The Nigerian Economic Summit Group (NESG) has advised the Federal Government to create effective tax systems and harmonise the rates in the foreign exchange (Forex) market through relevant policies to address the emerging challenges in the economy.
The group gave this charge in a communiqué issued on Sunday titled ‘Of Hope and Despair…Not Too Late to Turn the Curve’, urging the government to take major steps to sustain the economy and avert more burdens for future governments.
In the communiqué signed by the NESG chairman, Mr. Asue Ighodalo, the group pointed out that despite declining revenues, increasing debt, oil theft, high cost of production and an intense business environment, the government can still adopt appropriate policies to address the worrisome situation despite its short time in office.
The communiqué reads, inter alia: “Today, the country is stuck in an economic morass. Most macroeconomic indicators are spiralling out of control, inflicting severe hardship on more Nigerians. Even though the economy continued to recover in the first half of the year, economic growth was dominated by sectors with low contributions to output and weak job-creating capacity while the oil sector remained in recession for eight consecutive quarters.
“The current state of insecurity is indicative of a nation under siege” despite increased budgetary allocation to defence and national security.
“Nigerians now live in a permanent state of fear as bandits are able to hijack a train and kidnap dozens of passengers, overrun prisons and release hundreds of convicted criminals, and hold hundreds of kidnap victims for months at a time”, the group added.
The NESG further noted that despite some changes to the leadership of the national security apparatus, conditions have not improved, adding that there is hardly any need to itemise the adverse impact of insecurity on food prices, productivity, ease cost of doing business, investor confidence and national pride.
As a way to improve governance, the group advocated for a new social contract between the government and the people to reduce the growing trust deficit, making some recommendations to adopt in this respect.
The group canvassed: “Multiple foreign exchange (FX) markets with significant price differentials create room for speculation, round-tripping, cronyism, and outright graft – with an attendant adverse effect on the economy. There is no better time to harmonise the FX rates than now,” the group added.
“The ongoing face-off between the Federal Government and the Academic Staff Union of Universities (ASUU), which has resulted in the closure of universities for about six months, has become a national embarrassment. The NESG is willing to support the government’s efforts toward developing sustainable governance and funding strategies for tertiary education.
“The Federal Government is urged to devise a pragmatic national security strategy that unconditionally guarantees the safety of lives and properties within the country.
“Also, urgent action is required to ensure food self-sufficiency by prioritising critical value chains and supporting private sector-led interventions to curtail this crisis and build a vibrant and sustainable food ecosystem in Nigeria based on consistent incentives and sanctions”, it added
However, despite its concerns about insecurity and other challenges in the country, the NESG commended the government’s effort to flag off the implementation of the Medium-Term National Development Plan (2021 – 2025) and the passing into law the 2022 Electoral Act.
