Nigeria Needs Private Sector Driven Economy To Avert Recession – Agbakoba

Following the outrage caused by fuel price hike, increase in electricity tariffs coupled with the impact of COVID-19 pandemic on daily living of the common Nigerian, a former President of the Nigerian Bar Association, Olisa Agbakoba, has said that developing a private sector driven and holistic economic plan is critical to cushioning the current challenges facing the economy.

Agbakoba, speaking on TVC News Business Nigeria program, stressed that the fuel subsidy removal is a technical correction that could be of great benefit to the Nigerian economy in the long-term.

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He explained that while the implementation of the Economic Sustainability Plan could help cushion the impact of the pressure on the economy, there is need for the private sector to be integrated into such economic plans to ensure efficiency.

“We have to see both the subsidy removal and electricity tariffs increase as a technical correction, let us endure the pain now and expect the gains.

“There is need for the government to educate the masses better on the benefits of these adjustments. If the government would be focussed and ensure social development as proposed in the Economic Sustainability Plan, that would go a long way to cushion all of these pressure.

“Again, the Economic Sustainability Plan need to be private sector driven and holistically integrated.”

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He explained that the government should set up institutions and regulations to aid a private sector led economic growth.

He added that private sector investment is key to generating domestic revenue which has remained below expectations.

Speaking on the increased national debt profile, Agbakoba said that mismanagement of borrowed fund need to be checked, as borrowed funds are supposed to be channelled to improve infrastructure that would yield economic growth.

“We do not have problems with borrowing, but the issue is always in the ways these funds are managed. When an economy is down, there is need for aggressive fiscal policy and inflow of cash.

“The issues we have is debt to revenue ratio and we need to adjust it. Also our population to GDP is another potential problem that would further shrink the economy in the next few years.

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“Our major problem is that the capacity to generate revenue has been manipulated, the government need to articulate public borrowing and make sure it meets the infrastructural and basic need that would boost economic growth.”

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