Economy
Broadcast: Economists Applaud Tinubu on Incentives, Worry about Implementation
…..Economists Applaud Tinubu
Some economists have applauded President Bola Tinubu for informing Nigerians about his policies and incentives taken to cushion the effect of the fuel subsidy removal.
The experts gave the commendation in separate interviews with the News Agency of Nigeria (NAN), while reacting to the President’s broadcast message on Monday night, in Lagos.
Prof. Akpan Ekpo, Chairman, Foundation for Economic Research and Training (FERT), said that it was a good thing the president addressed the nation and kept the masses informed, adding however, that a lot of the issues raised still needed more details.
“For example on the manufacturing sector where he said government would spend N75 billion between July 2023 and March 2024 to fund 75 enterprises and that each of the 75 enterprises would be able to access N1 billion credit at 9 per cent per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.
“It is not possible! There is no way you can put a lot of money as a businessman in 15 months, you make profit and start repaying. This plan is not well thought through.
“Also, I feel that the broadcast favours the private sector and business owners more than the working class and the vulnerable.
“The issue where he also talked about rolling out buses across the states and local governments for mass transit at a much more affordable rate, does not have its time frame well spelt out. They have been saying this for almost three weeks now,’’ Ekpo said.
The Fert Chairman, therefore, called on the government to ensure the implementation plan of these incentives .
Ekpo also said, “on review of workers salary, we had thought that salaries would have been reviewed and agreed upon before the announcement.
Read Also: Fuel Subsidy: Tinubu Approves N100bn for 3,000 Buses
“So, these are some of the gray areas; now that he has said this, what will happen in the next two weeks is what we don’t know.
“And I hope that from time to time, maybe not him, but someone from his office will keep us informed on what is going on.’’
Uche Uwaleke, Professor of Finance and Capital Market at the Nasarawa State University, Keffi, also described the President’s address to the nation as“ quite soothing’’.
According to him, he spoke in clear terms and I think Nigerians should allow him the benefit of doubt.
“But it was short on how the three arms of government will share in the pains of the governed, especially with respect to effecting a significant cut in the cost of running government,’’ he said.
Prof. Ndubisi Nwokoma, Director, Centre for Economic Policy Analysis and Research, University of Lagos, Akoka, said, “These seeming incentives, though laudable, are not new and have not worked as designed, in the past.
“The lag in policy implementation remains counterproductive. Case of swimming against the current. New policies were announced on May 29, and remedial policies on the externalities brought forth on July 31.
“Business may not thrive under a hostile operating environment especially insecurity.’’
Nwokoma urged the government to urgently stimulate consumer spending to stimulate the economy adding that it was key when a country’s economy is going through a decline.
He said: “This provides a stimulus for production. If production is stimulated without the empowerment of consumer spending, then gains in production will be short-lived.
“A classic Keynesian prescription to pull out of a recession or economic decline is stimulated spending.
“However, alongside this, inhibitions to production such as the pervasive insecurity and other supply chain disruptions have to be addressed.’’
Nwokoma also advised that Public sector salaries be increased and implemented as soon as possible saying that the private sector was already making adjustments.
He expressed worry about the effective implementation of these incentives.
He said: “Finally, key issue now is effective implementation, if anything good (no matter how little) is to come out of this new government posture”. (NAN)
To end the week, the stock market rebounded from previous losses, gaining N74 billion.
Investor interest in MTN Nigeria, FBN Holdings, Guaranty Trust Holding Company (GTCO) and other equities lifted the market.
Notably, the market capitalisation opened at N56.014 trillion, adding N74 billion or 0.
13 per cent to close at N56.088 trillion.The All-Share Index also advanced by 0.
13 per cent, or 129.44 points, closing at 97,606.63, compared to 97,477.19 recorded on Thursday.As a result, the Year-To-Date (YTD) return increased by 30.54 per cent.
The market breadth closed positive, with 31 gainers and 19 losers on the floor of the Exchange.
On the gainers’ chart, Consolidated Hallmark Plc and Sterling Nigeria led by 9.
45 per cent each to close at N1.39 and N4.98 per share respectively.Mecure followed by 9.19 per cent to close at N10.10, Regency Alliance Insurance gained 9.09 per cent to close at 72k, while Fidson Healthcare Plc increased by 8.24 per cent to close at N15.10 per share.
Conversely, Deap Capital Management and Trust led the losers’ chart by 9.93 per cent to close at N1.36, NEM Insurance trailed by 9.71 per cent to close at N7.90 per share.
Daar Communications also lost 9.52 per cent to close at 57k, Tantalizers shed 9.09 per cent to close at 60k, while Dangote Sugar declined by 3.31 per cent to close at N31 per share.
Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 20.33 per cent.
A total of 304.43 million shares valued at N5.60 billion were exchanged in 6,950 deals, compared with 277.75 million shares valued at N4.65 billon in 7,091 deals traded in the previous session.
Meanwhile, Access Corporation led the activity chart in volume and value with 68.26 million shares valued at N1.34 billon.(NAN)
By David Torough, Abuja
The Nigerian Economic Society (NES) has decried Nigeria’s socioeconomic dilemmas, including; low personal incomes, dysfunctional education, healthcare systems, unemployment, rising inflation, poverty, amidst other critical issues.
This was part of the communique at the end of the association’s 65th annual conference held recently in Abuja with the theme: Socioeconomic Development in Nigeria: Imperatives, Implications, and Impacts.
It emphasised that the factors greatly contribute to insecurity, food scarcity, energy poverty, widening social inequality as macroeconomic instability and called on relevant stakeholders to urgently address the challenges.
President Bola Tinubu who was represented by the Vice President, Kashim Shettima through
Dr. Tope Fasua, underscored the
pivotal role of economists in shaping national development.
Tinubu reiterated the importance of their role to make the citizens feel integral and empowered, knowing that their contributions were crucial to the country’s development.
He urged them to approach the economy optimistically, stressing that their work was crucial, and that improvement was
always possible.
In his remarks, Minister of Budget and National Planning, Atiku Bagudu underscored the importance of socioeconomic resilience amidst global economic challenges.
He acknowledged the relevance of the conference theme, stating its timeliness in addressing Nigeria’s development needs.
On his part, Minister of Finance and Coordinating Minister of the Economy, Olawale Edun who delivered the keynote address on “Leveraging Economic Reforms to Leapfrog Nigeria’s Socioeconomic Development,” underscored the potential benefits of these reforms and stressed the need to better utilise Nigeria’s human and natural resources to spur socio-economic development.
He predicted that while structural reforms might cause short-term economic shocks, they would stabilise the economy in the long run, bringing hope for a brighter future.
In his presentation, the NES President, Professor Adeola Adenikinju who presented “Nigeria’s Socioeconomic Challenges: Lessons from the Structural Adjustment Programmes,” recommended:
Instituting an economic governance structure for the country, designating
some Ministries as economic ministries that qualified economists and allied professionals
must staff, adopting macroeconomic models to analyse the impacts of policies and assess
alternative scenarios.
Adenikinju also recommended; implementing export-led growth strategies by promoting value-
added exports and incentives for export-oriented industries and infrastructure, prioritising agro-allied industries to boost socioeconomic outcomes, implementing targeted subsidies or social safety nets to cushion vulnerable populations against the immediate impacts of reforms, amongst others.
The 65th NES Conference provided significant insights into Nigeria’s socioeconomic
development challenges and proposed actionable recommendations.
Participants emphasised the need for visionary leadership, policy synergy, and a commitment to long-term economic transformation to ensure sustainable development for Nigeria.
By Tony Obiechina, Abuja
The Infrastructure Concession Regulatory Commission (ICRC) says it will henceforth issue Outline Business Case (OBC) Certificate of Compliance and the Full Business Case (FBC) Certificate of Compliance within seven days.This follows the charge by President Bola Ahmed Tinubu to the Director General of the Commission, Dr Jobson Oseodion Ewalefoh “to accelerate investment in National Infrastructure through innovative mobilization of private-sector funding”.
President Tinubu also charged him to work assiduously to boost infrastructure development in Nigeria as part of the renewed hope agenda of the current administration.In view of the above, Dr Ewalefoh-led management team of the ICRC has streamlined the approval processes of the commission to issue its certificates of compliance within seven days. This will accelerate the turnaround time for approvals by the Commission.“In line with the charge of His Excellency, President Bola Ahmed Tinubu, GCFR, and following his Renewed Hope Agenda, we have streamlined and updated our approval processes to issue either of the Outline Business Case Certificate of Compliance (OBC) and the Full Business Case Certificate of Compliance (FBC) to Ministries, Departments and Agencies (MDAs) that meet the requirements within seven days.“This is part of efforts by the current administration to accelerate infrastructure development, bridge the infrastructure gaps and stimulate the economy through investment of private sector funds in Public Private Partnership endeavours.“By streamlining our processes, the Commission is in no way foregoing any of its stringent approval steps or key requirements, therefore, only business cases that are viable, bankable, offer value for money and meet all other requirements will be approved.“The ICRC cannot do it alone, therefore I implore all chief executives of MDAs to match our momentum and align with this charge of Mr. President to accelerate Infrastructure development and ensure that PPP projects are not stalled at any point but delivered within record time.“The Commission is ready to partner and collaborate with all MDAs to actualize this,” he said.In a statement by Ifeanyi NwokoActing Head, Media and Publicity on Monday the ICRC DG in August rolled out a six-point policy direction which among others, focused on accelerating PPP processes, boosting inter-agency collaboration and ensuring innovative financing.The ICRC was established to regulate Public Private Partnership (PPP) endeavours of the Federal government aimed at addressing Nigeria’s physical infrastructure deficit which hampers economic development.
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