CIS, stakeholders seek to boost economy

The President of the Chartered Institute of Stockbrokers, Oluwole Adeosun, and other stakeholders in the economy have suggested that the deployment of Public-Private Partnerships model and increasing revenue from tax, as well as the provision of liquidity, will enhance the growth and development of the Nigerian Gross Domestic Product.

According to a statement from the CIS, these were some of the solutions to Nigeria’s challenges proffered at the 2023 Annual National Workshop of CIS in Abuja, themed, ‘Leveraging the Capital Market to drive Public-Private Partnership (PPP) for effective National Economic Growth, Issues.’

Addressing the workshop participants, Adeosun lamented that the last record of Nigerian double-digit GDP growth was in 2002 when the indicator grew by 15.33 per cent. According to him, most of the fundamentals of the country’s economy were built in the 1970s and 1980s.

Adeosun explained that the adoption of the PPP model would boost economic growth and development and lift millions of Nigerians out of poverty.

He said, “It has been established globally that one of the most effective routes towards achieving fast-paced economic growth, is the adoption of Public-Private Partnerships. While we accept that this has been tried in Nigeria to some extent, the emphasis has not been as it should be. It is our conviction at the Institute that utilising the capital market optimally will significantly enhance the effectiveness of PPP in accelerating the GDP growth in Nigeria.

“Our present infrastructure deficit is estimated at $3tn over the next 30 years, constituting 30 per cent of the GDP as against 70 per cent by other middle-income nations. This constitutes a setback which needs to be corrected. At CIS, we believe that with genuine concern, altruism, innovative ideas, patriotic zeal and political will on the part of the government, our economy will be set on the right footing.”

Speaking on the topic, ‘Macro-Economic Policy Framework for Nigeria,’ the Chief Executive Officer, Economic Associates, Dr Ayo Teriba, explained that the government should address the issue of liquidity to tackle insecurity, rising inflation and other macroeconomic vagaries affecting Nigeria.

He said, “The basic economic problem in Nigeria is illiquidity. This is in the form of fiscal illiquidity, forex illiquidity or systemic illiquidity. The dominant source of illiquidity is the challenges associated with exports and the inability of Foreign Direct Investment to thrive due to a lack of enabling business environment. Growth is a consequence of liquidity. Countries must get liquidity right. Nigeria is rich in assets and should take advantage of assets to grow the economy rather than rely solely on revenue from taxation.”