Economist calls on FG to redesign economic policy

Renowned economist and CEO of Financial Derivates Company, Mr. Bismarck Rewane, has directed the Federal Government to redesign its economic policies to have a positive impact on the lifestyle of Nigerians who are now focused on meeting their basic needs, a proof that the government’s current economic plans are not yielding results.

Rewane made this appeal during the Mid-Year Economic Review and Outlook 2024 conference organised by the Lagos Chamber of Commerce and Industry (LCCI) in Lagos.

Comparing the performance of the country’s economy between 2014 and 2016, the Financial Derivates boss in an article titled “Half-Year Economic Review and Outlook: Government Options and Emerging Business Opportunities” said that while discussions among Nigerians continue to focus on inflation and exchange rates, discussions about inflation have somewhat subsided.

“In 2014, discussions about inflation focused on the prices of motor vehicles and other luxury goods, which were gradually getting out of control, whereas today the discussions focus on survival and basic needs, such as the price of garri, tomatoes and other food products.

“If your father’s quality of life is better than your grandfather’s, and yours is better than your father’s, and you think your children will have a better life than you, then you could say the economy is meeting expectations. But what are we seeing now? Discussions that focus on the basic ingredients of life,” he said.

Assessing the administration’s performance over the past six months, Rewane noted that the government failed to deliver on most of its economic plans by mid-year.

“The plan was to grow the economy by 3.76 per cent but what we are seeing here is an average growth of 1.79 per cent, the exchange rate at which the budget was planned was N750 but now it is over N1,500; the projected inflation was 21.4 per cent but now it is 34.19 per cent and I do not think we will reach 21.4 per cent as projected by the end of the year,” he stated.

On the issue of abolishing fuel subsidies, Rewane called on the federal government to move beyond the “shallow” discussion of the vexatious policy and pursue institutional reforms that will enable it to earn the trust of Nigerians.

The Financial Derivates boss argued that while eliminating fuel subsidies was imperative given the scale of waste and corruption it spawned, the government needed to address spending efficiency issues in the system.

He added that one way to intensify such a discussion should be government transparency regarding the amounts obtained under this operation and how these funds are spent.

The renowned economist believed that this would enable Nigerians to find out how much money will be raised from this initiative and how these funds will be used to improve their financial situation.

“It’s one thing to make money and another thing to ensure that those profits are used properly. Income that is mis-spent, wasted or stolen cannot translate into growth. So the discussion here that subsidies have disappeared is rather shallow. It has to go beyond that. There is a need for deeper institutional reforms because if you don’t go deeper, you are guaranteeing more kidnappings, thefts, robberies and other social vices,” he said.

Rewane also predicted that there could be sell-offs and investments in the country’s corporate sector over the next year, but advised investors to conduct feasibility studies to determine where and how such funds would be disbursed.

The LCCI President, Gabriel Idahosa, while advising the Federal Government on the uncontrolled introduction of the tolls, said the introduction of the now suspended digitalised Central Motor Vehicle Register (e-CMR) is not indicative of the government’s sensitivity to the plight of Nigerians.

“Nigerians are already overburdened. It is insensitive to introduce taxes like this indiscriminately, but we believe that governance should be about the people,” he said.

The LCCI chief explained that the Mid-Year Economic Summit was planned to review key political events and macroeconomic performance in the first half of the year.

“It also discusses the outlook and expectations for the second half of the year, focusing on risks and opportunities,” he added.

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