Dr Doyin Salami, a Senior Lecture at Lagos Business School and a member of the Central Bank of Nigeria’s Monetary Policy Committee, has called for deliberated action by the Federal government towards utilizing private capital for sustainable and inclusive growth of the economy.
The call was made at the NSE-Bloomberg CEO Roundtable held in Lagos on Friday, June 16, 2017 with the theme: Innovating Out of Nigeria’s Recession: Exploring New Paradigm for Nigeria’s Economic Growth.
Dr. Salami noted that the country had hit the bottom in terms of recession, but the government ensure commitment to private capital through protecting the private sector for economic development. He further stated that getting out of recession is not as important achieving sustainable and inclusive growth.
“What will determine where we go from here is commitment to the reforms we have seen… coming out of recession was not the major thing but growing rapidly and sustainability were the key things.”
“If Nigeria grows less than three per cent, it means that per capital income is still very low,” he stated.
He further stated that the current inflation rate is still bad for the Nigerian economy as it indicates increase in asset-to-capital risks in the country, and may scare away foreign portfolio investors away from the country.
Also noting the pressure of high inflation rate on the consumers’ purchasing power, Mr Salami noted that “though our inflation rate is declining, but the month-on-month CPI on increasing which should be a concern for policy makers.”
It means there is a high pressure on consumers, hence he called for the government to consider reviewing upward the current wage rate in the country, as inflation rate has already cut off 50% of the wage rate already.
“Wages and salaries are still shrinking in spite of the fact that the economy is coming out of recession. We need to find creative measures to take consumers out of pressure,” Salami added.
Other speakers at the Roundtable such as the Federal Minister of Finance, Mr Kemi Adeosun noted that the Nigerian economy situation and what the Buhari’s Administration met can be explicitly described by the axioms of Mr Tai Solarin: “May your road be rough”.
She futher noted that the government believed that what comes after rough is ease, and effort are geared towards achieving that.