Andrew Uviase is the Managing Partner of Ecovis OUC (Chartered Accountants), a leading consulting firm in tax, accounting, auditing and compliance services. With a Master’s Degree in Economics and a special interest in money and banking and membership of the Institute of Chartered Accountants of Nigeria and Chartered Institute of Taxation of Nigeria, he has deep knowledge of the Nigerian economy. In an interview with GEOFF IYATSE, he shares his perspectives on the implications of the current reforms on the economy and how the negative impacts could be better managed for the overall good of the citizens.
Economic agents are worried about the current state of the foreign exchange market, especially considering the apparent depreciation of the naira. What do you think is wrong and what could be done?
The policy of the current administration is to allow market forces of demand and supply to determine the value of the naira. Theoretically, market forces are the most suitable mechanisms for allocating scarce resources and correcting distortions in the FX market.
However, this position rests on a critical assumption that there are many economic agents on both the demand and supply side. That is the assumption of perfect competition. Unfortunately, the assumption does not hold for the FX market because whereas there are many people on the demand side, supply is inelastic because of the productive base of the economy.
Hence, supply will not increase in response to price. Price increases (I mean lowering the value of the naira) about other currencies can only lead to inflation as we are currently witnessing because we do not have a sufficient productive base to earn more dollars. This is what we call market failure, which is the inability of the market to allocate resources efficiently. I, therefore, strongly recommend that the government should revert to a managed float by channelling our scarce FX resources to the productive sectors.
It doesn’t seem the challenges thrown up by the removal of fuel subsidies are over…
This is one of the best things that has happened to the economy in recent times. The removal has, in the short term, freed resources for the government at various levels to run the country. In the long term, it will help us to channel resources to the most productive sectors of the midstream and downstream subsectors of the oil and gas industry. However, it has created inflationary pressures and general difficulties in the country.
Sometimes, I tend to believe that it would have been better to address the supply side by fixing the refineries before removing the fuel subsidy. This is so because what we have now is more difficult to manage. We have fuel import exacting pressure on FX, which puts pressure on fuel price, which again increases the cost of import. The cycle continues. At this rate, it is increasingly becoming more difficult to control the price without some form of government intervention.
Overall, how do you think that the challenge of stunted development could be overcome?
I tend to think that the greatest impediment to our development is a lack of discipline. Specifically, we must return to the discipline of planning where there is a deliberate effort to set quantifiable targets over a given period.
Also, government must be seen as a continuum when an incoming government sees the policies and programmes of its predecessor as national matters that must be driven to a logical conclusion. Historically, we can see that the greatest developments in the country happened during the period of development plans in the 1970s. We must be deliberate in creating and implementing programmes that support accelerated and inclusive growth to deal with the challenges thrown by slow development.
What is your assessment of the current administration in terms of its handling of the economic challenges?
Quite frankly 100 days is too short in the life of an administration to be able to correctly assess the impact of its policies. However, we can say that so far so good. We must commend the bold steps taken by the current administration thus far in the area of fuel subsidy removal, the inauguration of a tax reform committee and FX market liberalisation policy. We believe that if the policies are properly managed and implemented, the economy will soon begin an upward swing. And Ecovis OUC’s coming in at this time is part of our little way of joining forces with the current administration to turn things around. We welcome inquiries and are enthusiastic about engaging with the Nigerian business community.
What is the significance of the recent transformation of Kreston OUC’s to Ecovis OUC for the business community?
Certainly, this transformation marks a pivotal moment for the Nigerian business landscape. By adopting the name Ecovis OUC, we align ourselves with the global Ecovis network, renowned for its European continental heritage and exceptional expertise as well as service delivery. This transition brings together international excellence with local insights, offering Nigerian businesses unparalleled consulting services tailored to their unique needs and challenges.
The benefits are manifold. Firstly, our integration into the Ecovis network grants Nigerian businesses access to a wealth of international expertise, while retaining the advantage of local insights. This ensures a seamless navigation of both global and local intricacies. Secondly, our bespoke solutions cater comprehensively to businesses of all sizes, addressing, fiscal, managerial and administrative concerns.
Moreover, the personalised consultation we provide, supported by a network of over 10,000 experts worldwide, ensures clients receive well-rounded solutions for their distinct challenges. Our strength lies in our ability to truly understand our clients, extend a helping hand and communicate in a language that resonates with them. We go beyond the role of mere advisors; we aspire to be genuine business partners. Our aim is not only to assist clients in navigating challenges or finding solutions but to proactively showcase the potential that can drive their success. This proactive approach is embedded in our DNA.
When we speak of partnering with our clients, we also mean that the entire Ecovis network partners with them. This collaboration ensures that wherever their ventures take them, we are there as guides, facilitating well-informed business decisions. Our commitment to our clients is unwavering. We take the time to truly know them, immersing ourselves in their operations, understanding their organisational intricacies, and meeting their unique demands. Our connection to the extensive Ecovis network across the globe empowers us to cater to their requirements across different jurisdictions whenever the need arises.
Efficient service delivery is a concern in the financial service space. What has been your experience?
Delivering exceptional consulting services has always been our forte. With our transition to Ecovis OUC, we commit to expanding and refining our service spectrum. Leveraging our integration into the Ecovis network, we will use technology and human expertise to deliver superior service. As you may be aware, Ecovis is a member of the Forum of Firms, which is a grouping of top-rate global accounting Firms that have recognised procedures to execute the audit. Ecovis is fully aligned and integrated with a global information network for cross-border tax solutions like Transfer Pricing and Tax treaties, thus enabling us to offer even more specialised solutions finely tailored to the Nigerian business landscape.
Could you shed light on your approach to personalised consulting services?
We believe that the best ideas are born through dialogue. That is why we prefer to talk with our clients face to face-and partner with them.
In business, be it national or international, success depends on having a partner you can deal with, working at the same level and with an extensive understanding of your concerns and opportunities.
Your advisor at Ecovis is himself an experienced business person. Together, you share a common bond on which trust and mutual respect are developed, which allows your business to reach its full potential.
We recognise that every business is unique. This is why we assign each client a personal advisor – an adept business professional who understands both local intricacies and international trends. These advisors have immediate access to our expansive network of experts ensuring clients receive holistic solutions finely attuned to their specific requirements. We are always at the deal table with our clients. That is the entrepreneurial approach to consulting. We are Partners with our clients in finding unique solutions to their business challenges.
The transformation to Ecovis OUC presents Nigerian businesses with a distinct home advantage. Operating in over 80 countries, including Nigeria, we are poised to offer immediate international and local support.
Whether yours is an established international business dealing with cross-border issues, a family-owned company, the branch of a major corporation or a government organisation, ECOVIS is at your side wherever your business takes you.
With Ecovis, you will always have a home advantage. Being there means less communication hassle and increases our understanding of your special situation. We aim to work in partnership with businesses to provide the support and accessibility of a small company with the wealth of experience that can be expected from a global organisation.
This obliterates communication barriers and bolsters our comprehension of the local business terrain, allowing us to seamlessly provide bespoke solutions aligned with the Nigerian context and International realities.
Our mission is to empower Nigerian businesses to excel on both local and global fronts. By uniting international expertise with local insights, we equip businesses with the tools to surmount challenges and seize opportunities. Whether it’s tax consultation, accounting, auditing, or compliance advice, Ecovis OUC is committed to delivering comprehensive solutions that foster growth and success.
