A leading economist and financial derivatives analyst, Bismarck Rewane, has predicted that Nigeria will start to experience a ‘slow’ but ‘painful’ recovery process from the current economic recession rocking the nation in July 2017.
He disclosed this while addressing the media on the state of Nigeria’s economy.
Rewane noted that the government’s quest to increase the sources of revenue, increase the tax net, block leakages, and emphasize spending on capital projects will have a multiplier effect and have a trigger point on the growth the economy, which is a surefire approach to take any country out of recession.
He said that the results from those various interventions the federal government has put in place to exit the nation out of recession will become ‘visible’ as from the third quarter of 2017.
The economist said the value of the Naira is in a better position today than it was a few days ago having gained almost two or three percent, because there is a move in the right direction made by the Central Bank’s determined effort to reform the foreign exchange market which was in shambles before now.
He encouraged Nigerians, as a people affected by the economic quagmire rocking the nation, to increase their productivity and go from protecting their businesses from competition to actual competing so that Nigeria can be competitive both domestically and internationally.
Rewane said: “Nigeria will start a slow but painful recovery process in the third quarter of 2017. This point in time, Nigeria is spending 34 Kobo on every Naira to pay interest on debt. This interest is being used to pay Treasury Bills, to fund a borrowing programme which is not sustainable mainly for consumption.
