NIGERIA ECONOMIC CRISIS – The human rights and maritime lawyer, pointed out that cohesion was needed at this point, that the tight liquidity operated by the Central Bank of Nigeria, CBN, where it jerked up its Monetary Policy Rate (MPR) to 14 per cent is ridiculous, adding that CBN’s focus on Forex management is rather encouraging round tripping and creating asymmetry in the system.
He also advised the CBN to focus on productive value of the economy and not the numerical value of the naira, saying: “The full deregulation of the forex market to allow level playing field and removing distortions such as round tripping, will ensure that at least $20 billion inflow will instantly occur.”
The former NBA Chairman, then went on to list a number of solutions for President Buhari to revive the economy saying that there was an immediate need for “a presidential proclamation at the National Assembly, switching from austerity to growth policy, the federal government needs to spend more to boost growth.” Agbakoba, however, pointed that contrary to popular opinion, President Buhari does not need the envisaged economic emergency powers to make a turnaround.
He noted that former President Shehu Shagari had it in his time and still failed, adding that the so-called economic emergency powers is also not working in Venezuela. Agbakoba said that to revive the economy: “Nigeria must spend its way out of recession; establish a National Treatment Policy- Fiscal and trade Protection Policy, establish urgently a Development and Guarantee Bank; prepare Public Sector Borrowing Requirement, PSBR and borrow as our debt Ratio can sustain this, as well as develop Assets securitisation.”
In conclusion, the lawyer said that there is need for the Federal Government to pay-off the country’s domestic debt to inject liquidity in the system. Read More