… say ‘shoddy deployment may harm economy further’
‘Stakeholders must not politicise CBN’s affairs
Economists and financial experts have expressed worry over the ability of the Federal Government to put the N2.3tn stimulus plan, recently approved by the Federal Executive Council, to judicious use.
According to the experts, it is not enough to roll out the stimulus figures on newspapers; the Federal Government must also ensure that the funds allocated under the plan get to the critical sectors of the economy for a post COVID-19 recovery.
The stimulus plan was part of the recommendations contained in the Economic Sustainability Plan, submitted to President Muhammadu Buhari by the Vice President Osinbajo-led committee.
The experts, who spoke in separate interviews with our correspondent, noted that the current attempt to discredit the Central Bank of Nigeria in the midst of a leadership crisis in the ruling All Progressives Congress, could affect efficiency in the use of allocations under the stimulus plan.
Once the autonomy of the apex bank is threatened, rational decisions are also threatened, they said.
The Managing Director of EarnRight Associates, Dr. Mercy Ibifunto, said other countries of the world had rolled out such stimulus plans because that was the way to go, but pointed out that in the case of Nigeria, owing to past experiences, there was a need to institute informed monitoring groups to ensure the success of the plan with regard to funds.
She said, “It is in order to put such plans in place. But we must be careful not to damage the economy even further through misappropriation of funds allocated. There is so much politicking now that may prevent the right decisions from being taken.
“For instance, there are various reports being planted in the media against the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele. And you can see through those reports and responses that there are underlying political implications. Once the CBN’s autonomy is threatened, the ability to take the right macroeconomic decisions is also threatened.”
An economist, Dr. Ebere Ugochukwu, said there could be a downside to the continuous borrowing by the Federal Government, and continuous injection of money without proper implementation plans.
According to her, it is in order to inject money into the economy, but not properly accounting for allocation of resources and shoddy deployments could be more detrimental to the economy than envisaged.
She said, “I have not seen the signs that this government has a grip on sound economic management. Many decisions appear to be politically motivated. We need sound technocrats to monitor implementation and ensure that the stimulus plan actually helps to revive the Nigerian economy.
“However, what we are seeing is not pointing in that direction. Even when the Civil Society has cried out over the previous loans or grants, no one is saying anything. I think it is high time we held our government accountable and stressed that it cannot always be business as usual.”
On his part, a stockbroker, Mr. Ropo Dada, said the stimulus was a welcome idea because it would impact positively on the Nigerian capital market.
“It is savings that normally gives birth to investments. Buying shares or any other stock market instruments is pure investment. For example, with stimulus, companies that have stopped paying their workers will start paying etc. It is a welcome idea,” he said.
