The Nigerian Economists Society has warned that the country is about sliding into recession, saying that the flexible foreign exchange policy adopted by the Central Bank of Nigeria could not survive in a non-productive economy.
It stated that Nigeria’s economy was fragile and about to enter into recession because it was characterised by high import-dependency, drastic decline in foreign exchange and double-digit inflation.
The economists, at a one-day symposium coordinated by Prof. Akpan Ekpo of the University of Uyo, on the theme: ‘Managing the naira’, added that other variables signalling recession were mass poverty, infrastructural collapse, endemic corruption and growing insecurity in the country.
A communiqué issued at the end of the symposium and made available to our correspondent on Sunday, stated that the problem was compounded by a poor local production structure and high-level consumption of foreign goods and services.
According to the communiqué, given the structure of the Nigerian economy, the current foreign exchange policy is not a viable option as it suits an industrialised economy.
It stated, “The new foreign exchange policy, which implies that the exchange rate will be determined by market forces (clean float) is faulted as it admonishes a spot and forwards, assumes the economy is sophisticated and productive in producing needed goods and services typically of the advanced economies.”