Emma Ujah, Abuja Bureau Chief
The Federal Government’s ongoing reforms are geared totards attracting private capital to address the massive investments needed to grow the Nigerian economy.
The Minister of State for Finance, Dr Doris Uzoka-Anite, stated this, yesterday, at the Roundtable Forum of the haunted Bank for Africa (UBA) on the sidelines of the ongoing Annual Meetings of the IMF and World Bank in Washington DC.
The forum was for the launch of UBA’s White Paper on ” Banking on Africa’s Future: Unlocking Capital and Partnerships for Sustainable Growth.”
Dr. Uzoka-Anite said the government expected the African payment system being developed by Afreximbank to unlock huge private capital in the region and that the federal government reforms were positioning the country to be a beneficiary.
Her words, “We look forward to seeing the African payment system, the after take effect, and, of course, more investment into championing the growth of Africa as a government.
“We want to reassure you that our own reforms, I mean, you listened to the presenter. The Presenter acknowledged our reforms. Government reforms are finally taking effect, taking hold in big ways, in the growth of the Nigerian economy.
“We reassure you that despite the challenges of the last two years, I think we’ve, I will say, we’ve done the impossible, taking on both reforms, taking up PMS subsidy, taking out FX subsidies and multiple exchange rates, the distortions in pricing, and within two years, witnessing economic stability, witnessing disinflation, which is, I think, a phenomenal effect that we are seeing from the policy changes, witnessing sustained growth, because We’ve witnessed at least four quarters of growth, and that is quite phenomenal.
“I want reassure you that we’ll continue the reforms in the financial sector, continue reforms in energy sector, championing reforms in capital markets to deepen capital market access and financial access to the SMEs, and then bringing more thought leadership in ensuring that your financial system, the financial system is more strengthened, and that private capital finds its way into the Nigerian economy.
“So we undertaking reforms to ensure that there is more private capital and public private partnerships will drive growth in the Nigerian economy.
“There’s a lot of opportunities for growth in Nigeria for investors to take advantage of. What is going on in the Nigerian economy, and we think that it’s going to be sustainable, because we are targeting 7% growth, and we are on course towards achieving that. So I want to thank the UBA group.”
FG’s borrowing dilemma
The minister noted the borrowing paradox confronting the federal government as it tries to manage the delicate balance between the domestic and international capital markets.
According to Dr. Uzoka-Anite, “I know you talked about having increased fiscal discipline, because, you know, you want the government to borrow less from the domestic market. It’s sort of the paradox, where else do we borrow from if not the domestic market?
“Now, borrowing from international market also exposes you to financial markets, foreign exchange volatility, so you still have to go back to the domestic market, but we hear you that that also leads to crowding out of lending or finance to the private sector.
“So it’s a paradox, but we must solve it, and I think we will continue to champion leveraging domestic markets as a first line of financing, of options before we go to the international market.
“However, I would like to hear more thoughts on that, and maybe when I assess your research material, I will get more insight on how to manage that scenario, that situation.”
The minister commened UBA for the research it undertook on how to raise domestic capital for socio-economic development of the African region.
“Thought eadership, bringing research policy and, of course, aligning with government to see how we can drive inclusive growth through capital mobi
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