By Babajide Komolafe, Economy Editor, Peter Egwuatu, & Udeme Akpan

Notwithstanding the 17 months remaining for President Buhari to conclude his term, the appointment of Dr. Doyin Salami as Chief Economic Adviser to the President (CEAP) can still yield positive impact  for the economy.

This was the position of some private sector operators  who spoke to Saturday Vanguard on the January 4th appointment of Salami,  who has been chairman of the Presidential Economic Advisory Council (PEAC) since October 2019. 

According to the Presidency, Salami as Chief Economic Adviser to the President, CEAP,   is expected, “to address all issues on the domestic economy and present views on them to the President; closely monitor national and international developments, trends and develop appropriate policy responses; develop and recommend to the President national economic policies to foster macro-economic stability, promote growth, create jobs, and eradicate poverty, among others”, the Presidency said in a statement announcing the appointment. 

 Private sector operators  commended  Salami’s choice as CEAP, noting his experience especially as a former member of the Monetary Policy Committee, MPC, of the Central Bank of Nigeria, CBN.  

They however stressed that Salami’s  appointment is coming quite  late, with 17 months to the end of the administration.

But some opined that the erudite economist can still make an impact on the economy, provided his advice is  implemented by the President. 

Doubts

“It is a good appointment but it’s too late to cry when the head is off”, said  David Adonri,  Executive Vice Chairman, Highcap Securities Limited,  

He  added: “ Professor Doyin Salami is a sound economist with good knowledge of monetary policy. Remember he’s been a member of MPC for several years. He is a wonderful choice for the appointment but I am afraid, 17 months is too short for any meaningful impact. 

The impact of the Presidential Economic Advisory Council on economic policies of the Federal Government under  Salami was not felt and it’s not likely that the President will take his advice now.

 Also stressing the timing of the appointment and potential for impact on the economy, Victor Chiazor, Head of Research and Investment, Fidelity Securities Plc, said:  “A chief economic adviser to the president should have been appointed since the inception of this administration but the president decided against having one. 

“The recent appointment of Professor Doyin Salami as the chief economic adviser is a positive development as we expect more advanced engagement between the president and his adviser as against what would have been applicable with the presidential economic advisory council. 

“We however do not expect any major reaction from the markets on the back of this announcement given the timing. 

“The economic adviser would also only advise but it remains the decision of the president on whether to act on the advice or not to act. With less than seventeen months to the end of this administration, the new appointee has about a year to make a lasting impact on the economy as the government will be more focused on the next election come 2023.”

Hopes

However, Dr Adebayo Adedokun, Trade, Finance and Development expert at the Department of Economics, University of Lagos, opined that Salami can still make an impact notwithstanding the lateness of his appointment. 

ALSO READ: Nigeria not ripe for cashless economy?

 Salami, he noted, understands the terrain of Nigeria’s economy and will harvest ideas from his compatriots within the PEAC  and those who are in academics. 

“The time frame may be short,  but it is still possible to make a remarkable impact if the government will take their expert opinions on several economic issues bedevilling the country. It is one thing to have expert advice on issues, it is another thing to implement,  I doubt if the current government has the political goodwill to make a lot of difference in the remaining lifetime of this administration”, he added.

Agenda for Salami

Meanwhile, the Center for Promotion of Private Enterprise (CPPE) has outlined an agenda for Salami as CEAP, stressing that the economist is expected to perform, as his appointment  shows that the President wants to reset the economy. 

 Chief Executive Officer, CPPE,  Dr. Muda Yusuf, in a statement said: “We applaud the appointment of Dr Doyin Salami as the CEAP.  Dr Salami is bringing to this position a pedigree of intellectualism and robust knowledge of the nexus between sound economic principles, macroeconomic stability, investment growth and the welfare of the citizens.”

Concerning the timing of the appointment, he said: “Though coming rather late in the life of the administration, it is a fitting appointment nonetheless.  It is worthy of note that Dr.  Doyin Salami is the current Chairman of the Presidential Economic Advisory Council.

 “His appointment perhaps signals the aspiration of President Buhari to reset the economy and correct some glaring distortions that have been undermining investors’ confidence over the last couple of years. 

“It is imperative to refocus economic management strategy for growth, efficiency, productivity, sustainability and inclusion.  However, the impact of the appointment would be felt only to the extent that his advice and that of the economic advisory council are adopted and implemented to shape the course of monetary, fiscal and regulatory policies as well drive vital reforms.

 On expectations, Yusuf said, “ We look forward to the espousal of the following policy pathways to ensure a quick reset of the Nigerian economy for accelerated recovery and growth: 

“Institution of a market based foreign exchange policy framework to correct current distortions bedevilling the foreign exchange market.  This would ensure the normalization of the foreign exchange market and unlock capital inflows into the economy.

“Propose sustainable mix of policies to stem the intense inflationary pressures in the economy;

“Ensure effective coordination between the fiscal and monetary policies; 

“Ensure synergy between key economic and investment ministries and agencies to ensure policy and regulatory coherence;

“Infuse a general equilibrium mindset in the policy making processes to ensure a broader comprehension of the impact of economic policies; 

“Promote the reduction of fiscal deficit monetisation because of the profound inflationary outcomes.

Promote the philosophy of a level playing field for all investors in the economy; 

“Fixing the port congestion crisis, cargo clearing constraints and traffic gridlocks along the Lagos ports corridor; 

“Foster a regime of trade facilitation culture among the agencies at our ports; 

“Encourage a review of the Cash Reserve Requirement for better financial intermediation in the banking system.”

 Also speaking on what is expected from Salami as CEAP, Mr. Olabode Sowunmi, CEO, Cabtree Ltd & Vice-Chair Gas-To-Power study group of the Nigerian Gas Association, NGA, said: Dr Salami comes in on the back of a big reputation that he has earned over the years.

“He has also worked with the President in the last couple of months meaning he should be familiar with the working environment and the task at hand.Thats to say there is no excuse for not hitting the ground running. 

 “Moving forward, it should be appreciated that we are in a complicated economic system, given the many challenges with oil and the debt burden. 

 “However, it should not stop policies and initiatives (home grown) that will increase the capacity of our small business to move out of the current stagnation and grow. We also expect that such policies will cause these SMEs to employ people and to attract investments into the economy. 

 “These mentioned areas are where his Economics capacity is expected to shine. Anything short of this would not be a pass mark for him.”

Vanguard News Nigeria