The Federal Government must write off debts of electricity distribution companies, Discos, in order to solve the lingering power supply problem and enhance economic growth, said Bismark Rewane, Chief Executive Officer, Financial Derivatives Company.
Rewane, who stated this in a keynote address at the Parthian Economic Discourse 2024, PED 24 held in Lagos, noted that Nigeria's economy will begin to exit the most painful phase of the reform adjustment process in 2025.
Rewane said: "We have to change a number of things. We have to deal with the power problem. First and foremost, you will not get growth unless you solve the power supply problem.
"You cannot deal with the power problem without writing off those debts the Discos owe the banks. If you do that and then you get the metering system in place."
The Parthian Economic Discourse 2024 focused on the theme "Policy Shifts: Strengthening Economic Institutions for Sustainable Growth," It provided a platform for thought leaders to deliberate on the country's critical challenges and opportunities as it approaches 2025.
In his 2025 macroeconomic outlook for Nigeria, Rewane delivered a hopeful yet pragmatic assessment of the nation's economic trajectory. He projected that the economy would begin to recover from the toughest phase of its reform adjustments by 2025, emphasizing the importance of strategic policy implementation and institutional reforms.
Rewane highlighted several key points during his address. He noted that while the fundamentals of Nigeria's exchange rate indicate that the Naira should be stronger, achieving stability depends on an efficient and effectively managed FX system. He stressed that the primary challenge lies not in the reforms themselves but in their management, citing poorly sequenced policy changes and insufficient structural reforms as significant obstacles.
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A panel session followed the keynote, offering deeper insights into the reforms needed for sustainable growth. Moderated by Dr. Benson Uwheru, Group Executive/GCOO of Parthian Group, the session featured Professor Olayinka David-West, Associate Dean of Lagos Business School, Olufemi Shobanjo, CEO of NGX Regulation Limited, Dr. Chinyere Almona, DG/CEO of the Lagos Chamber of Commerce and Industry, LCCI, and Yemi Sadiku, Executive Director of Parthian Group.
Olufemi Shobanjo discussed the role of liquidity in capital markets, emphasizing initiatives that enhance investor confidence and ensure market stability. Yemi Sadiku highlighted the need for an enabling environment to attract infrastructure investment, urging the government to create policies that encourage private sector participation.
The discourse concluded with a reinforced call to tackle the root causes of Nigeria's economic challenges to achieve long-term sustainable growth. As Rewane aptly remarked, "The things outside our control far exceed what we can control, but by addressing these root causes, Nigeria can unlock sustainable growth and economic stability."
