The FSDH Bank Head of Research, Ayodele Akinwunmi, while presenting the monthly economic and financial markets outlook for June in Lagos, at the weekend stated that the nation’s economy is presently in need of fiscal direction, removal of fuel subsidy and transparent channeling of the proceeds to infrastructure and social investments, as well as competitive pricing of electricity tariff to drive investment and boost economic growth.
Though the assessed needs appear to be hard choices, the research by FSDH Merchant Bank Limited, showed that it will only take determination and transparent implementation of the withdrawn subsidy funds to bring the benefits to all.
Available figure from the Central Bank of Nigeria (CBN) shows that Nigerians spent a total of $33.04 billion between 2009 and 2018 as personal travel expenses on education and health related issues, which were bothered on human capacity and infrastructure.
Mr Ayodele Akinwunmi noted that the Next Level growth and development agenda of government would remain idle without the immediate appointment of the cabinet.
The appointment, with their respective portfolios in this month, will enable them start the implementation of the approved budget, while unlocking investments that are on the sidelines.
He explained that there are more compelling reasons now than before for the government to remove the petroleum subsidy and channel the money into some other social intervention programmes that have direct impacts on the poor in view of the low government revenue.
“We also recommend an adjustment to the electricity tariff to drive investments into this critical sector. This will also accelerate the growth of small and medium scale businesses in the country that are handicapped because of epileptic power supply and the high cost of running on generator and other more expensive sources of power.
“There must be deliberate efforts and strategies to improve the quality of education and healthcare delivery in Nigeria, as this will improve productivity and boost economic growth and development of the country. Such efforts will also help the county to conserve the foreign exchange,” he said.
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