Chartered Bank Sees Public, Private Capital as Boost to Economic Development

In getting new investment activity and economic growth, Standard Chartered Bank called for the partnership and collaboration of public and private capital to boost development in the country.
The Bank, in Lagos at the 2015 Standard Bank West Africa Investors’ Conference on ‘From Promise to Progress’ emphasized the importance of public and private capital on account of the sharp reduction in government revenues, the high recurrent expenditures and the modest medium term outlook for revenue recovery as the global oil supply and demand dynamics appear to have shifted permanently on account of the emergence of U.S. Shale oil producers as the new swing producers.
The event which was held from September 16 to 18, 2015 had a strong focus on Nigeria’s unprecedented political transition sustainable progress will be made more challenging on account of a sharp shift in the global economic context in which Nigeria is operating at present, given the end of the commodities boom and the sharp reduction in global commodity prices, including crude oil on which the economy has been dependent.
Speaking at the event, chairman of Stanbic IBTC Bank Plc, Mr. Atedo Peterside said, “It is no secret that in recent years, Nigeria derived close to 70 per cent of its federal government budgetary revenues and 90 per cent of its foreign exchange earnings from crude oil sales and that both price and production levels have fluctuated below desired levels. 
“Efforts at economic diversification are still at a relatively early stage of execution and this has created a very challenging backdrop for policy makers to operate against.”
He however said for Nigeria to accelerate its economic growth and job creation, must accept that public sector capital will be insufficient to deliver the kind of growth needed, saying government needs to articulate a clear, consistent policy direction that states Nigeria’s priorities upfront and makes the rules of engagement of private capital as clear as possible. These rules must also be holistic rather than arbitrary and should not hinge on the unbridled fixation with keeping all inherited factor prices, subsidies and exchange rates constant.

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