Some economists have called on the Federal Government to unlock and harness the dead capital in real estate and other assets for the improvement of the Nigerian economy.
Chief Economist Partner, PwC Nigeria, Dr Andrew Nevin, made the call at a stakeholder forum organised by the Lagos Chamber of Commerce and Industry in collaboration with PwC.
The forum had its theme as ‘Assessment of government’s economic intervention and the way forward’.
Nevin said in his presentation that the PwC estimated that Nigeria held at least $300bn or as much as $900bn worth of dead capital in residential real estate and agricultural land alone.
“The government has a lot of real estate and other assets that are currently unproductive and needs to be unlocked. No better time than now to unlock and harness this capital for wealth creation and economic growth,” he said.
He also asked the government to restructure the fiscal plan, manage the risk of debt trap and put in place a framework that ensures transparency and accountability across ministries, departments and agencies.
Similarly, Fiscal Policy Partner and Tax Leader, PwC Nigeria, Taiwo Oyedele, urged the government to unlock dead capital and optimise assets.
He emphasised that the government needed to cut wastes and expand tax base with no new taxes, no higher rates and no additional compliance burden.
Oyedele said, “The government does not need to introduce new taxes and increase the rate of existing taxes; it would be a wrong time. What the government needs to do is to find new tax payers, not new taxes.”
Addressing what businesses could do for sustainability, Oyedele listed staying liquid, staying productive and developing agility as businesses’ top priorities during COVID-19.
The Chief Executive Officer, Economic Associates, Dr Ayodele Teriba, asked the government to trace companies that had been displaced by the ripple effects of COVID-19 and to pay proportionate attention to them.
He added that the impact could not be generalised and companies across sectors must be managed accordingly.
