Money market reporting: WAIFEM, ACBF train analysts in sub-region
.Advise countries in sub-region to diversify economy
By Udeme Clement (In Abuja)
The West African Institute for Financial and Economic Management, WAIFEM and African Capacity Building Foundation, ACBF, are training financial analysts and money market reporters in Nigeria and other countries within the West African sub-region, on modern techniques of reporting activities in the financial system in line with the global trend.
The capacity building programme currently taking place at the training centre of the Central Bank of Nigeria, CBN, in Lagos, has drawn participants from Liberia, Gambia, Ghana, Nigeria and Sierra Leone.
The opening lecture for the training with the title, “Understanding the Sub-regional Economy”, presented by Dr. Christopher Orubu, captured the measures needed to use in determining the size of economy in the sub-region.
Dr. Orubu explained, “The two common measures that can be used in determining the size of economy in the sub-region are population and the level of economic activities. For instance, Nigeria alone accounts for 52 percent of the population in the sub-region. Also, economies within ECOWAS are generally dependent on commodities, mainly natural resources or agricultural products, which prices are relatively volatile”
He explained, aside from Nigeria and Liberia with negative growth rate in 2016 fiscal year, other countries within the sub-region recorded positive growth rate. For instance, Republic of Benin realised 3.98percent growth, Burkina Faso made 5.91 growth rate, Cape Verde 3.91percent, Cote d’Ivoire 8.33percent, Gambia 2.21percent, Ghana 3.57percent and Guinea 6.62percent.”
He added, “Nigeria has the third largest youth population in the world after India and China. Though economic activities are distributed across several sectors like agriculture, industry, construction, trade and services, the largest proportion of the population engage in agriculture. For instance, Nigeria’s economy is growing but does not translate into development, as unemployment, poverty and inequality are still on the increase”.
Since 1970s, the country has been operating an essentially mono-cultural economy that is almost entirely dependent on crude oil, which currently accounts for more than 90 percent of total export earnings and over 70 percent of total government revenue. If the price of oil declines, the economy will experience crisis, an example was what happened in 2016, when Nigeria’s economy entered in to recession”.