A former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has advised Nigeria to begin an extensive restructuring and repositioning
, Kingsley Moghalu, has advised Nigeria to begin an extensive restructuring and repositioning of its economy.
“I make this suggestion based on my strong view that our 100 million countrymen and women who live in extreme poverty, giving us the title of “poverty capital of the world” are not poor because we lack intelligent economists. “We need more than $7 billion to solve the balance of payments challenge, but that is not the point. If, as is likely, oil prices remain low for some time, this is just bandaid”.
“While we are told that our ratio of debt to our GDP is a moderate 21 per cent, the more relevant ratio is that of revenue to debt servicing which is in the region of 60 per cent or more. This means simply, that nearly two-thirds of our country’s revenues go to debt servicing. Nigeria is entering a dangerously vicious cycle.
He advised that the federal government deploys at least $500 million of the RFI from the IMF to the establishment of a venture capital fund to provide equity capital to unemployed youth, urban slum and rural unemployed citizens to start new, small and micro-business ventures. “It is clear, from experience with the Covid-19 palliatives debacle, that the Nigerian authorities lack the infrastructure and capacity to run an efficient and effective country-wide program of such magnitude and potential impact.
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