Nigeria’s Economy Must Be Freed From Oligarch’s Interest, Says Rewane


He said the naira will appreciate again but added that the appreciation might not happen until early parts of 2024.


Renowned economist, Bismark Rewane, says for the Nigerian economy to bounce back with a strong currency, the government must free it from the interest of a few rich people.

He said the naira would be appreciated again but added that this might not happen until the early parts of 2024.

Rewane, who was a guest on Channels Television’s Politics Today on Monday, said that the government must allow the market to determine pricing.

He noted that the palliatives introduced by the Federal Government in the wake of the removal of fuel subsidy won’t address the fundamental issues affecting the economy but only a temporary measure.

“You got to believe in the reform economics, if you don’t believe in it then you can’t do anything about it. Secondly, you got to stop state capture, you can’t have oligarchs and barriers to entry. So, this economy must be freed from the oligarch’s interest. An oligarch interest means state capture, shifting state resources to private pockets and leading to inefficiencies.

“You must allow the market to determine pricing. By reducing subsidy on petroleum products, and reducing subsidy in exchange rates, those monies shift to the government. So, how is the government spending the money coming their way?

“In all fairness, the word subsidy means temporally relieve, it doesn’t address the fundamental issue, the fundamental issue is that there must be growth and there must be increase in productivity,” Rewane said.

According to the economist, Nigeria needs to spend big on projects that increase productivity, block leakages, encourage people to invest, and ensure that the interest rate is close to the rate of inflation so that there will be equilibrium.

He sees signs of the economy bouncing back but maintains that the government also needs to come clean and be straightforward with the true position of things at the moment.

NzogbuNzogbu:
Unless it's freed from Tinubu incompetent hands

How would an economy grow when the minister of defense wants it's citizens to negotiate with kidnappers.

But na you dey find investors when be food for kidnappers

Burob:
Because it is not you & your people that spoilt Nigeria, it is Tinubu you are blaming.

ivolt:
Who are the oligarchs?
Aren't they the same people funding Rewane's business?

Karemarealty288:

Chaugory Chaugory , Dangota, bla bla bla bla...

RepoMan007:
The economist spoke in principle, don't introduce tribal division in order to derail and take away the heat from your principal.

ivolt:

You have no idea.

Karemarealty288:
share...

RepoMan007:
The possibility is there for Naira to bounce back to around N700 a dollar but I believe it is tied to Dangote refinery firing.

That's the only major import substitution we are about to witness that can spur the Naira on. No other mean in sight. Harvest has come and for the first time in history, food prices barely crashed. Too much money in the system means people are using the new found wealth to stock up from hinterlands and selling at massive profit that hides the crash in prices.

Before our N100 a post agents arrive to blame emefiele for printing money, remember, Tinubu once suggested to Buhari we print money during the covid crisis.

Burob:
Because it is not you & your people that spoilt Nigeria, it is Tinubu you are blaming?