BUSINESS How not to return to recession – Experts Debt office commences … mixed reactions trail exit roadshow on N100bn Sukuk
For government to ensure that Nigeria does not relapse into recession, it must come up with palliatives that will boost local manufacturing and ensure that banks support small holder farmers and industries, experts have advised.
Speaking yesterday in Abuja while announcing the 2017 annual conference on Small and Medium Enterprises (SMEs) development, the National President of the Association of Business Development Professionals in Nigeria (ABDPIN), Franklin Akinyosoye, said deliberate government policies, such as denial of foreign exchange for importation of toothpicks aided the emergence of the country out of recession.
The second quarter Gross Domestic Product report released by the National Bureau of Statistics on Tuesday indicated that the economy grew by 0.55 per cent (year-on-year) in real terms, signifying the emergence of the economy from recession after five consecutive quarters of contraction since the first quarter of 2016.
“We’re seeing results of encouragements from the government and that is why the GDP is rising,” he said.
He said the supports that SMEs will get from the government would determine their growth and eventual contribution to the overall GDP.
The President, Manufacturing Association of Nigeria (MAN), Frank Udemba Jacobs, said inasmuch as the positive growth rate is blowing favourable air, government needs not rest on its oars by further deploying strategic synthesis of fiscal and monetary policies.
He said government should further make the operating environment friendlier, enhance the purchasing power of average Nigerians, support the manufacturing, agriculture, telecom and oil sectors with comprehensive and integrated systems that would guarantee meaningful growth.
According to the industrialist, the manufacturing sector at the moment still requires stable and adequate enabling environment; a reliable policy support systems that would effectively address existing familiar challenges like inadequate power and dearth of basic infrastructure prevalent in the sector.
Jacobs said the provision of infrastructure and implementation of the recommendations would sufficiently guarantee sustainability and inclusiveness of the current recovery tempo in the best interest of the sector and the economy as a whole.
He suggested that government should sustain the commitment to backward integration agenda especially in agriculture, solid mineral and petro-chemical sectors by creating enabling environment such as incentives, concessions for investors in the sectors; enforcing and monitoring the implementation of the recent Executive Order by the Federal Government on patronage of made in Nigeria goods.
He said Ministries, Department and Agencies (MDAs) of government should apply the recently approved 40 percent Margin of Preference by MDAs in their procurement decisions which include encouraging the state and local governments to embrace patronage of made in Nigeria products by following the footsteps of the Federal Government; sustain, monitor and enforce the Executive order on Micro, Small and Medium Enterprises’ consideration in procurement decisions by MDAs.
Jacobs also urged for urgent implementation of the Economic Recovery and Growth Plan in such a way that the huge fund budgeted is utilized in a manner that will have trickledown effect on employment, skills development and wealth creation.
Meanwhile, reacting on the recession exit Senator Shehu Sani said those who felt it when they were in recession should also feel it when they are out of it.
Sani, who tweeted yesterday in his handle, said there are three ways to get out of recession. By figures, by facts and by facts and figures.
However, the President of Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, commended the Federal Government on the recovery of the economy.
Gwadabe told the News Agency of Nigeria (NAN) in Lagos that exiting recession was as a result of the government’s effective management of fiscal and monetary policies as witnessed lately.
He said the anticipation of a bumper harvest in the agricultural sector would further reduce the country’s inflation rate.
In his reaction, Minister of Budget and National Planning, Udo Udoma, said the recovery of the Nigerian economy from recession is an indication that the government’s various policies under the Economic Recovery and Growth Plan (ERGP) were yielding fruits.
Udoma said the exit from recession is a confirmation that confidence was returning to the country’s economy. FLIGHT
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