September 26, 2023

Renowned economist, Bismarck Rewane, says the economy of the country must be freed from the oligarch’s interest, state capture and shifting state resources to private pockets and leading to inefficiencies.

According to him, for the Nigerian economy to bounce back with a strong currency, the government must free it from the interest of a few rich people.

He said the naira would be appreciated again but added that this might not happen until the early parts of 2024.

Rewane, who was a guest on Channels Television’s Politics Today on Monday, said that the government must allow the market to determine pricing.

“You got to believe in the reform economics, if you don’t believe in it then you can’t do anything about it. Secondly, you got to stop state capture, you can’t have oligarchs and barriers to entry.

“You must allow the market to determine pricing. By reducing subsidy on petroleum products, and reducing subsidy in exchange rates, those monies shift to the government. So, how is the government spending the money coming their way?

He noted that the palliatives introduced by the Federal Government in the wake of the removal of fuel subsidy won’t address the fundamental issues affecting the economy but only a temporary measure.

“In all fairness, the word subsidy means temporal relief, it doesn’t address the fundamental issue, the fundamental issue is that there must be growth and there must be increase in productivity,” Rewane said.

According to the economist, Nigeria needs to spend big on projects that increase productivity, block leakages, encourage people to invest, and ensure that the interest rate is close to the rate of inflation so that there will be equilibrium.

He sees signs of the economy bouncing back but maintains that the government also needs to come clean and be straightforward with the true position of things at the moment.