Nigeria policymakers should focus more on achieving macroeconomic stability this year in order to attain the desirable economic recovery and growth, according to Doyin Salami, chairman of the presidential economic advisory council.
Salami spoke at the virtual Economic outlook forum organized by the Chartered Institute of Bankers of Nigeria (CIBN) on Tuesday.
The presidential advisor said the nation’s economy requires massive investment to achieve its potential but might not be able to achieve that “if we are not able to achieve macroeconomic stability.”
He said the monetary authority must address the gap between inflation and interest rate in a bid to attract capital flow and the right investment in the economy.
He said the gap between the current inflation rate and yields on fixed assets are way too wide to attract any meaningful capital flow into the country and encourage investment.
Salami also counsels the monetary authority to adopt an exchange rate policy that will allow the economy to grow, noting that the focus should not be on the devaluation of the local currency as it is being done now.
The government, he said should ensure confidence in the economy by players in the sense that the determinant of the exchange rate should be known and understood by many people.
“If people understand and know how the exchange is being determined, and they are able to know the policy direction, they would be able to plan,” Salami said.
On his part, Abiodun Adedipe said the country is on the path of recovery this year from the available indices and based on the emerging PMI data.
He, however, said that what is important is the level of growth that Nigeria could achieve this year.
Adedipe projected economic growth of around 2.74 percent this year, but seek pragmatic change in the nexus between the country’s import bill and export.
According to him, the country has begun to import more than it export and that is a big risk for the economy which should be addressed.