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The head of the financial derivative company executive, Bismarck Rewane, has called for a measurable and realistic approach to managing Nigeria’s fragile economy.
He warned that harsh expenditure can do more danger than good when investment and security are needed.
Rewane spoke during the appearance of Channels Television on Thursday
He reacted to the new International Monetary Fund Report (IMF) which stated that Nigeria’s economic prospects were obscured by “significant uncertainty.”
He warned that the solution did not lie in cutting public spending, but rather clogging leaks and using more efficient funds.
“Cutting expenses is not the same as optimizing it,” said Rewane.
“What is really suggested by the IMF is that we maximize the impact of our expenses. There are many leaks at the state and federal levels that act as investment repellent.
“But this is not the time for savings. Asking Nigeria to cut expenses drastically now like asking a man with boils to do a hunger strike – it doesn’t make sense.”
While urged fiscal care, rewane quickly clarified that optimization is not a license for reckless expenditure. “We are unable to spend like drunk sailors. Every naira spent must have measurable goals and returns,” he warned.
Rewane recognizes this new reform that was introduced by the President of Bola Tinubu – namely, the removal of fuel subsidies and the unification of exchange rates – but insisted that these steps must be equipped with broader structural reforms.
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“What was successful in 2023 might not work for 2025,” he said. “We have to stop trying to drive forward while looking at the rearview mirror.”
Economists also raise alarm over the continuous insecurity in oil-producing regions, which continue to suppress the output of Nigerian economic life. “Until we improve the insecurity in Delta Niger and other production zones, oil output will remain weak, and so does government income,” he said.
Turning to inflation, Rewane offers a less pessimistic view than the 2025 IMF projection by 30%, predicting the marginal increase to 25-27%. He noted, however, that sustainable liquidity pressure can leave the Central Bank of Nigeria (CBN) with a few choices besides maintaining or even raising interest rates.
He also questioned the new step – this was the new step by the Debt Management Office (DMO) to reduce the issuance of bonds – from ₦ 1.8 trillion in Q1 to ₦ 1.2 trillion in Q2. “This is the wrong direction. Publishing more bonds is one of the difficult steps but it is necessary to absorb liquidity and control inflation,” he said.
Rewane raises concerns over the determination of Nigeria’s rough export prices, revealing disturbing differences. “We sell crude oil at a price of 70 cents, while some of our neighbors get $ 1.20 for the same class. How long can we continue like this?”
He praised the dangote refinery to reduce local fuel costs, call it “strategic development,” but warned that plans by the organization of petroleum exporting countries (OPEC) to increase global production can reduce oil prices further.
On the international front, Rewane commented on the instructions of former US President Donald Trump on Reduction of Tariffs in China. While these steps can ease some economic pressures, he said, global uncertainty is still far from completion.
He estimates that the stabilization of moderate economy between May and June this year and rejects the concern of a deep global recession. “Every recession that comes will be light,” he said. “The world is unable to pay more economic shocks today.”
Rewane was closed on a pragmatic record, urged Nigerian policy makers to bridge fiscal gaps through responsible loan combinations, reducing leaks, and bold fiscal reform.
“This is not a normal time. And to last from an abnormal time, we must make serious adjustments,” he said.
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