From Oluseye Ojo, Ibadan
In a bid to hasten Nigeria’s recovery from recession, President Muhammadu Buhari has been enjoined to urgently inject recovered looted funds into the economy.
The advice was given by economists at the University of Ibadan during a forum organised by the Department of Economics of the institution, entitled: ‘The Economic Recession,’ held at the Trenchard Hallike at the weekend. The forum, which was led by under Professor Kassey Garba, was moderated by Emeritus Professor Ademola Oyejide.
Speakers at the forum included Director of Centre for Sustainable Development, UI, Prof Lanre Olaniyan; immediate past president of Nigeria Economic Society, Prof Olu Ajakaye; Prof Abdulganiyu Garba and Dr. Olatunji Sobodu.
According to them, the looted funds in private homes make the economy sick rather than ensuring circular flow of income, blaming the Federal Government for lacking cohesive social policy system that will make it articulate policies that can take care of the common good.
Olaniyan noted that looted money in private homes compound the problem of recession, adding that only money flowing and exchanging hands can lubricate the economy and help the country bounce back.
“You can’t escape recession when monies that are supposed to be in the economy are locked up for years in private homes. If the money had been in banks, it will be invested in businesses, people will have money to borrow and do business and pay for sustenance.
“Money is like a river which must flow. When it is stopped, it stinks and that is what we are experiencing in recession,” Olaniyan said.
Ajakaye, in his own presentation, called on the Federal Government to evolve a policy that would enhance the capacity of Nigeria and Nigerians to produce what we consume and capture the market in Africa and compete in the world.
On his part, Garba noted that Nigeria malfunctions because the leadership is influenced by the rich and only formulates policies that meet the needs of the powerful few as against the common good, adding that psychological uncertainties make the rich want to amass more wealth legally or illegally.
He queried the proliferation of over 3,000 Bureau De Change agents, whom he said, tinker with the value of dollar and interest rates with grievous implication on the economy.
His words: “We expend all energies on attracting foreign investment and part of the crisis is the imbalance between the interest of the foreign investors and domestic investors.
“Unfortunately, we have chosen the interests of foreign investors ahead of the interest of local investors.
“These foreign investors are more interested in high interest rates, domestic investors are interested in lower interest rate but to attract foreign investors, interest rates must go up.
“Those imbalances have implications for the economy.
“You are setting the country for financial system instability in the future.”
Garba advised that Nigeria should spend on manufacturing and agricultural sector, which has high growth and employment opportunities, noting that while the rich smile during recession because they have access to resources, the majority of the masses who do not have access to resources suffer severely.