Experts differ on Okonjo-Iweala's policies

Ademola Alawiye

Following the unveiling of a four-year fiscal plan by the Economic Team of the Federal Government of Nigeria, analysts have expressed divergent views on the proposed policies of the Finance Minister, Dr. Ngozi Okonjo-Iweala.


Analysts, who spoke with our correspondent in separate interviews, shared conflicting views on some of the ideas of the finance minister, who is also the coordinating minister.

The government recently unveiled a four-year fiscal plan, which showed that budget spending would increase from 2012, although the fiscal deficit would decline.

It also announced the forthcoming removal of fuel subsidies, which the government said would cost the country N1.2tn ($7.5bn). Although, the proposal is being debated by members of the National Assembly, some analysts believed some of the policies were not necessary in an economy like Nigeria, while others said the policies could be applied in any developing country including Nigeria.

The Chief Executive Officer, Vintage Wealth Managers Limited, Mr. Idowu Ogedengbe, said the policies were basic economic management policies.

"The fact remains that her policies are basic economic management policies. The policies may be World Bank policies; they are policies that can be applied anywhere. Subsidy represents a leakage from government finance. If there is removal of fuel subsidy and the savings are used well in other projects, then the policy is a good one," he said.

On naira devaluation, the Deputy Manager, Civic Investment Limited, Mr. Thomas Adenuga, said, "The reality is that we cannot continue to support the naira. It does not make sense. The value you are seeing now is an artificial value. The value should be left for the market to determine. The problem again is that we are not producing much, apart from crude oil, what else are we producing? So you don't expect them to continue to support the naira."

However, the Chief Research Analyst, Stakes Capital, Mr. Sanyaolu Kehinde, said the fundamentals of the Nigerian economy were not sound enough to absorb some foreign policies.

"The issue with some of our policy makers is that they believe so much in the book economy because they have worked well in advanced countries. It's not that the policies are not good but they cannot work here because they have not laid the foundation," Kehinde added.

The Chief Executive Officer, Fatrax Securities Company, Dr. Wale Ositelu, said "They should develop our infrastructural facilities and sectors like agriculture before introducing policies that have worked well in advanced countries. It's not enough to just adopt policies from other countries. The level of development in any economy will influence its policies."

"The fact remains that her policies are basic economic management policies. The policies may be World Bank policies; they are policies that can be applied anywhere. Subsidy represents a leakage from government finance. If there is removal of fuel subsidy and the savings are used well in other projects, then the
policy is a good one," he said.

Kx:

why dont "iwe ala" bring light, road, water etc first b4 copy and paste developed economies policies?
for crying out loud, would world bank even contemplate those policies in their US office if their office in america is powered by generator and the road leading to world bank office is as bad at nigeria roads?

why do we want to "jump" to primary 6 without starting from primary 1?

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KoolMaster:

This is just the beginning, the announcement on the removal of fuel subsidy just led to the sell of an AC, wait until the full implementation. Sorry for the poor ordinary Nigerian. This govt has nothing to offer. Remember Fela sorry sorry Oh

KoolMaster:

This is just the beginning, the announcement on the removal of fuel subsidy just led to the sell of an AC, wait until the full implementation. Sorry for the poor ordinary Nigerian. This govt has nothing to offer. Remember Fela sorry sorry Oh

tkb417:

yeah shes revered in this profession but what shes bringing to the table is silly

Her simple/basic economic management principles didnt see how to save 7.5billon USD from the way Government functionaries are being over paid?

Her basic economic management principles cannot include how to be self sufficient in oil production as against oil importation?
her silly economics background cannot see the need for the provision of Social Overhead Capitals as a necessity for a 3rd world sick country like Nigeria?

If they are looking for resources to save, they should farking look inwards

slash our ridiculous recurrent expenditure by 50% and the money needed will be readily available
Nigerians SHOULD not pay for the inefficiencies of this present and past Governments

Okonjo is sounding slow in me opinion

I wonder OOOOO. You say removal of subsidy which will affect ordinary Nigerians the most , a veritable keg of gun powder, is a must so as to free up money for infrastructural development yet you do not wish to even seriously attempt reducing recurrent expenditure , affecting mainly overpaid Government officials, or shrink the size of our democracy universally criticised for its unfeasibly bloated size  !!!!

How can that not be interpreted as wickedness, elitism and leadership insensitivity? I.e failing to take food from the well-fed and wealthy man while insisting you must take the little the skeletal poor man has?

@ Mr Gbawe thanks bro, when Petrodollar was in abundance and crude was at its highest , what did Nigeria do with the money , Fund its NASS, ASO ROCK and the rest of the cancerworm eating the country up

Trust me this money is going the same way,  Okonjo cannot run the country, she can only lay down policies, she cannot implement it across all the whole waste parastatal and minsitries + government waste departments, all over the place,

The problem is inwards, not outwards,  Within ABJ alone if they put things right we can acheive more without making the poorman sufer more,

The Chief Executive Officer, Fatrax Securities Company, Dr. Wale Ositelu, said "They should develop our infrastructural facilities and sectors like agriculture before introducing policies that have worked well in advanced countries. It's not enough to just adopt policies from other countries. The level of development in any economy will influence its policies."

Okonjo-Iweala and all the world bank economists we have had since Kalu Idika Kalu in the 80s have brought Nigeria nothing but trouble.

By the time fuel starts to sell for N142 per litre; let us see where we will go; Libya is coming

rareman:

while you are still at it, federal house of rep; is spending 7,000,000x360 members to buy toyota camery. Now if am thinking straight, I voted GEJ to tax me heavily just to service some money bags. Tell what is my sin

oyb:

the second coming of iweala s looking like obj's second term,

a mistake in which all the previously earned goodwill will be frittered away.

if she keeps this up, she will end up being vilified by all except the political elite.

she has not shown any signs of tackling or challenging the huge fg overhead -

all her solutions involve transferring nigeria's fiscal woes to the populace

this says one of two things to me - either sheand gej  has a long term strategy of her becoming president in 2015, (which is what all this senior minister stuff looks like) ,

and therefore does not want to rock the boat by vexing the power brokers (as long as it is biz as usual, we dey your back)

she has been compromised and will therefore not do the right thing.