Director-General of the West African Institute for Financial and Economic Management, WAIFEM, Professor Akpan Ekpo, weekend, blamed the Federal Government and the Central Bank of Nigeria, CBN, for the country’s current economic woes and its recent plunge into recession.

WAIFEM was established July 22, 1996, by the governors of the Central Banks of The Gambia, Ghana, Liberia, Nigeria and Sierra Leone.

In an email response to Vanguard enquiries in Abuja, Ekpo, an economists, former CBN director as well as ex-Vice Chancellor of the University of Uyo, noted that the delay in passing and implementing the 2016 budget and the CBN’s monetary and foreign exchange policy stance helped worsened the country’s economic situation.

Laments near absence of fiscal policy

He said: “There was a near absence of fiscal policy – the economy lacks the necessary fiscal buffers. Money and exchange rate policies were the only voice. Rather than implementing quantitative easing, the CBN was interested in tightening monetary policy. When an economy is almost in a recession, monetary expansion would help towards recovery.”

He further argued that the CBN’s foreign exchange framework was another policy in the wrong direction, stating that rather than implementing a robust managed exchange rate regime, the CBN allowed the naira, which is not convertible, to float freely looking for a non-existent stability and equilibrium in both the short and long-terms.

“When a commodity is in short supply, market forces cannot determine the ‘correct’ value. The only source of foreign exchange for the economy is crude oil export, hence unrealistic assumptions under a competitive market cannot work in the foreign exchange market,” he added.

Faults CBN’s forex futures market, other policies
Ekpo faulted the CBN’s decision to introduce a futures market within a foreign exchange market, stating that it further complicated Nigeria’s economic woes, especially in view of the fact that the Nigerian economy is heavily dependent on imports of goods and services and has only one major single source of earning foreign exchange.

He said: “The delay in adjusting the band of the value of the naira to the dollar, when the market provided a guide through scarcity, heightened the crisis. If recession persists, monetary, fiscal policies would be ineffective.”

He, however, warned that if the recession persists, monetary and exchange rate policy would be ineffective, adding that except drastic measures to reflate the economy were put in place, the third quarter of 2016 would not be different.

LIST CONDITIONS FOR ECONOMIC REVIVAL

For the country to be able to get out of recession, Ekpo said the Federal Government should place emphasis on spending on capital projects and recurrent expenditures, especially in the area of payment of salaries owed workers, while also increasing its spending on power, roads and other infrastructure.

He disclosed that the Federal Government must assist states to pay workers owed salaries to stimulate aggregate demand, adding that the time to design policies to diversify the economy was now.

“I hate to disappoint Nigerians, the private sector cannot get us out of the recession. Government must lead for the private sector to follow until recovery sets in. As part of stimulating aggregate demand, the social programmes in the budget must be implemented urgently.

“Furthermore, government has no choice but to borrow externally and domestically to spend and get the economy out of the recession.

“Our economy consumes what it does not produce, hence there is need for a re-orientation for citizens to prefer locally produced goods and services. Heavy tariffs must be placed on imported goods and services. Lending rates are just too high to revamp the real sector.”

“Government must be strategic and think outside the box by grafting policies and programmes which would enable potential investors produce and supply both domestic and external markets.

“There has been too much emphasis on producing to earn forex; we only need a productive economy and other things would adjust.

‘’However, it must be noted that recessions are regular occurrences in a capitalist economy, hence the need for proper economic management in order to minimize its adverse effects.

“There is no doubt that this recession would pass away but another one would come, for no two recessions are alike. Therefore, managing an economy is not a tea party,” he added.

blackpanda:
We are tired of all the blaming abeg. What is d solution, na wetin we wan hear biko!

blackpanda:
We are tired of all the blaming abeg. What is d solution, na wetin we wan hear biko!

kenny987:
Tired of blaming now? @blackpanda...no be una APC game? Why are u tired? Is it because it has been properly situated on d scrawny shoulders of thy lord n role model n his handlers/party members?

Sha open ur eyes n read, suggestions were proferred in d article, ur concern should be getting Mr Daftus to snap out of his medieval time warp and allow seasoned hands control and implement economic policies after he has ruined d entire atmosphere with his ignorance and unwieldy stance, expecting everyone to obey the last order as if democratic governance is some mechanical military formation.

blackpanda:


Pls grow up

Director-General of the West African Institute for Financial and Economic Management, WAIFEM, Professor Akpan Ekpo, weekend, blamed the [size=20pt]Federal Government[/size] and the Central Bank of Nigeria, CBN, for the country’s current economic woes and its recent plunge into recession.

kahal29:
That's my Prof Talking.. How I wish PMB will bring you and Soludo on board to take over from Emefiele and Udoma Udoma. While you take charge of CBN and monetary policies, Soludo takes over the planning ministry together with the fiscal policies of the government. The two of you will now complement the efforts of Kemi the Finance Minister who be doing her normal book keeping job as a chartered accountant and also presiding over FAAC meetings where revenues are shared.

Adminisher:
Oil price crash some idiot is talking fiscal and monetary policy.

StephanieLuv:

Kahal29 a true APC fan, he said blamed FG and ....... stop diverting the blame to CBN alone, it was the FG who appointed the clueless CBN Governor and the current clueless Finance minister.

Decibel:

You're shielding your own. "Our Sister Syndrome "
The economic illiterate and mathematically deficient Kemi Adeosun must be sacked else a complete foul play.

blackpanda:
We are tired of all the blaming abeg. What is d solution, na wetin we wan hear biko!

kahal29:
The two of you will now complement the efforts of Kemi the Finance Minister who be doing her normal book keeping job as a chartered accountant and also presiding over FAAC meetings where revenues are shared.

kahal29:
That's my Prof Talking.. How I wish PMB will bring you and Soludo on board to take over from Emefiele and Udoma Udoma. While you take charge of CBN and monetary policies, Soludo takes over the planning ministry together with the fiscal policies of the government. The two of you will now complement the efforts of Kemi the Finance Minister who be doing her normal book keeping job as a chartered accountant and also presiding over FAAC meetings where revenues are shared.

cescky:


Is that all u have to say?

Well it means u know nothing....why not leave the professionals and their informed opinions instead magnifying ur ignorance

XX01:


If it's book keeping she came to do, she should be the accountant general and not minister of finance.

Bolustic:

So you're blaming Kemi for rot NOI & GEJ left. So you expect the change to come in less than two years but you could endure misrule for 16 years.

If GEJ had left a buoyant economy as he claimed, how come he had to borrow to pay for the first quarter of last year?

blackpanda:
We are tired of all the blaming abeg. What is d solution, na wetin we wan hear biko!

MCMLXXVI:


You're a pathetic clown.
You think we didn't notice your underhanded motives?

Kemi Adeosun is incompetent for that job, and must equally bounce! Stop shielding the glorified Home Economics graduate simply because she's from your side of the divide, you pretentious hypocrite!

When Okonjo-Iweala was Finance Minister, you people never stopped attacking her. You labeled all her stellar efforts as "paper economics". Now the chicken has come home to roost.
The mid-level accountant is as cliueless as ever!

chally02:
Naija how did we get here

Adminisher:
Oil price crash some idiot is talking fiscal and monetary policy.