Why Nigeria Needs To Unlock Economic Liquidity - Wale Edun - PROSHARE
Speaking at the sidelines of a recent economic forum, Mr. Wale Edun, former Commissioner of Finance, Lagos state shared his perspective on how Nigeria can unlock liquidity, to drive its economy amidst the challenges of revenue and the uncertainty in the global commodity prices.
The Chairman, Chapel Hill Denham Edun explained that the number one goal for any nation in pursuit of a global sustainable development agenda come 2023, is the eradication of poverty. To achieve poverty-reduction, he believed that it will require economic growth, and to achieve growth, liquidity is vital.
Speaking further Edun said that part of the key elements required for the economy to grow was the seamless inflow of investments and foreign exchange which is the way to go to build productive capacity and manufacturing and employment momentum.
He noted that from the fiscal side Nigeria was faced with high debt servicing in the immediate term, reinforcing the need for liquidity to finance projects that cover areas like infrastructure (Power, Road, Rail, Bridges etc).
Lagos State’s erstwhile finance commissioner argued that Nigeria had massive assets which were avenues for unlocking liquidity through processes like liberalization or partial privatization of ‘State-Owned Enterprises,’ SOEs, in the country.
He added that at a time when the government needs to meet debt obligations, particularly to foreign creditors, the economic and financial managers must be creative in exploring alternative financing options to grow the economy.
The Chairman of Investment Bankers, Chaphill Denham, acknowledged the current intervention efforts of the Central Bank of Nigeria (CBN) in some sectors of the economy, but stated that despite the laudable initiatives there was not enough deepening of liquidity.
He called on the Nigerian fiscal authorities to learn from India, Saudi Arabia and China that achieved large-scale foreign direct investments into their economies through the liberalization of critical state enterprises and ventures.
He tasked the new fiscal policy makers to be inaugurated next week to work out strategies to remove millions of Nigerians from poverty, and also to grow the economy.
“To grow the economy, we need investment and the quickest way we can get investments that will really impact growth and address poverty is attracting foreign direct investment (FDI), and foreign liquidity which takes into consideration Diaspora remittances” He said.