ABCON seeks reforms to curb govt spending, public debt

THE Association of Bureaux De Change Operators of Nigeria ( ABCON) has advocated reforms that will reduce government spending and also curb the rising national public debt.

The Association also reiterated its commitment to enhancing the capacity of BDC operators through the ongoing nationwide training of operators on their operations, adding that this will boost government efforts to achieve a stable exchange rate.

ABCON made this call in its Quarterly Economic Review for the second quarter of the year ( Q2’ 21), noting that the vulnerabilities identified with the rising debt profile expose the country to the risk of future high economic and development costs of having to deal with large debt overhangs.

Stressing the need for caution in decision making in government circles, ABCON said: “The fact that remarkable economic recovery is not certain and the rather unstable state of financial markets are indicating that the country could be on the verge of a major debt crisis.”

In its recommendations on how to tackle the rising profile of the nation’s public debt, the Association said:

“There is, therefore, a serious need for the introduction of fiscal reforms that would scale down government spending and to consider restructuring the loan profile and especially properly examine the conditions tied to Chinese denominated debts.

“We recommended a season of economic austerity to replace the increased debt pile up for the coming generation. Moderation of governance and other administrative costs along with blocking loopholes/ leakages from inflated contracts will more than satisfy the need for increased debts.”

ABCON also called for realistic measures to redress the ever- existing and increasing margin between the official and parallel market exchange rates.

According to the Association, “It is ambiguous to conclude that because the volume of transactions that pass through the official market is larger than the parallel and thus it is rational to adopt the exchange rate from the official sources as the realistic rate. The obvious mobility of funds between the markets actually voids this proposition.

Merrica Heaton, Deputy Political & Economic Chief, United States Consulate, Lagos, Nigeria, Abdulrazaq Isa( left); Chairman, Waltersmith Group, David Russell, Commercial Attaché, United States Consulate, Lagos, Nigeria, Jennifer Woods, Commercial Counselor, United States Consulate, Lagos, Nigeria during the courtesy visit of the representatives of the United States Consulate General to the Waltersmith office in Ikoyi, Lagos.