 70s and 80s, compared to now, had increased significantly, hence, the high exchange rate.
The CBN deputy governor said data from the UNESCO Institute of Statistics indicated that the number of Nigerian students studying abroad increased from less than 15,000 in 1998 to over 71,000 in 2015. By 2018, the number had risen to 96,702 students, according to the World Bank.
“In light of the above, it is no wonder that foreign education cost the country a whopping 28.65 billion dollars from 2010 to 2020, according to the CBN balance of payments statistics,” Mr Obiora said.
He said that, according to the UK’s Home Office, which monitored students’ visas to the UK, Nigerian students received 8,354 visas in 2019, “and by June 2022, this same office had issued 65,929 visas to Nigerian students.
“If you assume that each of these students needs 40,000 dollars per annum for tuition, flight, accommodation, clothing, food and educational materials, as well as general upkeep, it means that we, as a nation, would need to send an additional £2.3 billion to the UK every year.
“These are the realities that put our exchange rate under pressure,” Mr Obiora said.
(NAN)
