Lagos - Two financial analysts on Thursday in Lagos urged the Federal Government to exploit non-oil sectors of the economy to boost the country’s revenue and external reserves.
The News Agency of Nigeria (NAN) reports that the analysts spoke against the backdrop of the recent N1.8 billion fall in the nation’s external reserve.
Samuel Durojaiye, President, Finance Houses Association of Nigeria (FHAN), said the fall was an indication of instability in oil export and price.
He said: “There’s instability in oil export and price, wherewith over 90 percent of our foreign exchange earnings are generated.”
“Though the drop has not reached a critical level and it should not jeopardise the economy, government needs to look into other potential sectors to generate foreign currency. “
“Government should also beef up the oil sector and increase oil export to match up our consumption.”
Durojaiye further advised government to reduce its running cost and direct majority of its expenditure toward long term structural projects.
Eddie Osarenkhoe, a former president of the FHAN, said that government investing in other sectors of the economy would help to generate more external earnings.
According to him, other non-oil sectors can boost the country’s foreign currency if government invests adequately in them.
Osarenkhoe said: “There is also a need to review our taxation system. It is possible for us to generate huge revenues from both direct and indirect tax.”
NAN also reports that a data posted on the Website of the Central Bank of Nigeria on Aug. 6, showed that the nation’s external reserves dropped by 1.8 billion dollars.
The data showed that external reserves dropped from the peak of 48.85 billion dollars in May to 46.98 billion dollars on Aug. 5.