Economic and financial experts have called on the Federal Government to ensure steps are taken in avoiding a relapse into economic recession.
A former President, Association of National Accountants of Nigeria (ANAN), Dr Samuel Nzekwe, advised the Federal to Government to ensure alignment between the fiscal and monetary policies to attract foreign direct investment and portfolio investors.
Nzekwe gave the advice on Monday while reviewing the nation’s economy as the country celebrates its 58th independence anniversary.
He said this has become imperative, as the Central Bank of Nigeria (CBN) had warned that the country might go into recession, adding that foreign investors would only invest in the economy if the business environment was conducive.
The CBN governor, Mr Godwin Emefiele, revealed at the Monetary Policy Committee (MPC) meeting on Sept. 25, that the economy might return into recession.
Emefiele attributed this to the slow growth in the Gross Domestic Product (GDP).
An economy is said to be in recession after contracting for two consecutive quarters.
The economy slipped into recession in 2016.
It declined to 1.5 per cent in the second quarter of 2018 from 1.95 per cent in the first quarter of same year.
According to Nzekwe, the government also has to focus more on improving all the economic indices to attract foreign investors and boost public-private partnership arrangement.
He added that Nigerians need to be constantly reoriented to produce what they consume and discard preference for foreign goods.
“No country has ever created a great economy by depending on the industrial outputs of other nations.
“The task of rebuilding the economy is an assignment for all Nigerians,” he said.
He said recession leaves the country with no alternative than to come up with a comprehensive, inward-looking policies to boost production.
Nzekwe stressed that the government has to enhance individual liquidity by spending wisely on agriculture, infrastructure and stimulating the manufacturing sector.
On his part, a former Director, Department of Statistics at the CBN, Mr Titus Okurounmu, said both federal and state governments should borrow from the capital market to finance revenue-yielding capital projects
According to him, government is the key player to stop recession and to divert the economy to the path of growth.
He said the prime actions of government on ensuring that the nation’s economy does not go into recession should be focused on checking inflation and boosting per capita disposable income.
Okurounmu added that reducing per capita debt level, balancing interest rates and ensuring an atmosphere conducive for business activities are key to avoiding recession.