Former AfDB president hopeful of speedy growth for Nigeria

Former president African Development Bank (AfDB), Donald Kaberuka, has raised hope about the possibility of Nigeria’s economy adjusting once the nation’s currency improves to a single exchange rate.


Kaberuka said this while answering questions on TheCable, at a World Bank-IMF meeting in Washington, stating that there is a lot for Nigeria to do with the current oil price at $40.


He gave his professional view on how to restore speedy growth in sub-Saharan Africa, saying that: “As for Nigeria, I cannot speak for the Nigerian government, the authorities are here, they can speak for themselves”.


“I can only give an expert view, and here is my view; in the years past, Nigeria’s budget was based on $40 per barrel of oil, and you did quite well, remember,” Kaberuka remarked.


Having served as AfDB president from 2005 to 2015, the former African Development Bank chief said a $50-barrel price is an exclusion for Nigeria, and he was optimistic that the country could do well at $40 a barrel.


“$50 and above was an exception, so it is a new normal for $40, and with even $40, you can do quite a lot, in terms of composition of expenditures, internal subsidies, the kind of things you have done in the past.


“It is not only on the fiscal side, on the monetary side, I do like to insist on the dependence of the central bank; in law and in fact. And then the central bank uses that independence to ensure there is accommodative monetary policy.


“Right now, they have about five exchange rate and it has been very complicated, and at some point that has to come together, and when it comes together the rent will disappear and you will find out that the economy will adjust.”


Speaking on other African nations, the Rwandan economist observed that most of the economies claiming a slump in commodity prices for their growth, are not taking into consideration all the factors inherent in it, especially policies, which play bigger role.

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