L-R: Chief Babajide Olatunde-Agbeja, Chairman/CEO, Boff and Company Insurance Brokers Limited and Dr. Biodun Adedipe, Chief Consultant, B. Adedipe Associates Limited, during the media parley organized by both Boff & Company Insurance Brokers and B. Adedipe Associates Limited, held recently in Lagos.
Following the continuous rise in the price of crude oil in the international market , the Federal Government should use the surplus to either reduce the budget deficit or use it to build infrastructure.
Chief Consultant of B. Adedipe Associates Limited, Dr. Biodun Adedipe, gave this advise
during a media parley sponsored by Boff Insurance Brokers Limited and B. Adedipe Associates Limited, in Lagos.
He noted that the price of crude has been favourable to the economy.
“The price of crude has been favourable to us. It is either you use the gain to reduce the deficit, or alternatively, you use that gain to build infrastructure, which ultimately will also increase government revenue.”
Adedipe also warned that the forthcoming election could create liquidity pressures in the economy as there will be too much money in circulation.
“In pre election years, politicians spend a lot of money and that creates liquidity pressure. You have so much money circulating and that stands to put pressure on prices, so it will be expected this year that there will be inflationary pressure.”
Adedipe also decried the high volume of imports against exports in the country.
He said: “In recent years, imports value in Nigeria had become far greater than exports. Yes we export crude oil, we export condensates, as well as associated gas. Inspite of that, we have been importing more than exporting and that has been creating employment for other countries to the detriment of our country.”
He noted that, there is nothing wrong with borrowing, adding that, “but don’t borrow to buy food, don’t borrow for consumption, if you must borrow, borrow for anything that is investment in nature. We produce crude oil but don’t refine”
On the insurance sector, Adedipe said: “For the insurance sector to grow, government need also to be responsible to its insurance obligations which talks about paying premium. There also must be need for flexibility and also ensuring that compulsory insurance is enforced because enforcement had always been an issue.
“If the government is responsible and put a lot of effort into enforcement, then what we have today as compulsory insurance we can actually create more value from. And when insurance sector is vibrant, it will galvanize businesses and individuals to take risk and that is how economies grow.
“The freedom to take risk is on the back of a vibrant insurance sector, so the conversation should be how do we make that sector vibrant and that brings us to involve more interactions between government agencies and the insurance sector, so that all the stakeholders constantly are engaging and so whatever is needed to be done to make us deepen insurance, the government will keep making that happen.”
