NIGERIA ECONOMIC CRISIS – The
human rights and maritime lawyer, pointed out that cohesion was needed
at this point, that the tight liquidity operated by the Central Bank of
Nigeria, CBN, where it jerked up its Monetary Policy Rate (MPR) to 14
per cent is ridiculous, adding that CBN’s focus on Forex management is
rather encouraging round tripping and creating asymmetry in the system.
He
also advised the CBN to focus on productive value of the economy and
not the numerical value of the naira, saying: “The full deregulation of
the forex market to allow level playing field and removing distortions
such as round tripping, will ensure that at least $20 billion inflow
will instantly occur.”
The former NBA Chairman, then
went on to list a number of solutions for President Buhari to revive the
economy saying that there was an immediate need for “a presidential
proclamation at the National Assembly, switching from austerity to
growth policy, the federal government needs to spend more to boost
growth.” Agbakoba, however, pointed that contrary to popular opinion,
President Buhari does not need the envisaged economic emergency powers
to make a turnaround.
He noted that former President
Shehu Shagari had it in his time and still failed, adding that the
so-called economic emergency powers is also not working in Venezuela.
Agbakoba said that to revive the economy: “Nigeria must spend its way
out of recession; establish a National Treatment Policy- Fiscal and
trade Protection Policy, establish urgently a Development and Guarantee
Bank; prepare Public Sector Borrowing Requirement, PSBR and borrow as
our debt Ratio can sustain this, as well as develop Assets
securitisation.”
In conclusion, the lawyer said that
there is need for the Federal Government to pay-off the country’s
domestic debt to inject liquidity in the system. Read More
