Tola: Taxation is already digitised. It’s actually poor adoption that’s the issue. There is a FIRS working portal for this.
The Octagon: Can we share final thoughts on 1. key ways out then current state of things. 2. How the individual Nigerian can possibly cope/adjust till we are out of the woods.
Wilson: My advice for individuals:
- Cut unnecessary cost.
- Earn dollars by getting involved in producing and exporting goods and services.
- Be interested in open government and ask questions. We must continue in our efforts to hold government accountable. We need to have a responsible government.
- Offer advice to the government in your own little way. It is clear that the government needs help in terms of planning and setting the direction for the economy. The government also lacks the urgency needed to turn things around quickly but we must keep engaging them.
Tola: For me 6 things:
- Govt cant do any recovery alone. Private sector must support by deepening investments in real sectors particularly on infrastructure and manufacturing.
- Increased transparency in policy and communication.
- We need to invest in our nation. Increased spending on Nigerian manufactures, less unnecessary imports. Focus on importing component of local Manufacturing instead.
- Individuals should do a real time analysis of their cost of living, and do some substitutions, and get involved in value creation businesses.
- Keep hope alive. The Q3 figures shows that if we sustain our non oil sector focus and growth and diversification, we would soon quickly achieve measurable growth that impact on GDP growth.
- Entrepreneurship and enterprise. Not in short term quick gains, but serious value additions. Infact I think the motto should be, how can I provide a service that ensures no one has to spend FX to secure this same service.
- And businesses/ individuals should export export export.
Gbane: My Advice is as follows –
- Government hands off pricing in any way shape or form cant stress this enough (people will not produce if they know prices of their goods and services are predetermined its harmful in profound ways.
- Our forex regime – eliminate the distortions.
- CBN needs to be truly independent, it apparently is not.
- Infrastructural works on a national will provide jobs and stimulate the wider economy, it will also have the multiplier effect of reducing cost of transportion of goods and services. This will lead to higher consumption and a resultant increase in production and the virtuous cycle continues.
Thanks everyone is was great reading all the insight here…there is hope for Nigeria
Seun: We can only get out if we understand the vision to build an economy out of oil and also be efficient at all levels. CBN is currently printing money to fund FG and it is unsustainable.
Tola: key issue – I think diagnosing the Nigerian problem is rather straightforward in the sense that the economic failings are evident. My own real question is how does one balance the going forward – oil income is needed in short term to revitalise economy. If you had 3 key implementation frameworks for govt today – what would those be? Practical, no emotive statement.
- An additional FX buffer – There has to be a plan to bring FX (5-10bn USD). There is nothing emotional about it but we should go for an IMF loan. A better FX buffer helps our training outlook.
- Invest in value chain completion: Dangote will take us out of oil importation in 3 years but we need to complete our value chains in agriculture, small manufacturing and others. There has to be a plan to industrialize Nigeria.
- Build competitive states: a deliberate plan to build states that build economies outside oil. It might include taking out the FAAC incentive. We import fish feed, floor tiles, paper and simple things that investment in machinery can fix.
- Let me we add we need vertical accountability. Putting more money in states without accountability won’t work.
Wilson: Interesting points Seun. The composition of Nigeria’s agricultural sector is scary. Crop production accounted for about 90% of the sector’s output in Q3. We need to strengthen the other subsectors within the Agricultural sector as well as the value chain.
Tola: Totally. Totally. That’s my point. This is why private sector can invest in the long term with government full support. This is a major issue. Getting states to be responsible sub national entities with developmental agendas and not temporary spendings systems.
Thank you so much for the platform, and thanks everyone for your insightful conversations.Pages: 1 2 Tags: Buhari, CBN, Central Bank, Diversify, Economy, Finance, Foreign exchange, FX, GDP, government, investor, Kemi Adeosun, Lamido Sanusi, Minister, National Bureau of Statistics, nigeria, Oil, recession