Harmonize financial policies to bail Nigeria from recession – Senate

The Senate on Wednesday asked the Ministry of Finance and the Central Bank of Nigeria (CBN) to harmonize the Federal Government’s financial and monetary policies as one of the ways to bail out the country from the current economic recession.

The Upper Chamber also urged the Executive to urgently negotiate external concessionary borrowing to finance aspects of deficit in the 2016 Appropriation Act.

This is part of the recommendations adopted by the Senate after its two-day exhaustive debate to proffer solutions to the present harsh economic realities confronting the country.

According to the Senate suggestions, which will be officially transmitted to President Muhammadu Buhari by Senate President, Abubakar Bukola Saraki and other leaders of the Senate, it said “The fiscal and monetary authorities must harmonize all policies that lower interest rates for investors in the real sector and small/medium scale farmers.

“The Federal Government should negotiate foreign concessionary borrowing agreements to cover shortfalls in the 2016 budget and the government’s accelerated infrastructural development programme.”

Other measures that can help reflate the economy if immediately implemented by the Federal Government the Senate said, include payment of genuine domestic debts owed local contractors, settlement of salary arrears and pension obligations.

The Senate also urged the Federal Government to utilize pension and insurance funds to finance long term capital lending for agriculture, industry and housing projects as a way of putting money in the pockets of Nigerians.

“The Federal Government should ensure the payment of all genuine domestic debts owed to local contractors who have completed their jobs, settle all salaries and pension liabilities and leverage the use of pension and insurance funds to provide long term capital lending for agriculture, industry, and housing projects.”

“The Federal Government should retool its export promotion policies scheme with export incentives like the Export Expansion Grant (EEG) and the export financing initiatives,” the Senate added.