Victor EzejaAs Nigeria’s economy continues to nosedive, economic experts have stressed the need to create incentives for local producers to upscale domestic production of goods and services to boost economic activities and growth.
The experts gave the advise at Channels TV SunriseDaily talk show on Monday morning.
Dr Biodun Adedipe, founder/Chief Consultant, BAA Consult said, the country has for long failed to address the fundamental issues about the economy, focusing only on the indicators such as unemployment, foreign exchange rate, interest rate and inflation.
He said manufacturing is fundamental
“Manufacturing is fundamental. We had it before, in some sectors of the economy like automotive, textile and a couple of others. What we lost there, how do we regain that? If you prioritize a sector, you put incentives and set clearly defined targets that you want to achieve so that any agency assigned with responsibility on that, will be running on deliverables.”
Ogundipe said the country’s imports far exceed it’s exports, causing high demand for foreign exchange with Import bills growing steadily.
These incidents he said, poses a big challenge on sustainability of the economy.
The economist who is a former member, Presidential Committee of Experts on the Redenomination of Naira in 2008, suggested that the country should in that case select vital sectors that it wants to incentivise and set specific goals about what to produce.
He said Nigeria needs courageous and focused leaders who would push to see that the goal is achieved.
An economist and public policy scholar, Dr. Tope Fasua, while speaking on impact of currency devaluation said the evidence from 1986 to date shows that it has not done the country any food, noting that it has caused steady rise in inflation. “When you devalue a currency, you devalue the people. Our attempt to deregulate the economy has been hampered by policy of devaluation,” Fasua stated.
He suggested what he called “mass attack” on the economy which according to him should be carried out by selecting vital sectors of the economy for boosting domestic production.
“What really works is mass attack. An economy must get to that level of mass attack. Yes, we are doing well in oil sector and agriculture, but we also need to do well in technology.
“The country must incentivise as much as possible. Go to the East of this country, guys are there, in Aba, Owerri and Nnewi and co, producing stuffs; how much incentives are they getting? The government should give them incentives and also make it a national thing. If it’s infrastructure they want, give it to them, if it’s subsidy they need, give them.”
Fasua added that the experts who engaged in production that changed the economy if China and the world, were given incentives by the Chinese government.
He suggested that every state in Nigeria should begin to talk about what they can produce in different sectors.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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