Expert’s Insights on Reviving Nigeria’s Economy

Expert’s Insights on Reviving Nigeria’s Economy

Expert’s Insights on Reviving Nigeria: Dr. Oluwatobi Oyefeso, an economist with extensive experience in the financial markets, including serving as the Managing Director of the Nigerian Capital Market Institute, shares valuable recommendations on revitalizing Nigeria’s financial services industry. Here are his key insights:

Policy Objectives for Strengthening Nigeria’s Financial Services: Dr. Oyefeso emphasizes the importance of having effective money markets, foreign exchange markets, pension markets, insurance markets, and capital markets. These should be supported by structural reforms, regulatory frameworks, and institutional reforms. Key policy objectives include:

1. Transforming regulatory frameworks and institutions.
2. Stabilizing the foreign exchange rate.
3. Deepening and diversifying financial market products.
4. Implementing orthodox monetary policies.
5. Enhancing coordination among regulatory institutions.

Strategies for Boosting Nigeria’s Capital Markets: Dr. Oyefeso suggests several strategies to strengthen Nigeria’s capital markets, including:

1. Privatizing government-held assets.
2. Improving mergers, acquisitions, and takeovers processes.
3. Establishing a Stabilization Fund and Policy Committee.
4. Creating a unified Securities Investor Protection Fund.
5. Forming an Inter-Regulatory Agency Committee for better policy coordination.

Challenges Hindering Financial Market Development: Various challenges affect different sectors within Nigeria’s financial markets, including:

1. Market shallowness and illiquidity.
2. Lack of transparency and efficiency.
3. Insider trading and market infractions.
4. Inadequate policy cooperation and coordination.
5. Currency risk and regulatory issues.

Coordinating Attention and Government’s Role: To address these challenges, Dr. Oyefeso suggests establishing a “regulator of regulators” to coordinate and monitor policy objectives, supervising statutory functions, and providing checks and balances. This coordinating attention should ensure that public debt is used for productive capital projects and foster phenomenal revenue generation.

Managing National Debt: Dr. Oyefeso Expert’s Insights on Reviving Nigeria highlights the importance of prudent debt management, emphasizing that debts should be used for revenue-generating capital projects, not consumption. The government should also consider re-evaluating and rescheduling national debts with lenders.

Rethinking GDP as an Economic Metric: Dr. Oyefeso questions the reliability of GDP as an indicator of national prosperity. He suggests transforming GDP into a series of indicators that capture income distribution, environmental impact, well-being, and other aspects of societal progress.

In conclusion, Dr. Oyefeso Expert’s Insights on Reviving Nigeria provides valuable insights into the complexities of Nigeria’s financial services industry and offers practical recommendations for revitalizing the sector and fostering sustainable economic growth.For more business news visit thedailycourierng