The Chief Executive Officer of Financial Derivatives, Bismarck Rewane, has said that policy changes must be followed by institutional reforms to deliver tangible gains that will trickle down to the populace.
According to Rewane, there are time lags between policies and impact, thus, it is important to wait for the outcome of President Bola Tinubu’s administration’s economic reforms.
This was disclosed by Rewane in a recent presentation to business leaders at the Lagos Business School Breakfast Club, according to The Punch.
An excerpt from Rewane’s presentation read, “One year in office means 25 per cent of the life of an administration in its first term in Nigeria. The review of the one-year performance is a sober introspection on the measures of macroeconomic policy and the welfare of the people.
“The reality remains that there are lags between policies and impact, then impact and credibility. This is a year of this administration’s leadership, and policy changes must be followed by institutional reforms to deliver tangible gains that will trickle down to the populace.
“So far, there has been a shift of resources from people to the government. Now is the time for the government to manage the resources efficiently and ensure the investment multiplier effect is felt.”
Rewane noted that the recent back-and-forth movement of the naira in the foreign exchange market shows that the naira might not sustain a bull run of continuous gain without experiencing some volatility along the way.
He called on the Nigerians to accept the reality, noting that currency markets are volatile by nature.
“Yet, amidst these glimmers of hope, there remains an underlying sense of apprehension, a fear that these moments of semblance might merely be the calm before the storm. Nigerians’ emotional mood swings now depend on the direction the currency is going.
“Whether the Naira is catching its breath or gearing up for another tumble, one thing is sure: proactive measures and strategic planning are imperative to safeguard Nigeria’s financial future,” he said.
Meanwhile, the economist noted that the market has recently fallen significantly by six per cent.
According to him, the decline is a reflection of wider macroeconomic uncertainty and investor concerns about market performance in the years ahead.
Rewane wondered why despite steps taken to improve production, the country still grapples with the recent scarcity of fuel with long queues at filling stations across the nation.
“Out of the blue, petrol scarcity and queues appear from nowhere. This is after steps have been taken to improve production, including a reduction in subsidy, the opening of the Dangote refinery, and the modular refineries.
“After all that is done, there is no justification for petrol scarcity and price hikes. Then why the scarcity and queues? Is it a result of a structural problem, contrived, or a combination of both?” he queried.
