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Fix economy, don’t fight press- Prof Ndubuisi to Tinubu

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Fix economy, don't fight press- Prof Ndubuisi to Tinubu

Professor Ndubuisi Ekekwe, Chairman of Tekedia Capital, has advised President Tinubu to show results and stop fighting reports on the bad state of the economy.

 

Professor Ekekwe, a member of Abia Global Economic Advisory Council said contrary to defence from Bayo Onanuga on New York Times report on the state of economy of the country since Tinubu assumed office, the government should address economic policies that brought hardship on the citizens.

 

Ekekwe advised Tinubu to reverse naira float and restore fuel subsidy for industrial customers. He said, ‘We need to respond with a better outcome, and that means improving the state of the economy. That said, Nigeria can stop this bleeding tomorrow by announcing that the Naira is now pegged at N1,000/$1 and once that is done, you attain equilibrium making it possible for companies to operate. What we have now is too stochastic that no meaningful business modeling can happen, and that is why this bleeding is escalating.

 

READ ALSO: Blame Emefiele, Buhari for today’s hardship not Tinubu- Presidency

 

On why Tinubu should reverse the Naira floating policy, Ekekwe said the policy issue was volatility. He said with the current floating policy, investors cannot invest in the economy. “The biggest challenge today is not that the Naira is exchanging at N1,500 or N1,400 to US$1, the issue is that the volatility will make it impossible for companies to plan and investors to invest. The exchange rate stresses traders and speculators, but for investors, volatility kills their plans. So, pegging Naira will deal with that volatility immediately,” he said.

 

He said until industries make products, inflation may remain high. Ekekwe said energy cost was also responsible for the exit of industries in the country.

 

“Nigeria must bring full subsidy for industrial customers even as it allows commercial and residential to pay the full rates. Understand that if we do not deepen the industrial base, the vicious cycle will continue. So, to tame inflation and help companies make things, we need to assist them on energy costs which have gone up significantly. But do not give them money, use rebates so that only real industrial customers will benefit,” he advised.

 

Tinubu declared “subsidy is gone” during his inauguration speech. The statement led to increase in fuel pump price. Also, the federal government increased electricity tariff against organized labour and experts’ advice. For an economy that is mostly dependent on fuel due to epileptic electricity supply, companies had to rely majorly on fuel.