Ogbuotobo Chuks

 According to Professor Charles Soludo, Governor of the Central Bank Of Nigeria the country has all it takes to be Africa’s largest economy. According to him, the size of the country’s GDP currently stands at about $112 billion, making it second to south Africa.

With a record 100 tertiary institutions, producing over 250,000 graduates a year, Nigeria has a rich store of human capital which is required for economic growth. All that is needed is to deploy these people to work and unleash the vast potential of the nation that stands futile in areas of solid minerals, agriculture etc.

According to him, three basic ingredients for success needed to revamp the economy are

–SECURITY OF LIVE AND PROPERTY

–INFRASTRUCTURE

–INSTITUTIONS

In a nutshell, finance adequately encapsulates the above stated points. If the financial system does not work, nothing works in the economy. According to him, the financial system provides for an effective payment system and such a system is what lubricates the entire economy. He said that the financial system must be able to provide the products and services ahead of the demand for them in the economy. In so doing, it acts as a catalyst for development.

Speaking on inflation, low inflation helps preserve the purchasing power of the nation’s economy. In as much as this would be beneficial to everyone in the economy, the “poor” would benefit the most. This is due to the fact that they possess goods and properties that do not change in value as inflation occurs. Relatively, high or variable inflation is the easiest way to poverty, as the purchasing power of money reduces drastically. This in turn only leads to a vicious cycle as interest rate would also be affected in the negative direction.

It will be noted that the governor, under the auspices of the Obasanjo administration has in the last seven years coined out some reforms that is gradually placing Nigeria in a prominent position in the world economy

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