Renowned economist Bismarck Rewane said Nigeria needs new money to survive the current economic downturn.

Rewani stated this in an interview on Channels Television’s Politics Today on Tuesday.

The economist said the government must take urgent action to reverse the trend because “doing nothing is now a recipe for chaos.”

He said, “First of all, you have to understand; you have to implement efficiently because the consequence of misunderstanding is disorderly change, and disorderly change is not what we want. It is a recipe for chaos.

“The truth is that you have to be honest with yourself, and you have to understand that there is no quick fix. Come clean to the Nigerian people; tell them this is the extent of the problem. We did in the past during the civil war. Chief Awolowo came back and said, this is what we have to do.

“So come clean, block the leakages, and look for competence. Competence is more important at this time than loyalty. So look for competence and ensure that you execute efficiently. 

Rewani said the government should shun any solution that involves printing more money.

According to him, the printing of more money “is the panacea for inflation, and inflation is the beginning and the end of the currency, and the end of the currency is the beginning of a political crisis.”

He said, “First of all, understanding, coming clean with people. You see, the commodity in the shortest supply in Nigeria today is the truth. There is no truth in public, private, or society; dishonesty has become the norm. 

“Come out and say the truth; this is what we have to do, and then everybody will understand and deal with the problem. Confidence is a function of integrity and truth.”

Speaking on a lasting solution to the crisis, Rewani said, “First of all, you have to increase productivity, but that is also not a quick fix.

“There is a discussion about the minimum wage; we need to make this realistic. You have to do something about leakages in the system, and you have to improve the confidence level of investors.

“Without new money, I am talking about new money in big quantum. Without new money of the magnitude that can save this economy, you are going to face some difficulties because once economic decay sets in, all you see is you going down the drain.

“Fiscal policy that would incentivize productivity, concessioning the roads, concessioning the airports, and taking government out of those entities where they have no competence, either they don’t have the competence or they don’t have the integrity to run those businesses;

“…let them get out of there and use the increased revenue from subsidy reductions and exchange rate realignment; let them use that to do the new things they have to do.”