Lexy Blog

Reactions have continued to trail the 2012 budget proposal presented at a joint session of the National Assembly by President Goodluck Jonathan recently. In the face of economic uncertainty, having a budget that would boost economic growth and development is pertinent, writes ALEXANDER CHIEJINA During the military regimes and up until 1999, when the country transited to democratic rule and beyond, Nigerians have been greeted by impressive budget speeches, eloquently delivered in past Head of states and President. Unfortunately, the implementation has not matched the words, as economic policies often lack continuity and projects are needlessly discarded or abandoned. Remarks like “We have what it takes to be a great nation or a world power. But we have never challenged ourselves sufficiently over the years to attain this desired goal. It is our hope and sincere belief that this budget will challenge us; and to take the challenge, we must tighten our belts. To do so, we must ens

Proposed ban on cement import: In whose interest? The Federal Government’s proposed ban on cement importation has generated divergent views from industry experts. ALEXANDER CHIEJINA in this piece wonders whose interest the ban will serve. Nigerians woke up to herald the New Year with pomp and ceremony only to be greeted with the news of the Federal Government’s intention to withdraw the subsidy from Premium Motor Spirit (PMS). Following Federal Government’s withdrawal of petrol, massive protests across various parts of the country rented the air given the socio-economic implications the removal will have on Nigerians. Besides, the withdrawal generated heated debates by Nigerians from all walks of life, including the civil society groups and the Nigerian Labour Congress (NLC). Bearing in mind that fuel subsidy hasn’t benefited most Nigerians, several economists see the subsidy regime as hugely corrupt, wasteful and a drain pipe from the treasury into the pockets of ri

Non-oil exports critical in diversifying the economy Over the years, Nigeria’s major revenue earning has been from crude oil. However, following global economic uncertainties and instability in crude oil prices in the international market, experts have tasked government to diversify the economy through non-oil exports, writes ALEXANDER CHIEJINA. Over the years, crude oil has continued to remain the nation’s major revenue earnings, raking in billions of dollars annually. Due to the instability in crude oil prices in the international market and growing uncertainty as regards how long this monolithic product will remain the major revenue earner for government, the issue of diversifying the economy has continued to generate heated debates among Nigerians from all walks of life, including economic and financial experts. Going down memory lane, Nigeria was a major exporter of coal and tin in the 1950s. Even up to the 1970s, the country was also a major exporter of agricultu

Need for transparency in the banking sector I n most countries of the world, economies and financial markets were challenged in 2011 following the Eurozone debt crisis and its undercurrents which swept through emerging and developed markets albeit in varied dimensions. Heightened sovereign risks for debt-ridden Greece sent shivers down the spines of European banks and the global corporate world with substantial exposures to the Euro. While financial regulators and governments around the world are putting in place new regulations to forestall financial meltdown that has cost the globe billions of dollars never reoccur, Nigeria has not been left out of the reforms drive. Since 2008, the Central Bank of Nigeria (CBN) has rolled out several new rules to ensure that banks adopt best practices in their operations in a bid to prevent collapse that has cost the nation’s economy trillions of Naira. Up until the previous financial crisis have shown, rules and regulations are me

A mining site in Nigeria Huge solid mineral deposits lie in various parts of Nigeria. However, this goldmine is yet to be effectively explored – despite the vast opportunities it offers – in order to diversify the nation’s revenue earnings, writes ALEXANDER CHIEJINA Following global economic recession in the late 1980s and early 1990s, developing countries began to liberalize their external trade to improve balance of payment and increase economic growth through provision of incentives to attract capital in-flow and investment. Interestingly, developing countries, especially in Africa and Latin America, turned to solid minerals exploration as a solution to sustained economic growth. This economic initiative paid off as mining companies have continued to play key role in the economic development of these countries. Countries like South Africa, Ghana and Tanzania remain critically dependent on earnings of solid minerals. As a result, countries introduced liberal reforms to meet i