By Peter Egwuatu
To take Nigeria out of recession the Federal Government has been called upon to take pragmatic measures with regard to legal regulatory and institutional reform as well as look for alternative sources of revenue generation to boost the economy.
Dr Olisa Agbakobo stated this at a Finance Correspondents Association of Nigeria, FICAN forum held in Lagos at the weekend, stressing the need for government to set up new regulatory agencies that would supervise banks’ lending and its ethics.
He said: “There is need for massive legal regulatory and institutional reform in Financial Services Sector, FSS as money is oxygen to economy but not flowing as a result of bottlenecks.
“Government needs to create a Prudential Regulatory Authority – to supervise banks to lend. Create a Financial Conduct Authority to get banks to behave. Consequently limit CBN to monetary policy.CBN should focus on lending, interest rate and exchange and take away banking supervision to new Prudential Regulatory Authority and banking ethics to new Financial Conduct Authority. If banks focus on lending and not trading, money will flood the system for productive value.”
Commenting on alternative sources of revenue, he said: “We will also need to urgently explore alternative income sources from agriculture, maritime, aviation, infrastructure, mining etc. If government’s efficiency is enhanced and the states are required to contribute as economic enablers, then there will be less strain on the national purse and states will be forced to generate income.”