The Special Adviser to the President on Economic Affairs, Dr. Tope Kolade Fasua, has stated that the 40% food inflation rate in the country must come down immediately, to avoid severe national food crisis.
He gave this warning as a Keynote Speaker, at the sixth annual National Budget Roundtable and Panel Discussion of Covenant University’s Centre for Economic Policy and Development Research (CEPDER), with the theme, "Exchange Rate Management and National Budgeting for Sustainable Development in Nigeria," which brought together experts, to address the challenges and opportunities of managing Nigeria's budget amidst volatile foreign exchange rates.
Dr. Fasua, who has an extensive background in finance and economics, including his leadership at Global Analytics Consulting Limited, provided valuable insights into the intricate relationship between exchange rate policies and national budgeting. He discussed in detail, the imperative of managing foreign exchange to support economic growth, and the importance of creating a resilient and inclusive economy.
In his opening remarks, the Vice-Chancellor of Covenant University, Professor Abiodun H. Adebayo, started that foreign exchange management is fundamental to any country's economic growth and sustainable development. He emphasized the significant impact of recent economic policies, such as the removal of fuel subsidies and the unification of the exchange rate market, on the nation’s economy.
“The liberalization of the naira has led to a 300% depreciation against the US dollar, while fuel prices have surged by over 500%, exacerbating inflation and operational costs for businesses,” he stated
Earlier in his welcome remarks, Dr. Obindah Gershon, the Chair of CEPDER, opened the discussion by highlighting the importance of the national budget in shaping economic policies and promoting sustainable development. He noted the critical need to address the reason why the national budget often fails to meet its objectives due to fluctuating exchange rates.
The Panel Discussion, moderated by an Alumnus of the University, Busola Jeje, featured distinguished experts, including Dr. Sola Oni, Dean of the School of Management and Social Sciences at Pan-Atlantic University, and Mr. Nnamdi Nwizu, Co-Managing Partner/Founder at Comercio Partners. The discussions focused on solutions to enhance the effectiveness of Nigeria's budgeting process and mitigate the impact of exchange rate shocks.
Dr. Oni, highlighted the need for innovative policy frameworks to support small and medium-sized enterprises (SMEs), while Nwizu stressed the importance of strategic investment management to navigate the complexities of the financial markets.
The event underscored CEPDER’s commitment to linking research with government policy and industry practice to achieve the Sustainable Development Goals in Africa. CEPDER has established seventeen sub-clusters to drive its vision, collaborating with partners like Warwick University, KPMG, and the Africa Capacity Building Fund.
The roundtable concluded with a call for the government to urgently review its economic policies to alleviate the hardship faced by Nigerians and to ensure that the national budget is robust enough to withstand future economic challenges.
