The Association of Bureaux De Change Operators of Nigeria (ABCON) has canvassed the need for government to fast-track the implementation of the power sector reform programme as a desirable step towards providing stable electricity for households and businesses in the country.
This is even as it called on its member-entities BDCs to adopt the principle of currency diversification in order to mitigate the risks associated with currency fluctuations arising from socio-economic and political uncertainties in the developed economies, particularly the United States and Europe
These recommendations were contained in the group’s Quarterly Economic Report for Q1, 2019.
In the report, the umbrella body of licensed Bureau de Change (BDC) operators in the country observed that Nigeria’s score of 35 in terms of ease of getting electricity captured in the latest World Bank Ease of Doing Business report, was lower than the average for Sub-Saharan Africa and much lower than other comparable middle-income countries.
The association maintained that access to stable electricity remained a major constraint to doing business in Nigeria, thereby requiring government’s special attention to meet electricity demand for the nation’s socio-economic development.
It stated: “Weighing on the emergence of Nigeria from a recession in 2017, the country’s continued economic recovery will be slow, according to a new economic analysis.
“However, the analysis showed, labor-intensive sectors remained weak, which contributed to an increase in the rate of unemployment and underemployment throughout 2018 into Q1 2019. Level of poverty is also believed to have increased notwithstanding the exit from recession.
“The reviews have identified the power sector as a critical area that government should focus attention to sustain the economic recovery.
“With the electoral victory of the incumbent government, ABCON review is recommending attention in the following sectors for full recovery from the recent recession: Radical implementation of the power sector reform program to ensure access to stable electricity supply for businesses and comprehensive diversification of the economy.”
“Uncertainties observed from the socio-economic/political environments in Europe and US/China relationships, currencies will be prone to undue volatility and fluctuations.
“British pounds position might be higher in risk due to the uncertainties surrounding BREXIT thus, BDC forex dealers are advised to apply the principles of diversification of portfolio of currencies to reduce the financial risks during second quarter of the year”, the association added.
