By Adesina Wahab, LAGOS

Former Chairman of the National Economic Summit Group, NESG, Mazi Sam Ohuabunwa, has said the federal government is not addressing the main issue regarding reducing economic hardship and poverty in the country.

According to him, the country suffers from cost of living crisis and cost of governance crisis, but that the FG is only focusing on addressing the cost of living crisis.

Speaking in Ikeja, Lagos during a breakfast meeting with fellows and members of the Institute of Certified Sales Professionals, ICSP, he opined that the government was even addressing the cost of living crisis in a wrong manner.

He spoke on the topic “Overcoming the challenges of the price-quality conundrum in a period of acute costs instability.”

“ Even the government is not approaching the cost of living crisis in the appropriate manner. It is not throwing away money through palliative that does not get to the people who need it the most. They must address the cost of governance crisis by reducing the cost of governance and freeing funds for socio-economic development of the country.

“Cost of governance is too high. We don’t need the large number of political appointees we are having now. The National Assembly should be unicameral and the legislators to work on part time basis. Even the civil service should be trimmed down. A situation whereby almost 85 percent of national budget is spent on recurrent expenditures is not ideal for us,” he stated.

Ohuabunwa noted that funds freed from reducing the cost of governance could be used to create conducive atmosphere for businesses to thrive, build social and other infrastructure and make life better for the citizenry.

He said most businesses in the country are dying or are dead because of government policies, ineptitude of state agencies and the lack of infrastructure to make them do well. 

The President of the institute, Mr Arthur Ozoigbo, said there was need for stability in the economic policy regime of the government. 

“Businesses are badly affected by lack of stability in the economic policy of the government. Today, the government comes up with a policy , tomorrow, it is changed. Also, lack of stability in the exchange rate is not good for businesses. Even if it is N1, 500 to a dollar, that our currency will exchange for, if it is stable, business owners can plan. They can make projections, “ he said.

On his advice for business owners, Ozoigbo urged them not to despair, but to keep trudging on.

“Those who have large stocks in their warehouses, they should push their stocks out. It is better the stocks are out than they being in warehouses, piled up,” he noted.

Also speaking, a fellow of the institute, Dr Dele Sobowale, said the foreign exchange challenge facing the country may linger for a while.

Sobowale, a columnist with Vanguard newspaper, blamed the situation on the inability of the country to generate enough forex through export.

“We are not meeting our oil quota and not exporting enough. Also, many businesses that would have produced for export are dead or dying. If government does not take the necessary steps, the exchange rate may shoot up. We are not earning enough forex and at the same time, we are import-dependent,“ he stated.