Merit Ibe

“It is critical that as we come out of the global catastrophic impact of COVID -19 pandemic on the economies of the world, Nigerians in the country and in Diaspora need to invest in the country and the government has to restructure all sectors  for the economy to recover fast.”

This was the stance of Dr. Andrew Nevin, Partner, West Africa Financial Services Leader, who insisted that these two groups will help with there investments for quick recovery after the pandemic (post COVID). He added that Nigeria has to keep working on the ease of doing business and continue to  tell the Nigerian story.

Andrew, who is also the chief economist, Nigeria Clients and Markets Leader noted that if the country doesn’t get sufficient investments, coming out of this economic crisis might not be easy.

The economist,who is in support of the reliefs from the International Monetary Fund (IMF) and other bodies  to Nigeria, said the funds will only help the country through a few months, saying since the collapse of oil price, in the midst of the pandemic,  Nigeria is faced with real fiscal crisis,  and so has no choice than to accept the emergency supports.

He enthused that the reliefs were necessary because the price of oil, which currently represents over half of our fiscal proceed, was now less than the cost of production, adding that the  implication is that government won’t be getting revenue from oil anytime soon.

“So, we have to take money from any source and raise reasonable fund and make some returns to the immediate crisis we have.”

With the lockdown, Nevin said millions have lost their jobs so the impact of the pandemic on the economy was devastating, so, to save the day, he advised that government should endeavour that Nigerians have access to food, adding that the food supply chain has to continue to work and the second critical is access to money.  “Access to food and money are two critical things in the short term.”

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“We have said at the beginning of this crisis that government should make sure Nigerians have enough food to eat and access to resources. Most workers have lost employment. Nigerians need access to food since most workers have lost their employment. The  critical thing is that the food supply chain has to continue to work.”

In terms of restructuring, Nevin emphasised on the need for  government to exert  operation on every sector to hasten the  recovery process. “We have to really push forward.”

He  specifically noted that the refinery, airports, Ajaokuta Steel company were example of sectors where government needs to accelerate the concession process on public private partnership (PPP).

“I think some of the restructuring need will be that Nigeria should exert operation in running our companies; the refinery, airport, Ajaokuta steel are example where government needs to accelerate the concession process on PPP. In addition to that, every sector has a part in the recovery process, we have to really push forward.”

Critical areas for investment, according to Nevin included the real estate sector; mortgage system, power sector; agriculture supply chain; the Information Technology (IT) and others.

For investment to flow into these areas and for fast development, Nevin emphasised on easier conditions of doing business, and  investor-friendly environment to be in place, for people to invest.

While breaking down the importance of the  sectors to the fast growth of the economy, Nevin explained  that  since everyone needs a place to stay, the real estate sector, was important because it drives a lot of employment, and therefore needs a lot of changes; for the  mortgage system, he said it needs a lot of improvement;  for the power sector, a serious reform is important,noting that there should be decentralisation, where the state and regions can work on power;  agriculture supply chain, he admitted  draws a lot of people’s interest, and so needed investment not just in primary production of agric commodities but also in processing, like  tomatoes to pastes. The Information Technology (IT) he said is also a critical area to restructure for the future.