Wrong policy choices, strain the economy – Nigerian Economic Summit
The Nigeria Economic Summit Group (NESG) has said that wrong policy choices can cause a heavy strain on an ailing economy. They, therefore, advise the Federal Government to consider all economic policy choices before making decisions in order to FastTrack economic growth.
This statement was derived from the recently launched 2021 Economic Outlook. It also cited that the closure of land borders is one of such policies that ended up exacerbating the county’s economic challenges.
The NESG urged the government to always liaise with relevant stakeholders, for a proper assessment of prevailing situations, before taking policy decisions.
“Even before the outbreak of COVID-19, the implementation of land border closure resulted in a decline in earnings from non-oil exports.
“This policy decision reversed the few gains made in the last couple of years and further exacerbated the challenges facing the economy.
“In addition to a sharp and consecutive increase in prices, the inflation rate rose from 11 per cent in August 2019 to 14.9 per cent in November 2020. The economy has recorded consecutive trade deficits since the fourth quarter of 2019.
“The closure was a heavy policy decision that required the input of the private sector, especially given its implications on businesses, both formal and informal players,’’ it said.
The group, however, commended the Federal Government for taking some hard policy decisions that would impact positively on the economy in the long run.
“Nigeria has implemented some tough reforms in 2020, such as the removal of fuel and electricity subsidies and a massive programme on harmonisation of citizen’s data. These must be consolidated with swift implementation of security reforms and sanitising the business environment, both of which are crucial in attracting investments into critical sectors of the economy.
“In addition, state governments must be given legislative and policy support to explore the opportunities and resources in their respective states. The urgency of these reforms must be prioritised, going into the next decade,’’ it advised.
Suzan O/NAN
