Economy

Coronanomics: Nigeria Needs Economic Pragmatism and Robust Institutions – Dr. Temitope Oshikoya

Published

3 years ago

April 8, 2020

Temitope Oshikoya

Nigeria needs to achieve economic pragmatism with the support robust institutions to achieve economic stability amidst the COVID-19 pandemic that has recorded over 230 cases in the country.

Dr. Temitope Oshikoya an economist and CEO of Nextnomics Advisory disclosed this on the WebTV Coronanomics Watch program.

He described the recent N500bn intervention plan of the Federal Government as a good step; a critical one at a time of a viral pandemic, even as Nigeria has also engaged Multilateral Development Banks (MDBs) like the World Bank, International Monetary Fund and the Islamic Development Bank amongst other.

According to him it was important to strengthen Nigeria’s healthcare infrastructure and delivery systems, because good health leads to economic wealth.

Oshikoya emphasized the need for effective governance measures through institutions and pragmatism from policy makers, to navigate the challenges arising from the coronavirus disease.

According to him sustainable economic development depends on productivity and productivity depends on incentives, robust institutions and innovation.

Speaking further, he said that Nigeria needs ‘Economic Pluralism’ which will adopt a combination of financial market roles and efficiency of government institutions.

On the fiscal support from the Federal Government for states, the economist said, “We need an efficient information system to monitor distribution and disbursement which means we need an efficientdatabase”.

“We need to work with the NBS, ICT digital economy information ministry in order to build our infrastructural data base and reach out to the poor and most vulnerable. We need stabilizers from social security arrangements, the insurance sector, and pension administration which the USA is building upon. The local government apparatus is equally very important”.

Taking on the issues further in the area of state intervention, he stressed that the issue of decentralization from each state was important, and equipping the healthcare sector should start from the local government level.

He noted that, “the local government apparatus is very important and strengthens the state’s capacity to handle healthcare, insurance and educational matters competently and efficiently. The focus should be at the local government not federal level”.

He cited Germany as an example of a country that is effectively driving the state decentralization process through strategic interventions at the Federal, State and Local Government levels which is evident in the reduced cases of COVID-19.

The economist acknowledged Nigeria’s high debt and low revenue base with a low tax base characterized by tax revenues constituting only 7% of GDP, compared to Africa’s average of 15% and a tax to GDP ratio of 25% in OECD countries.

“In the short term, we need to support the government in the fiscal space but over the long term we need to build public institutions to enable the government to widen the base for tax revenue”, he said.

In terms of key areas for the Nigerian government to focus on Oshikoya highlighted the following areas:

We need to manage our debt very carefully over the medium term

.we need to mobilise more revenue by improving efficiency in the collection of taxes and reduce corruption

.In terms of public expenditure, we need to focus on more things that government would imply a greater impact of fiscal spending per capita and improved growth of the productive real sector of the economy

(TEMITOPE WAHEED OSHIKOYA is an Assistant Professor of Economics at the University of New Brunswick, Canada, and a former Economics Consultant to the World Bank)

Economy

Senate Confirms Nomination of Yemi Cardoso as CBN Governor

Published

3 days ago

September 27, 2023

Sunrise Nigeria

The Senate on Tuesday confirmed the nomination of Dr Olayemi Michael Cardoso as the Governor of the Central Bank of Nigeria, CBN.

This is as questions are being raised as to the legal status of suspended CBN Governor Godwin Emefiele whose sack or resignation hasn’t been confirmed by the Federal Government.

According to the CBN Act, the President requires the endorsement of 2/3 majority of the Nigerian Senate to remove the Governor. There are other conditions that may lead to his removal, none of which has been established.

Cardoso was screened alongside four nominees for the positions of CBN Deputy Governors, to steer affairs of the apex bank in the next five years.

The deputy governors include: Mrs. Emem Nnana Usoro, Mr. Muhammad Sani Abdullahi Dattijo, Mr. Philip Ikeazor, and Dr. Bala M. Bello.

Recall that last week, Cardoso resumed as the CBN governor in an acting capacity pending his screening and expected confirmation by the Senate.

Meanwhile, the Senate has also scheduled the screening of two additional ministerial nominees by President Bola Tinubu for Tuesday, October 3, 2023.

The President, while the National Assembly was on break, appointed the duo of Dr. Jamila Ibrahim and Ayodele Olawande as Minister of Youths and Minister of State for Youths respectively.

Economy

Cost of Living: Kogi, Lagos and Rivers Dwarf Other States in NBS Report

Published

2 weeks ago

September 16, 2023

Sunrise Nigeria

By Elizabeth Okwe
…

The Nigeria Bureau of Statistics (NBS) has revealed that Kogi, Lagos, and Rivers are the most expensive states to live in, based on inflation rates for August 2023.

In its latest Consumer Price Index data released on Friday, the NBS said on a year-on-year basis, Kogi led the way with the highest all-items inflation rate at 31.50 per cent, followed closely by Lagos at 29.17 per cent and Rivers at 29.06 per cent.

In contrast, Sokoto recorded 20.91 per cent, Borno 21.77 per cent, and Nasarawa 22.25 per cent, recorded the slowest rise in headline inflation on a year-on-year basis.
When examined on a month-on-month basis, the trend continued, with August 2023 seeing the highest increases in Kwara at 6.07 per cent, Osun at 4.36 per cent, and Kogi at 4.35 per cent.

While Sokoto recorded 1.38 per cent, Borno at 1.73 per cent, and Ogun at 1.89 per cent recorded the slowest rise in month-on-month inflation.
Specifically for food inflation, the figures for August 2023 showed a similar pattern, with Kogi again taking the lead with the highest year-on-year basis food inflation rate at 38.84 per cent. Lagos followed closely at 36.04 per cent, and Kwara at 35.33 per cent.
On the other hand, Sokoto 20.09 per cent, Nasarawa 24.35 per cent, and Jigawa 24.53 per cent recorded the slowest rise in food inflation on a year-on-year basis.

On a month-on-month basis for the same period, Rivers at 7.12 per cent, Kwara at 5.89 per cent, and Kogi at 5.80per cent recorded the highest increases, while Sokoto recorded 0.50 per cent, Abuja at 1.30 per cent, and Niger at 1.40 per cent experienced the slowest rise in food inflation.
The report noted that the surge in food inflation can be attributed to the significant price hikes in various essential food items, including oil and fat, bread and cereals, fish, fruit, meat, vegetables, potatoes, yam, and other tubers, vegetables, milk, cheese, and eggs.

Economy

Tinubu Nominates Olayemi Cardoso to Replace Emefiele as CBN Governor

Published

2 weeks ago

September 15, 2023

Sunrise Nigeria

Cardoso

By Elizabeth Okwe and Ojone Grace Odaudu
…
President Bola Tinubu has nominated Dr. Olayemi Michael Cardoso to serve as the new Governor of the Central Bank of Nigeria (CBN), for a term of five (5) years at the first instance, pending his confirmation by the Nigerian Senate.

A statement issued on Friday by Special Adviser to the President on Media and Publicity, Ajuri Ngelale, said the directive is in conformity with Section 8 (1) of the Central Bank of Nigeria Act, 2007, which vests in the President of the Federal Republic of Nigeria, the authority to appoint the Governor and Four (4) Deputy Governors for the Central Bank of Nigeria (CBN), subject to confirmation by the Senate of the Federal Republic of Nigeria.

Currently Chairman of the Board of Directors of Citibank Nigeria, Dr Yemi Cardoso is a financial and development expert with over thirty years’ experience in the private, public and not-for-profit sectors.

Furthermore, President Bola Tinubu has approved the nomination of four new Deputy Governors of the Central Bank of Nigeria (CBN), for a term of five (5) years at the first instance, pending their confirmation by the Nigerian Senate, as listed below:

Glo
(1) Mrs. Emem Nnana Usoro

(2) Mr. Muhammad Sani Abdullahi Dattijo

(3) Mr. Philip Ikeazor

(4) Dr. Bala M. Bello

“In line with President Bola Tinubu’s Renewed Hope agenda, the President expects the above listed nominees to successfully implement critical reforms at the Central Bank of Nigeria, which will enhance the confidence of Nigerians and international partners in the restructuring of the Nigerian economy toward sustainable growth and prosperity for all”, the statement added.