The Buhari administration will require a major policy shift by undertaking an external adjustment if it is to succeed in luring the country’s economy out of recession and reduce the hardship millions of Nigerians are currently facing according to Ayodele Teriba, CEO of Economic Associates.
Ayo Teriba disclosed this while presenting a paper at the Hubert Humphrey Fellowship Alumni Program annual lecture organised by the United States Consulate General Lagos. “Nigeria relies almost exclusively on export to generate revenue.
It focuses on export and does not pay much regard to the need to rethink foreign direct investment (FDI). China and India have become the leading destinations for foreign direct investment because of their policy adjustments,” Teriba said.
At the moment, he stated, the major challenge to the economy is to wake up the administration and make it know that depending on exports almost exclusively is not going to work. “The chances of generating non-export resource inflow are very bright. There is a record level of liquidity on the global scene; there is a commodity glut and a liquidity glut. China and India are capitalising on the liquidity glut to generate FDI. Nigeria needs to attract more FDI and diaspora inflow. It can issue bonds for diaspora investment,” Teriba sais.
He also said that the infrastructure deficit could be an opportunity to attract investment but the government will have to “break its own monopoly”.
John F Gray, US Consul-General while speaking on the topic ‘The Challenges and Opportunities of Managing a Recessionary Economy: The American Experience’ noted that the recession was not peculiar to the emerging economies like Nigeria.
“There have been as many as 47 recessions in the United States since 1790. Throughout US history there have been two sets of tools to foster economic recovery: monetary policy and fiscal policy. “Based on the American experience of dealing with recessionary economies it is clear there is no simple answer. There is not one size fits all solution. Different times, different circumstances require a unique set of fiscal and monetary policies,” Gray said.
Olabintan Famutimi, national president Nigerian-American Chamber of Commerce stated that recession was a result of the country’s mono-economy.
“The most confusing thing in the nation is that we are nowhere near a strategy that will lead us out, instead we are told to brace-up for more hardship,” Famutimi said. The only route out of recession is by leveraging the many opportunities that it brings for entrepreneurship.
For Henrietta Onwuegbuzie, Senior Lecturer, Entrepreneurship and academic director Owner-Manager Programme, Lagos Business School, Pan-Atlantic University. Recession means a time of opportunities, she said, “I believe there are opportunities and government needs to provide an enabling environment. Entrepreneurs in the country must take the advantage.”
FRANK ELEANYA
