Nigeria: 'Things Will Get Worse in the Economy Before It Gets Better'

Chidi O. Ajaegbu last is president of the Institute of Chartered Accountants of Nigeria (ICAN). He is the Executive Director (CEO) of Heritage Capital Markets Ltd, a member of Coping Nigeria Stock Exchange (NSE). In this interview, take a critical look at the state of the economy in that the first verdict should put the worse for the country before there would be a 'turnaround f.

The economy is challenged on all fronts in Nigeria when and Central Bank Policies beaten yet rated stabilize para. What is your perspective on the situation and the various policy initiatives CBN?

I think the problem is much deeper than the various policies The Central Bank of Nigeria (CBN) has esta producing address the issue. I think its peripheral something political in nature; I think no child Sustainable Strategic.

Whenever we said that while there is s objective assessment are transparency regarding the Implementation of the Policy and its impact on people and not go one CAPABLE be really determine policy appropriate one our conditions, not only in this difficult time Economy paragraph ours, but ours when we raise.

Today we face our subsequent dramatic decline in prices in Crude Oil and because there is or governors have addressed the issue f of diversifying our economy and corruption that always seem to fall into a major crisis hay when volatility the crude oil market.

There is no doubt that things will get worse on the economy of the above improve. Massive job will be losses in all sectors, regardless of policy appears. The key, I think the government has the right is the recovery of funds and Stolen Focus on Effective Revenue.

Many countries in the world today in mainly dependent on taxes on the operation of the additional economies. But you see, we Nigerians, we have a way - Crude oil is the cheapest way. ALL THE any characters lazy to think and work and now there is crude oil. And finally, in the next 10 years 15, there will be alternative sources of energy to crude oil.

If we are really serious about prep Feasibility de este project called Nigeria, I think it's the right time if not the end, Parr The Government start a think seriously about how to diversify the economy in reality is that in 15 years or so is the crude oil is sold for $ 5 to $ 10 or there will be other sources of energy much cheaper and crude oil.

The only reason we still are talking about export of crude oil is now a queue because of the cost of crude oil per barrel is less than the cost of shale gas and oil production in the United States because these things discovered fuerón large amounts of crude US oil now sells for maybe 50 $ - 55 $, Our ability to export crude oil or refined products is drastically reduced DUE has the gas of Competition shale and oil will be completely beyond US.

CBN has always maintained official The value of naira despite calls devaluation of the local currency. Do you think it is appropriate for the To Do CBN given pressure sober Currency?

My opinion is that the CBN policy is unsustainable; If is a direct foreign investment in this awful country. Actually, it is a policy that should be immediately reviewed. The President should be informed of the SE does not comply with orders scammers. Finally devalue Hay Que. We can not be selling illusions Dollars N199 $ 1 when the market rate is N373 $ 1 you know that unsustainable hay; It is unrealistic.

The international community knows that the right rate. I'm not saying you should completely deregulate the currency but needs to be done to achieve v SAID that tries to market dynamics. But somewhere to sit say there will be a seller when the market is given N199 N373 ridiculous and unsustainable.

You are an important player in the capital market. How has policy will affect the market?

Because a queue capital market largely consists of foreign investors coming to the market. So you have bid more than the majority of the populations there has continued GLUT on the market.

Of course, this is basic economics; When you have Oversupply is sober order, The Caera Price. This is what we live there ABLE get a good value for money you will not be able to get because they are not going to go through the Black Market.

So we have to devalue the aim to encourage foreign investors to enter not only in the Chinese capital market Also in other aspects of Nigerian economy.

Say no when the currency devaluation Questions really the true value of the coin percent from a more than 50 from the place of USING Carry out Transactions is a simply ridiculous; It makes no sense that No. And finally, how about the price of oil if devalue continues to fall.

When our foreign reserves just under $ 20 million, Mil, El País start looking measures to address realistic devaluation of naira question f. As it is now, just a Dream world are in: mass change terms we use to transact business vis-à-vis the dollar.