Analysts salute CBN’s decision on foreign capital inflows

Mr Ike Chioke, Managing Director, Afrinvest West Africa Limited, has commended the Central Bank of Nigeria (CBN) in taking a tough policy decisions to restore confidence and make the economy attractive for foreign capital inflows.

Chioke, while speaking at the official lunch of the ‘Nigerian Banking Sector Report’ by Afrinvest limited in Lagos, noted that the introduction of a flexible foreign exchange policy which resulted in a circa 37.0 per cent depreciation of the naira at the interbank as well as the hike in Monetary Policy Rate (MPR) to 14.0 per cent were some of the positive steps that have been taken by the apex bank.

He explained that the lower foreign exchange receipts have weakened the country’s external reserves and ultimately deflated the CBN’s politically inspired defence of the local currency. He added that most macroeconomic indicators have deteriorated as the economy grapples with a recession amid galloping inflation and rising unemployment.

He, however, believed that the country is heading into the right direction with the decision of groups of experts and economists within the apex bank.

According to him,:“We are hoping that policy makers will begin to engage economists and the private sector, and also hoping that Nigerians will begin to speak up as everyone is just on ideas that we think is needed to be given a chance to be implemented because we are in a crisis of economist.”

Similarly, The Emir of Kano and immediate past Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi  Lamido Sanusi, also aligned himself with decision of the Monetary Policy Committee (MPC) of the CBN  to retained the MPR and other macroeconomic indicators unchanged.

The Emir who was also the royal father of the day at the event said that in the last two weeks the nation’s economy has been the major topic for discussions.

He said rather than spending energy launching on social programmes, the government urgently needs to commission a team of experts to layout a comprehensive economic blueprint for Nigeria within weeks.

Meanwhile, First Bank Limited Chairman, Mrs Ibukun Awosika, said less emphasis needed to be placed on import substitution as a strategy but propping non-oil export industries via promotional campaigns and infrastructure support programmes.

According to her, “The need to improve infrastructure stock of the country was captured in the 2016 budget with more allocations going to capital projects. Yet, we think infrastructure spending needs to be more strategic with an overarching focus to promote agriculture, industry and services.”

‘Perhaps, a plan stating the economic vision of the administration and the action plans to ease the difficult conditions of doing business in Nigeria will better communicate government’s strategy’ she added..

She, therefore, mentioned that the government should embark on a comprehensive re-organization of the agricultural industry, increase investment in processing and storage plants and also drive expansion in exports in a bid to expand source of foreign exchange earnings.