An Economist, Tunde Adeoye, on Wednesday urged the Federal Government to increase the liquidity rate in the economy and regulate the interest rate as critical factors to redeem the nation from recession.
Adeoye, who is also a Senior Lecturer, Department of Economics, University of Lagos, made the suggestion in an interview with the News Agency of Nigeria (NAN) in Ota, Ogun.
Godwin Emefiele, the CBN Governor, had on Tuesday said that the nation would be out of recession by the third quarter of the year.
Emefiele further said that the nation had over 31 billion dollars in its External Reserve, enough to defend the Naira and bring down the prices of goods and inflation rate.
Adeoye said the economic activities in the country were not moving the way they supposed to do because of the higher prices of goods.
The economist said that the nation’s external reserves depended on the price of oil at the international market.
”Nigeria should not rely on this kind of measure to get out of recession because the country does not have control over the prices of oil at the international market.
”Instead, the nation should look for a long lasting solution by pumping more money into circulation and regulating the interest rate in the country.”
This, he said, would make funds available in the system and people would have access to them which would boost economic activities and bring down the inflation rate in the country.
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