• Saturday, July 13, 2024
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BusinessDay

FG challenged on economic strategies to absorb shocks

AfricaEconomy-1

With persistent economic pressures confronting the Federal Government amid dwindling revenue resources, economic managers in Nigeria have been challenged to re-think the country’s economic policies to enable it confront the current global economic shocks.

“Nigeria’s economic managers must re-think their strategy, adopt a defined political economic strategy in order to absolve citizens from this persistent economic shocks,” Uzochukwu Amakom, a professor of development studies at University of Nigeria Nsukka, told BusinessDay in a telephone conversation.

Analysts have often argued that global economies adopt strategies that absolve it from economic shocks at every given point in time. Furthermore, Nigeria has been facing persistent economic shocks in its foreign exchange (FX) sector, owing largely to the plummeting global oil price and attendant shocks to the local manufacturers who need the FX for raw material importations, amid restrictions by the Central Bank of Nigeria (CBN).

“What we urge our leaders to do is to give us a clear cut strategy. Strategy is key at this time of global economic constraints. Countries adopt strategies in order to confront other economic shocks that threaten them,” he said.

While highlighting how Nigeria could enhance its political economic space, he said: “For instance, South Africa buys its whole oil from Nigeria before now, but they are shifting focus now towards Iran. The question is, are we really playing the politics of the economy in such a way that it favours us in this time of global economic constraints. During the Iran negotiations, South Africa initiated talks with Iran and today they are buying their oil and has left Nigeria.”

He added: ”When Turkey is having issues with Russia, I had expected Nigeria to go into tactful negotiations, with Turkey for possible buying in of Nigeria’s gas by Turkey. This is what I expect our political leaders to be doing at each given time, bringing up political economic strategies for the growth of the economy.

“How can we have 36 ministers without any economist in the cabinet team, whereas we have 12 lawyers. We must go back to the basis and get it right on the economy.

“There are two policies that rule every economy, and they are: The fiscal policy and the monetary policy. Where the central bank manages the monetary policy, the Ministry of Finance manages the fiscal policy. I will suggest that our leaders should have a clear-cut strategy to run the economy. We must go back to the basis.”