Bismarck Rewane, the CEO of Financial Derivatives, mentioned that policy changes take time to have an effect and it's important to wait for the outcome of President Bola Tinubu’s economic reforms.
During a recent presentation to business leaders at the Lagos Business School Breakfast Club, the economist expressed this view.
He emphasized the need for institutional reforms to follow policy changes in order to benefit the people.
In his presentation, Rewane pointed out that one year in office accounts for 25 per cent of the first term of an administration in Nigeria. This calls for a critical review of the administration's macroeconomic policies.
He highlighted the time lag between policies and their impact on the economy, stressing the importance of institutional reforms to bring tangible benefits to the people.
Rewane stated that there has been a shift of resources from people to the government, and it's crucial for the government to manage these resources effectively to ensure a positive investment multiplier effect.
Regarding foreign exchange, Rewane observed that the recent fluctuations in the naira suggest that sustained gains may not happen without experiencing some volatility along the way.
He advised Nigerians to acknowledge the volatility of currency markets and realize that it's not a one-way street.
He expressed concern about the emotional swings of Nigerians based on the direction of the currency, emphasizing the need for proactive measures and strategic planning to safeguard Nigeria’s financial future.
He emphasized the need for proactive measures and strategic planning to safeguard Nigeria’s financial future, regardless of the direction the Naira takes.
Rewane highlighted a significant decline in the stock market, with a loss of six per cent from its recent peak.
According to him, this decline reflects broader economic uncertainties and investor concerns about future market performance.
He also mentioned projections indicating a potential additional five per cent loss in the near term.
The economist raised questions about the recent fuel scarcity despite efforts to improve production.
He questioned the sudden appearance of fuel scarcity and queues despite efforts to improve production, reduction in subsidy, the opening of the Dangote refinery, and the modular refineries.
He wondered whether the fuel scarcity and queues were due to a structural problem, a contrived issue, or a combination of both after all the measures taken to improve production.
