Economic experts in the country have said for Nigeria to tackle the issue of incessant borrowing, it needs to address the issue of insecurity and focus on non-oil revenue sources.
The experts who were reacting to Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun’s statement that the Federal Government was not in a position to borrow money at this time, said that the government cannot pursue other sources of generating revenue without addressing the issue of insecurity adding that Insecurity is a major obstacle to economic development in Nigeria.
According to the Minister, the emphasis will be on how to create a macroeconomic environment where both local and foreign investors would invest and increase production.
Reacting, Managing Director of Crane Securities Limited, Mr. Mike Eze, noted that there are other alternatives to borrowing that the government should focus on which include non-oil products such as agriculture, tourism, art, and culture creative arts, sports etc.
“Nigeria has several potential non-oil exports, such as agricultural products, solid minerals, and manufactured goods. The government can provide support to businesses that export these products.
Eze noted that before those areas could thrive, the government needs to take steps to improve security to create a more conducive environment for economic growth.
He also noted that insecurity discourages investment and makes it difficult for businesses to operate.
According to the former President and Chairman governing council of, the Chartered Institute of Stockbrokers (CIS) and the Managing Director, of Arthur Steven Asset Management Limited, Mr. Olatunde Amolegbe, steps taken by the government regarding the oil subsidy removal should support the Federal Government decision not to borrow.
He urged the government to increase the pace of privatization of government entities which has been relatively slowed.
“If the pace of privatization increases it will encourage both local and foreign investors to participate in the previous government-owned enterprises that are to be brought to the market. “That will open up investment opportunities for both local and foreign investors,” he said.
Also, the Executive Vice Chairman of Hicap Securities Limited, Mr. David Adonri said that what the minister has said is appropriate and is the right policy direction to follow especially when it is believed that the private sector is the engine room for the growth of the economy.
