Drastic Expenditure Cuts Will Worsen Nigeria’s Economic Woes, Warns Rewane

Drastic Expenditure Cuts Will Worsen Nigeria’s Economic Woes, Warns Rewane

The Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, has cautioned the Nigerian government against making drastic cuts to its expenditure, warning that such a move could worsen the country’s economic situation.

Speaking on Channels Television’s Business Morning program, Rewane emphasized the need for a pragmatic and balanced approach to managing the country’s fragile economy. He noted that drastic expenditure cuts could have severe consequences, particularly in key areas such as security, investment, and inflation control.

“Don’t ask a man with an ulcer to fast,” Rewane said, using a metaphor to illustrate the potential dangers of drastic spending cuts. “Nigeria’s economy is already fragile, and we need to be careful not to exacerbate the situation.”

Rewane’s warning comes as the Nigerian government grapples with a challenging economic environment, characterized by high inflation, low oil prices, and a significant budget deficit. While the government has announced plans to reduce its expenditure, Rewane cautioned that such cuts should be made carefully and in a way that does not harm the economy.

“We need to prioritize our spending and make sure that we are investing in the right areas,” Rewane said. “Security, infrastructure, and human capital development are critical to our economic growth and stability, and we should not compromise on these areas.”

Rewane’s comments have sparked a debate about the best approach to managing Nigeria’s economy, with some experts arguing that drastic spending cuts are necessary to restore fiscal discipline and reduce the country’s debt burden. However, others have warned that such cuts could lead to higher unemployment, reduced economic activity, and increased poverty.

The Nigerian government has not commented on Rewane’s warning, but it is expected to announce its budget plans for the upcoming fiscal year in the coming weeks. As the country navigates its economic challenges, Rewane’s cautionary words are likely to resonate with many Nigerians who are anxious about the future of their economy.