Earlier, the FGN announced a new 8-man Economic Advisory Council (EAC) to replace the Economic Management Team (EMT). Notably, the EAC consists of a good number of tested and trusted economists whose track record seemed to have triggered excitement across both sides of the political divide. The overall role of the council includes advisory on fiscal policy operation, GDP growth, domestic and international economic policies.
Clearly, the announcement is the most cheery development in the economy since the inauguration of the new administration. We believe that this traceable to the antecedents of the majority of the members of the new EAC, Chaired by Prof Doyin Salami, alongside big names like Prof. Chukwuma Soludo, and Mr. Bismarck Rewane. A quick review of commentaries from key members of the team suggest that many of them favour open borders, a less rigid exchange rate regime, oil market deregulation, and other pro-market reforms
While we share the excitement of the market on the announcement, our concern is the extent to which the EAC can push through much-needed reforms across key economic variables. That said, judging by the resolve of the presidency to put together a star-studded economic council, we opine that a near term policy reform is imminent.
United Capital Plc Research
