Stakeholders urged to explore COVID-19 opportunities, diversify economy
23 June 2020 |
2:55 am
Participants at the Africa Initiative for Governance (AIG) webinar, have underscored the need for the government to leverage opportunities presented by the COVID-19 pandemic
Participants at the Africa Initiative for Governance (AIG) webinar, have underscored the need for the government to leverage opportunities presented by the COVID-19 pandemic and diversify the economy, and spend wisely.
AIG, a not-for-profit founded to inspire the transformation of Africa’s public sector, in collaboration with the Blavatnik School of Government, University of Oxford, hosted a virtual discussion on COVID-19, themed: “COVID-19 and the Oil Price Crash: Nigeria’s Tough Choices.”
The stakeholders argued that the time is ripe for the country to focus on encouraging growth in the informal sector to boost the economy.
They pointed out that COVID-19 has brought about many changes to the fabric of every society, restricting business activities, and causing loss of lives across the world.
According to them, Nigeria is faced with a double-edged crisis comprising COVID-19 on the one hand, and instability in oil prices on the other.
They argued that the latter has been costly, because the 2020 budget was based on forecasted oil prices of $57/barrel, and has compelled the government to revise this to $20/barrel while maintaining proposed production volume at 2.18 million barrels daily.
Specifically, a Professor of Economics and Public Policy at the Blavatnik School of Government, University of Oxford, Paul Collier, said COVID-19 has impacted negatively on the nation’s economy with a fall in government revenues and people’s capacity to spend.
He opined that the government should focus on encouraging growth in the informal sector to boost the economy, as the sector is a major contributor to the Nigerian economy, accounting for a significant portion of employment and national GDP.
He said due to its flexible nature, the informal sector in some ways is better able to adapt to difficulties such as the current pandemic and provides some measure of support to those most in need.
Contributing, the Speaker, House of Representatives, Femi Gbajabiamila, while noting that this was indeed a tough time for the country, said: “If we harness our resources well, Nigeria should be a developed country, not a developing country.”
He noted that the fall in oil prices pose an opportunity for Nigeria to advance the diversification of her economy finally.
In his opening address, the Founder and Chairman of AIG, Aigboje AigImoukhuede, argued that while governments have so far committed $15.6 trillion in response to COVID-19, at an average of $2,042.00 per person, Nigeria’s $6.5 billion in commitments amount to a paltry $32.50 per person.
He said: “COVID-19 has brought an opportunity for Nigeria to rethink and reinvent the way we lead our people so that we can spend smartly, generate more revenue and also get them to act in a manner that will deal with this pandemic and other health issues.”
He suggested that the private sector should collaborate more with the government.
Also, the Vice President, Equitable Growth, Finance and Institutions (EGFI), at the World Bank, Dr Ceyla Pazarbasiogu, recommended the implementation of policies to boost the economy and improve governance.
He stressed the need for the government to take action and implement policies to facilitate Nigeria’s economic growth.
52 mins ago
Data sourced from the Central Bank of Nigeria (CBN) suggest the economy may be relapsing to cash hoarding again a year after the chronic currency scarcity even as the proportion of currency in circulation that is held outside the banking system has returned to the pre-naira redesign level.
1 hour ago
African Development Bank (AfDB) President, Dr Akinwumi Adesina, said that Africa's immense economic potential is being undermined by non-transparent resource-backed loans that complicate debt resolution and compromise countries' future growth.
1 hour ago
President of the Commonwealth Association of Tax Administrators (CATA) and chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has called for increased capacity building to enhance tax administration processes among members of the global body.
1 hour ago
Stakeholders at the 2024 yearly lecture of the Chartered Institute of Bankers of Nigeria (CIBN) have called for the adoption of appropriate credit culture to pave the way for an enhanced loan securitisation process and availability of credit to the real sector.
1 day ago
In a significant strategic shift, LandWey Investment Limited, a leading player in Nigeria's real estate sector, is setting its sights on a public listing, following a bold attempt to acquire UPDC in 2020. According to a statement made available to the media on Wednesday, in Lagos, the property development company said the move marks a…
1 day ago
The Chartered Institute of Taxation of Nigeria (CITN) has warned political leaders against abuse of taxpayers' money, stating that collecting tax revenue from taxpayers without using it judiciously weakens the country's taxation system.
1 day ago
Oil-producing communities in Niger Delta have called for transparency and accountability in the ongoing divestment of oil and gas assets in the region.
1 day ago
The Presidential Enabling Business Environment Council (PEBEC) in its 2023 Business Facilitation Act (BFA) has adjudged the Nigerian Content Development and Monitoring Board (NCDMB) and the Standards Organisation of Nigeria (SON) as best in business facilitation, with 29 agencies scoring below 50 per cent.
1 day ago
Daniel Oyeduntan, a seasoned professional with about a decade of experience in data science and machine learning, is capturing the attention of the technology industry across EMEA.
1 day ago
With a focus on maximizing production from the hydrocarbon assets to enhance revenues and meet production quota, the Nigerian National Petroleum Company Limited (NNPCL) and its joint venture partner in the Awoba Unit Field, Newcross Exploration and Production Limited, have resumed production from the field with an initial average production of 8,000 barrels per day (bpd)
×
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
0 Comments
We will review and take appropriate action.