CEIBS urges govt to boost reserves, explore local borrowing

To address fiscal challenges in the country, especially in respect of fund paucity for projects, stakeholders at the China Europe International Business School (CEIBS) have urged the nation’s economic managers to explore local sourcing of funds, rather than seeking foreign loans.

According to the stakeholders, government should explore internal sources for borrowing rather than looking outwards and boost savings in reserves to serve as buffer against economic shocks.

Speaking at a forum organized CEIBS, the school’s Professor of Economics, , who led the discussion on borrowing analysed current global economic trend to establish that borrowing locally and in local currency is with less encumbrances, and remains a viable alternative for nations.

He however noted that to borrow locally, the funds must be available, adding that government at all levels in Nigeria should fashion out strategies to boost savings and create a pool of capital resource from which they can borrow to develop the country.

Citing experience of China where the initiative was said to have remarkably helped the country to weather the storm of economic recession, the stakeholders expressed the need to stimulate the economy in recession, as well as need for national integration for economic growth in a diversified society and government policies.

The Executive Director, CEIBS Africa, Prof. Mathew Tsamenyi, said the seminar was part of the school’s corporate social responsibility and contribution to the Nigerian economy.

“We identify pertinent issues confronting the Nigerian economy, especially micro-economic issues. The idea is to bring people from the government and private sectors together to take them through the issues, and to look at the best practices around the world and be able to relate them to the Nigerian contest,” he said.