The Nigerian Economic Summit Group (NESG) has expressed concerns over the foreign exchange transactions and disbursement of intervention loans by the Central Bank of Nigeria as well as rising poverty and unemployment in the country.
The NESG said the high level of insecurity across the country had contributed massively to the current food crisis, unemployment, poverty, increasing community clashes, rising bloodshed and the absence of peace and tranquility in the land.
The private sector-led think-tank, in a statement on Tuesday entitled ‘Matters of urgent attention’, noted that since the inception of the current administration, agriculture and the need to ensure zero hunger for Nigerians had received considerable attention.
It, however, said despite the budgetary allocations and huge sums of money disbursed by the CBN through the Anchor Borrowers’ Programme, a huge gap remained in meeting the food requirements, resulting in increasing hunger among the Nigerian populace.
“Evidently, the issues are beyond money and, therefore, require a complete overhaul of the management of, and support for the agriculture sector and all related sectors – with a view to getting more value for our investments,” the group added.
The NESG noted the evolving developmental roles of central banks around the world, especially regarding resource allocations.
It, however, said such allocative roles must be undertaken in a very open, transparent and fair manner.
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The statement said, “The group expresses serious concerns about how the Central Bank of Nigeria has carried on the business of foreign exchange transactions, loan disbursements (intervention funds) and price fixings without appropriate policy clarity.
“This can be subject to abuses, manipulations and significant market disruptions, reflective of a policy akin to crony capitalism.
“We therefore respectfully request the appropriate authorities to properly review this policy to restore credibility into our financial sector.”
The group said it had expressed severe concerns about certain provisions of the “repealed and re-enacted” Bank and Other Financial Institutions Act 2020 recently passed by both the National Assembly, and in the process of being transmitted to the President for assent.
According to the statement, the bill contains certain provisions that breach the provisions of the Nigerian constitution, confers immunity on CBN officials and exempts actions by the CBN from judicial review.
It said, “These are draconian, totalitarian and inimical to the development of a stable and transparently regulated financial sector.
“We respectfully request that the President should please withhold his assent until the bill is properly reviewed, amended and is made fit for purpose.”
The NESG said it observed with concern some distortions in the liquidity and interest rate management of the nation’s financial system “which has resulted in rate distortions, causing grave disadvantage to domestic investors and pensioners.”
Describing the development as a disadvantage to Nigerian pensioners and long-term savers, it said, “This is inimical to this administration’s concern for the elderly, the weak, the infirmed and those who had served this country meritoriously in their prime.
“It must be stressed that our country needs to mobilise domestic savings and investments even as we seek to attract foreign investment and we should be careful not to initiate policies that appear to discriminate against or discourage domestic savings and investors.”
The group said policies making average Nigerians poorer by the day should not be encouraged.
It urged the Federal Government to expedite actions at re-opening the nation’s closed borders, given its negative impact on trade and employment.
The NESG said, “We also call on the government to ratify the African Continental Free Trade Agreement so that we can move to full membership status and take our rightful place in subsequent negotiation rounds.
“The NESG notes with grave concern the rising level of poverty, unemployment and underemployment in our country which is predominant among our young people and has been exacerbated by the impact of COVID-19 and the slump in commodity prices.”
The group said while efforts at creating short-term jobs across the country were commendable, a lot more effort must be channeled towards re-skilling, retooling and reviewing the nation’s school curriculum.