An economist, Prof. Akpan Hogan-Ekpo, has called on the Federal Government to implement the Economic Recovery and Growth Plan (ERGP) effectively.
Hogan-Ekpo, the Director General, West African Institute for Financial and Economic Management (WAIFEM) in Lagos, made the call while delivering a convocation lecture at Bayero University Kano on Friday.
The title of the lecture was “Nigerian Economy: Current Recession and Beyond.
He said the call was necessary to enable the economy to exit from the current recession.
“The government has launched the Economic Recovery and Growth Plan which if properly implemented will enable the economy to exit the current recession, while the growth component will ensure an average growth rate of 4.5 per cent from 2017 to 2020,” he said
According to him, there is urgent need for the Federal Government to adhere strictly to the plan if the economy is to get out of the recession.
He also stressed the need for government to invest in infrastructure, particularly in power, roads, railways and housing, among others.
“In a recession, recurrent expenditure, mostly personnel cost, will stimulate aggregate demand; sub-national governments owe salaries and allowances to workers, the sooner these workers are paid, the better for the economy”.
He further called on the government to provide more incentives to the small and medium enterprises such as tax cut and enhanced access to credit.
“In addition, there should be effective monitoring and macroeconomic management of the economy.
“By 2020, the economy is expected to grow by seven per cent. It must be stated that even if the economy exit the recession this year, the huge challenges of the economy will remain,” he said.
The economist said the current challenges included high and rising unemployment, particularly among youths, infrastructure deficits, lack of basic needs by millions of Nigerians, among others.
He, however, called on the government and other stakeholders to think beyond the current recession.
“Recessions come and go in all market dominated economies. It is a permanent feature. The reality is to properly manage an economy so as to minimise the adverse effects of a recession.”he said. (NAN).
MTM/TA