By Deborah Mustapha
On a quick note, The National Leader of All Progressive Congress, APC, Senator Bola Tinubu, has advocated a virtual zero interest rate policy to assist large businesses maintain operations and their payrolls as the Central Bank of Nigeria (CBN) can give conditional interest-free loans in this era of Covid-19 lockdown.
The APC National leader disclosed these statements recently on his Twitter page tagged the operation ‘Corona Virus Economic Stimulus Program’.
Tinubu further advocated that the global economy has turned against us as oil prices have steeply fallen, however, the price may rebound but not nearly enough to return to customary levels. The resultant revenue loss impairs the naira exchange rate.
“In general, the price of imports per unit has become dearer. Thus, the wise policy suggests limiting our imports during this emergency to save hard currency and protect the exchange rate.
“Nevertheless, Nigeria’s private-sector economy can be divided into Agriculture, Service and Industry. Each sector has been affected by this crisis but with different degrees of severity and, in some instances, in entirely different ways”. He lamented.
Asiwaju Tinubu as popularly called, stressed that the CBN can lend large amounts of virtually non-interest loans to these firms with the provision that the companies maintain their existing payrolls.
“If we must hold to the restrictive public health measures, the people will need economic relief as the money-less family still needs food, water, shelter and, to a lesser degree, utilities. If not, these families risk hunger and its attendant suffering and woes.
“Relatively, Tinubu said activating Trader-Moni and other programs will help many small-scale traders”, he added.
In his policy recommendations, he made mention that recessionary forces outweigh inflationary ones at this time as the Agriculture service and manufacturing sectors have been weakened and urban employment has severely been battered.
“The economy will suffer palpable contraction unless the government enacts countervailing measures.
“However, the best step would be to suspend the 5 per cent budgetary limit for this fiscal year as alternatively, the limit should be raised to 25-30 per cent to give the federal government more room to make the minimum expenditures necessary to save the economy and the people”, Asiwaju Tinubu submitted.
Reactions obtained by Daily News Nigeria could be said that many Nigerians welcomed the intervention as a serious economist should further the suggestions in a matured way.
The commentators, however, praised Tinubu as indeed the genius he was called.
“Policy translation and physical implementation are part of the challenges facing Nigeria. Nigeria needs individuals with the built capacity to deliver”. they added.