Reduced revenue: Nigeria needs to increase oil export

TO forestall any macro economic crisis that may occur as a result of the country's dwindling revenue, the Federal Government has been advised to increase crude oil export to 4million barrels per day (mbpd) from its present 2.3mbpd.The government was also urged to ensure the judicious use of the revenue accruing from the increased oil export on key areas that will grow the economy.A leading economic analyst and the Managing Director of Citigroup, Dr David Cowan, gave the advice on Monday at the Securities and Exchange Commission's Nigeria Learning Series lecture in Abuja.Cowan also pointed out that there was need for the country to address key challenges of inflation, propensity for expenditure, among other imperatives in order to protect the nation's economy from the vagaries of the sick global economy.Speaking within the scope of the theme of the lecturer 'Global Economic Trends and the Impact on Nigeria's Capital Market,' Cowan reflected on recent developments in the Euro zone and US and their implications for the global economic order, stating that the passage of the Petroleum Industry Bill would help Nigeria to bridge the funding gap in the efforts to create a strong infrastructure base to drive ongoing programmes for sustainable growth of the economy.While lauding the monetary reforms initiated by the regulatory authorities, Cowan argued that one of the major areas Nigeria could improve on her investment drive for development was to borrow more at a time when interest rates in Europe and the American countries are getting to their lowest ebb.He, however, said such borrowed funds would only create the desired impact on the economy if invested in critical resource areas that would boost productive activities at all levels of the economy.
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