The Chartered Institute of Stockbrokers (CIS) has urged the federal government to ensure speedy implementation of its new measures aimed at reviving the Nigeria’s economy.
The President of the Chartered Institute of Stockbrokers (CIS), Mr Oluwaseyi Abe, who made this call in Lagos said that growth should be equitable and inclusive for enhanced overall development of the economy
Abe who expressed optimism in the potency of the government’s economic revival strategy, said that drastic change in global oil price destabilized government projections and depleted our foreign reserves because the structure of the economy is monolithic and not shock-resistant Addressing participants at the stockbrokers annual conference, Abe explained that the Conference theme ‘’ Building New Pillars, Creating New Values for Sustainable Development’’. was of particular importance, coming at a critical time when Nigeria’s economy is in a recession, with a threat of depression lurking around.
” We commend the apex bank for the re-introduction and re-modelling of the floating single foreign exchange rate . It is a bold and positive initiative which is in accordance with the tenets of democratic capitalism, which highlights market driven systems, free participation within individual limitations and the ‘’invisible hand”, he added.
He also noted that deficit spending and dollar inflow are some of the short-term panacea for the present predicament, believe that government must look beyond the short -term measure towards building a more sustainable sustainable economy.
He noted that this is evidenced in the grate of unemployment currently at 13.3 per cent; 3.3 percent above the recession threshold of 10 per cent, and 7.7 per cent nearer depression benchmark of 20 per cent.
” We are not alarmed or confounded by the turn of events, because we know that Nigeria is a part of a globalized economy and markets, with changing perspectives, where the only constant is change.
“However, we believe that our economy should have been proactively structured and positioned to enable it shift balances and absorb shocks or hits when they occur, without having a severe and destabilizing impact as we are currently experiencing.”, Abe said
According to him, Nigerian economy is precariously supported by a single pillar, with oil as the mainstay, accounting for 90 per cent of exports, 25 per cent of Gross Domestic Product(GDP) and 80 per cent of government revenue. As a result, when the global oil market shakes, our economy quakes.
Abe stated that the single pillar structure of the economy necessitates the need to build more pillars for its variegation and fortification .
He explained that the Conference theme focuses on development, which naturally, should be a corollary of growth. “There could be growth without development as has been the case in the past. But we believe that growth should be equitable, and that equitable growth and development should be the holistic target objectives of nations tending towards true prosperity.”, he said
“The sub-themes of the conference highlight some of the new pillars, figuratively speaking, that need to be built to fortify the economy. They include Industrialization which is the hallmark and pillar for sustainable development. We cannot have equitable growth without a growing manufacturing sector with its multiplier effect.
” And to catalyze industrial growth faster the ‘pillar’ of the capital market is of utmost importance. Any efforts towards driving growth and development without an optimal use of the mechanism can only short-change the economy.
” Developed nations attained great heights on the back of their capital markets, which should serve as a lesson in development for developing nations.
” Nigeria should by now be driving towards maturity, just like South Africa with vibrant capital markets; and which is building a world class infrastructure, a prerequisite for poverty reduction.”, he said According to Abe other sub-themes of the conference address the other necessary pillars, namely agriculture, leadership, education and value re-orientation.”.