NIGERIA; IN SEARCH OF THE “BIG PUSH”

                                                                 

NIGERIA; IN SEARCH OF THE “BIG PUSH”

By: Abiola Rasaq

There is no point reeling out some macroeconomic data at this time because they are already stale, even to the least expected class of Nigerians. Fishermen, farmers and herdsmen have overnight become “renowned economists”, advocating divergent economic theories to address the current quagmire that continues to deepen poverty levels in the most populous African nation.  The debate remains inconclusive, as regards the fastest and most effective way of stimulating Nigeria’s economy out of recession. The fiscal authority seeks lower interest rate environment, which is expected to enhance the much desired liquidity for all economic agents; government, businesses and households, with hope of spending our way out of this economic trough. On the other side of the spectrum sits the monetary policy authority, which “justifiably” sees nothing but inflationary threats from both currency volatility and rising consumer goods prices and thus do not mind to trade-off interest rate for exchange rate and price stability.  Some schools of thought believe the government should borrow its way out of recession, particularly through foreign loans that can improve foreign currency liquidity in the system, however some think tanks believe that the debt service burden is becoming unsustainable; about a quarter of actual revenue being used to service debt.

Recently there were calls for the sale of some prolific public assets, with hope that the proceeds will bridge the demand/supply gaps in the FX market and strengthen the external and current account positions of Nigeria. Ab initio, the government has no business being in business; a complementary argument for the timeliness of the call. Interestingly, the “conservatives” have resisted that such sale of strategic public assets will only enrich a few capitalists and deny future generations of Nigerians their inheritance. Paradoxically, as the government seeks increased revenue generation, there are calls for tax incentives to compensate businesses and households for the burden of recession and incentivise new investments that can create jobs and expand income opportunities for the jobless tens of millions – a dilemma which the fiscal authority is perhaps yet to demystify. The priority of the displaced millions in the North East region of the country is food for survival; albeit the government is spending billions on war tools to clear the remnants of the insurgents. Fellow Nigerians in the oil rich Delta are advocating for increased government spending in the region but lower oil production (resulting from militancy events) has dampened fiscal revenue to historical lows; double whammy of low oil output and weak crude oil price. The IMF forecasts Nigeria’s economy will contract 1.7% this year and only recover 0.6% in 2017; however the Nigerian fiscal authority believes the economy is emerging from recession and should recover strongly on reforms in the year ahead. Where do we go from here?

Amidst the debate, one striking consensus is that Nigeria needs a “Big Push”. Just like the Big Push Theory of Rodan Rosenstein, only a comprehensive investment package can be helpful in taking Nigeria out of the current quagmire. By implication, a certain minimum amount of resources must be devoted for developmental programs, with focus on improving productivity. Whilst notable people in the fiscal corridor say Nigeria needs to spend its way out of recession, the spending must be towards improving production, particularly because of the complexity of the current state; a mix of recession and rising inflation – the stagflation phenomenon! Whilst it is imperative to be sensitive to the pains of the low and middle income class who are the most vulnerable in the current circumstance, it will be more damaging to spend our way out of recession by stimulating consumption without a supportive productive base. 

NIGERIA; IN SEARCH OF THE “BIG PUSH”

The big question is how will the government fund its spending appetite? Whilst the debt-to-GDP ratio remains well below 15% and ranks as one of the lowest in the world, the debt service burden has been quoted to better reflect the looming “fiscal cliff”. Thus, it may be imperative to consider further liberalization of the attractive sectors of the Nigerian economy with a mix of privatization of paradoxically “worthy but idle” assets. This may also take the form of front loaded sale of future crude oil or other resource outputs through “commercially guided” forward contracts, with immediate payments, even if such will have to be at justified discounted value. Interestingly, such initiatives should open up new opportunities, competition and job creation that could give room to the long overdue expansion of the tax net. This does not necessarily mean that Nigeria cannot borrow to fund development projects but increasing the debt profile in the current interest rate environment may have more worrisome implication for the country. An alternative to open market borrowing is to leverage on the Central Bank balance sheet through a transparent PPP-led infrastructure development programme that provides funding to the government at zero or subsidized rate.

More importantly, Nigeria must always understand that there is a trade-off for every action and inaction, and must always be prepared for the outcomes of every decision taken! Whilst there is no right or wrong approach to stimulating the economy, the costs and benefits of every decision is unique!
Share on Google Plus

About Lion King

12 comments:

  1. I think that this information will be useful for you. Especially if you are going to write your research paper soon

    ReplyDelete
  2. PLEASE READ!!Hello Guys! I am Ruth I live in Ohio USA I’m 37 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,500 daily. I got it from Him last week and now I have withdrawn about $15,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano’s email address is adrianohackers01@gmail.com

    ReplyDelete
  3. PLEASE READ!!Hello Guys!!! I am Caro I live in Ohio USA I’m 32 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,000 daily. I got it from Him last week and now I have withdrawn about $10,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano's email address is adrianohackers01@gmail.com

    ReplyDelete
  4. PLEASE READ!!Hello Guys!!! I am Caro I live in Ohio USA I’m 32 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,000 daily. I got it from Him last week and now I have withdrawn about $10,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano's email address is adrianohackers01@gmail.com

    ReplyDelete
  5. PLEASE READ!!Hello Guys!!! I am Caro I live in Ohio USA I’m 32 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,000 daily. I got it from Him last week and now I have withdrawn about $10,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano's email address is adrianohackers01@gmail.com

    ReplyDelete
  6. "DO YOU KNOW THAT YOU CAN HACK AN ATM MACHINE WITH  PROGRAMMED BLANK ATM CARD?? This card is an ATM cards that can be used to hack into any ATM machine. Withdraw as much cash as you want!! We sell this cards to buyers worldwide. We also make credit cards too! Here is our list for ATM cards:
    $10————-$10,000
    $10 ————$20,000
    $10 ————$30,000
    $10 ————$40,000

    Those cards are programed to withdraw for 3 months before you can renew it, if you want to get your own card Contact us on Email: adrianohackers01@gmail.com"

    ReplyDelete
  7. PLEASE READ!!Hello Guys!!! I am Ruth I live in Ohio USA I’m 32 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,000 daily. I got it from Him last week and now I have withdrawn about $10,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano's email address is adrianohackers01@gmail.com

    ReplyDelete
  8. PLEASE READ!!Hello Guys!!! I am Ruth I live in Ohio USA I’m 32 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,000 daily. I got it from Him last week and now I have withdrawn about $10,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano's email address is adrianohackers01@gmail.com

    ReplyDelete
  9. PLEASE READ!!Hello Guys!!! I am Ruth I live in Ohio USA I’m 32 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,000 daily. I got it from Him last week and now I have withdrawn about $10,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano's email address is adrianohackers01@gmail.com

    ReplyDelete
  10. PLEASE READ!!Hello Guys!!! I am Tracy I live in Florida USA I’m 35 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,000 daily. I got it from Him last week and now I have withdrawn about $10,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano's email address is adrianohackers01@gmail.com

    ReplyDelete
  11. I was searching for loan to sort out my bills & debts, then i saw comments about Blank ATM Card that can be hacked and withdraw money from any ATM machines around you anywhere in the world . I doubted thus but decided to give it a try by contacting united blank atm hack card they responded with their guidelines on how the card works. I was assured that the card can withdraw $5,000 instant per day & was credited with$50,000,000.00 so i requested for one & paid the delivery fee to obtain the card, after 24 hours later, i was shock to see the Courier agent in my resident with a parcel {card} i signed and went back inside and confirmed the card work's after the agent left. This is no doubts because i have the card & has made used of the card. Contact these email if you wants to get rich with this....Via email: unitedblankatmhackcard@gmail.com or whatsApp +44 7466 770724

    ReplyDelete
  12. Hello Guys!! I am Belinda I live in Chicago  USA I am very excited today and do not know where to start my testimony from. I was a poor woman with 3 kids and find it difficult to pay my bills and feed my kids.My husband left me and the kids for another woman and ever since then we were living in pain and hunger but just few days ago i came across a testimony of a man who got a Blank ATM Card from Mr.Alexander so i immediately contacted him for the same type of ATM card and i am very happy to announce to the world that i am living a fulfilled life. This Blank ATM Card can withdraw up to 10,000 dollars and more daily without you having any account with any Bank. I have been able to buy a house and start my own business with this Blank ATM Card. Are you poor and need help then contact him now. Mr.Alexander email address is alexanderhackers01@gmail.com

    ReplyDelete