Fidelity bank card banner Camano banner

How Nigeria will get out of economic recession: FG

By News Express on 30/11/2016

Views: 2,638


Massive investment in infrastructure is the surest way to get the country’s economy out of recession, the Minister of Budget and National Planning, Senator Udoma Udo Udoma, on Tuesday told laureates of the Nigerian National Order of Merit.

Addressing the annual forum of the laureates in Abuja during their 9th Award Winners Lecture, Senator Udoma said government therefore is looking at various strategic ways of restoring revenue and getting the economy back on the path of sustainable growth.

He pointed out that in spite of the revenue shortfalls experienced during the 2016 budget year, N753.6 billion has so far been released for capital expenditure, targeted principally at the Ministry of Power, Works and Housing, as well as the Ministry of Transportation. 

“This, in fact, exceeds the aggregate capital expenditure budget for 2015,” He added.

Justifying the priority given to infrastructure the Minister said “there is no doubt that government-led investment in public infrastructure is one of the fastest ways to get an economy out of recession.”

He told the gathering that government has been having difficulties funding the Budget because of the disruptions of oil production in the Niger Delta; but noted that notwithstanding current challenges, government must find ways to increase the level of its spending.

“At one time, almost half our production was shut in because of pipeline vandalism. This compounded our economic situation and pushed us into the current recession we are experiencing in the country. We are looking at ways to restore our revenues and get the economy out of recession and back on the path of sustainable growth.”

The explained that the resultant epileptic income stream also affected exchange rate stability, another issue which has to be addressed if the country is to succeed in its development drive.

According to him, exchange rate stability has been a major issue which the Federal Government has been grappling with as a result of the reduction in foreign exchange earnings caused by the fall in crude oil exports.

Therefore, he said, the Federal Government will welcome every genuine idea from experts on how to address these economic challenges; and is looking forward to receiving the various papers and recommendations from the lecture, some of which might be directly integrated into the National Recovery and Growth Plan which is currently being tidied up.

The Minister was delighted that the forum which had the theme “Mono-economy, Diversification, Exchange Rate stability and the Development of the Nigerian Nation”, was organised to provide a platform for the laureates to deliberate and exchange ideas on salient issues of national interest thereby contributing to national development.

The key words of the theme, he noted touches directly on issues that are very reflective of the challenges the nation is currently facing.

“As you are aware, this administration came in to meet an economy that was suffering from declining revenues and GDP growth, rising inflation, weakening balance of payments, declining foreign reserves, rising public debt and recurrent expenditure, a weak capital market, as well as rising unemployment. We designed the 2016 Budget specifically to address these issues.”

He pointed out however, that with the implementation of some of the reforms of government, results are beginning to show in some strategic sectors like agriculture which recorded a 4.5% and solid minerals which showed a 7% growth in the third quarter of 2016.

“We said we would take action to improve Nigeria’s business environment; and now the President has set up a Presidential Council on Enabling Business Environment.  This is designed to achieve the target set by the Strategic Implementation Plan (SIP), of moving Nigeria at least 20 places up the World Bank Ease of Doing Business Index within one year so as to attract more domestic and foreign investments.”

He emphasised that government’s goal is to have an economy with low inflation, stable exchange rates, and diversified and inclusive growth.

“I am optimistic that many of the presentations made at this forum will contribute ideas and initiatives that government will find useful in developing and implementing the Economic Recovery and Growth Plan,” particularly “initiatives addressing our poor competitiveness, initiatives on how to improve our business environment, and, most importantly, initiatives which can help us in attracting investment in infrastructure, especially power, roads, rail and ports.”

The Keynote speaker, a development economist and one-time Deputy Governor of the Central Bank of Nigeria, Dr. Obodiah Mailafia, in his paper titled “Diversifying the economy and re-engineering growth in an age of diminished expectations,” traced the root of the current economic situation largely to dependence on a mono-cultural economy, fiscal indiscipline and delay in implementing enabling policies.

Dr. Mailafia explained that the reckless fiscal indiscipline subsequently resulted in massive dollarisation of the economy which eventually snowballed into recession. As far as he is concerned, “what we call recession is just dollar scarcity; print dollars today and recession will go,” he stated.

He stated that when President Buhari took over the helm of affairs in May 2015 he expressed shock at the grim spectre of a virtually empty treasury. “Apparently, the erstwhile PDP government had been secretly borrowing heavily just to pay salaries to remain afloat. Security alone had walloped a quarter of the budget even as Boko Haram terrorists were having a field day in the North East. At the same time, we were losing more than $1billion a month for years under connivance of people in government, the armed forces and reptilian types from as far afield as Lebanon, and Ukraine. Meanwhile, the new electoral-political cycle between the last quarter of 2014 and the first quarter of this year found us in another spending spree. It was dollar galore.

“The end result was the fueling of inflation as well as massive dollarisation of the economy. The combined forces of rent-seeking, political financing, geopolitical crisis and insurgency, falling oil prices, inflation, political uncertainty and massive dollarisation of the economy was to put heavy pressure on the exchange rate, leading to the devaluation of the naira. For a heavily import-dependent rentier economy, devaluation puts additional pressures on all sectors of the economy, leading to recession, layoff and a deepening crisis of unemployment and widespread misery,” he pointed out.

•Photo shows Senator Udoma.

Source News Express

Posted 30/11/2016 05:39:41 AM

 

 

CLASSIFIED ADS

 

You may also like...
China conducts largest military exercise as troops train...

I didn’t reject chieftaincy title from Olubadan of...

Aso Rock rejects Boko Haram’s condition for the...

INEC achieves 95 per cent of PVC distribution...

Court to hear Dasuki’s suit on threat to...

NYSC urges corps members owed allowances to be...

Teachers’ Sack: No amount of protests will make...

Biafra Avengers emerges, threatens Buhari, South East governors...

Bayelsa Government employs 904 additional workers

Gunmen kill newly elected Imo APC LG Chairman...

Northern CAN disowns opponent of Christian courts, declares...

Algeria’s constitutional council cancels presidential election

 

Latest News FIXING NIGERIA: A calse for national rebirth IPOB threat: Igbo governors shelve travel plans Sex worker blames mother for ending up a prostitute FG, Labour meeting on minimum wage deadlocked again Akpabio charges Niger Delta youths on peace, unfold plans for situation analysis on projects executed in the region Insecurity: Enugu Police boss incompetent; please redeploy him, group tells Buhari Niger Delta youths issue NDDC 7-day ultimatum over water hyacinth job Kogi West: Smart Adeyemi is ‘my political wife’, says Dino Melaye Foreigners have hijacked Boko Haram — Gov. Zulum When Governor Dickson Pulled Nigeria to Toru-Orua The Igbo crime culture (2) by Fredrick Nwabufo Gov Sanwo-Olu to present keynote address at the 4th edition of CMC Africa Awards slated for Aug. 25 in Lagos

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (530,615 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (439,180 views) Shameless Genevieve Nnaji exposes breasts in public (384,193 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (323,301 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (290,884 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (251,548 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (246,440 views) 10 cars more expensive than Jets (233,884 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (228,415 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (214,642 views) Lagos plane crash: Journalist releases victims’ names (193,387 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (191,292 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (99) Business & Economy (4,407) Business Verdict (79) Columnists (1,097) Complaints & Requests (95) Enterprise & Opportunities (215) Entertainment (648) Features (798) Global Business Monitor (424) ICT Monitor (58) International (3,859) Interview (199) Live Commentary (30) Love Matters (166) Maggie's Blog (387) News (50,352) Opinion (1,334) Pidgin (17) Politics (11,337) Religion (1,088) Sports (2,135) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera