Nigeria’s Economy: Inflation Hits 18.55%

inflation-increase-in-nigeriaLatest data from the National Bureau of Statistics, shows that Nigeria’s headline inflation has risen to 18.55 per cent its highest in more than 11 years.

According to the statistics office, the 0.07 per cent rise from 18.48 per cent recorded in November 2016, was driven by surges in housing, water and electricity, while the food index also rose to 17.39 per cent, against 17.19 per cent.

The December 2016 report showed that Food Index rose by 17.39 percent (year-on-year) in December 2016, up by 0.20 percent points from rate recorded in November (17.19) percent.

During the month, all major food subindexes increased, with Soft Drinks recording the slowest pace of increase at 7.66 percent (year on year).

Increases were recorded in all COICOP divisions that yield the Headline Index.

Communication and Restaurants and Hotels recorded the slowest pace of growth in December, growing at 5.33 per cent and 8.91 per cent (year-on-year) respectively.

The rising inflation comes as the country grapples with its first recession in 25 years, largely caused by the fall in global oil prices since 2014.

A second quarter report of the statistics office showed Nigeria’s economy had glided into recession, with its Gross Domestic Product contracting by 2.06 per cent, but the government has continued to assure Nigerians that the recession would be short-lived.

The latest assurance on the recovery of the economy was issued by the World Bank, with its prediction that Nigeria will get out of recession and grow its Gross Domestic Product by one per cent in 2017.

In its January 2017 Global Economic Prospects report released on January 11, the global lender said that sub-saharan African growth is expected to pick up modestly to 2.9 per cent in 2017, as the region continues to adjust to lower commodity prices.

FG Commends Nigerians For Resilience Despite Economic Recession

lai mohammed, commends Nigerians on resilience in economic recessionThe Nigerian government has commended Nigerians for their resilience despite the tough times occasioned by the economic recession, assuring them that the government remains committed to implementing realistic policies that will reverse the trend.

The Minister of Information and Culture, Mr Lai Mohammed, gave the commendation in Lagos in his keynote address at the 4th Commonwealth Public Relations Congress.

“We are not unaware of the harsh effects of the recession on the citizens. We share in their pains and we make no excuses as we continue to work round the clock to ensure that this tough time is quickly brought to an end. The good news is that the prognosis for a quick end to the recession is encouraging.

“As the saying goes, the recession is a bend in the road, not the end of the road. The challenge for us as a government is to turn the bend, and we are doing just that,” he said.

Mr Mohammed said that while the Buhari Administration rode to power on the crest of change, there can be no change without discomforts.

He, however, assured Nigerians that with persistence on the part of the government and perseverance on the part of the people, there was definitely light at the end of the tunnel.

“The government is investing massively in infrastructural development: roads, railways, power and creating jobs in the process, as part of efforts to pull the country out of recession,” the Minister said.

On job creation, he said 200,000 of the 500,000 jobs promised under the N-Power Volunteers Programme had already been filled and that those selected would start work on December 1.

Mr Mohammed also explained that an alternative funding of the Oil and Gas Industry Joint Ventures, which had been approved by the Federal Executive Council, would also impact positively on the economy.

”This alternative funding is set to increase the net Federal Government revenue per annum by about two billion dollars, lead to an increase in national production from the current 2.2 million barrels per day to 2.5 million bpd by 2019, reduce Unit Technical Costs from $27.96/Barrel Oil Equivalent (boe) to $18/boe and double the net payments to the Federation Account, from about seven billion dollars to over $14 billion by 2020,” he further explained.

He told the gathering that the funding mechanism would also allow the JV business to be self-fund, restore investor confidence, raise the prospects of higher investment in growth activities by the partners and arrest production decline.

Speaking on the theme of the congress “Strategic Management of Reputation Risk in an Interdependent World,” the minister outlined some of the increasing challenges confronting Public Relations Managers, especially the impact of the Social Media which has democratised the means of gathering and disseminating information, and urged participants to come up with innovative ways to surmount the challenges.

“This theme could not have been more relevant. For those of us in the business of managing government’s image. We hope the outcome of your deliberations will offer us a fresh perspective to better handle this increasingly challenging task.

“I said increasingly challenging because as we strive to project a positive image for the government and keep the citizens informed of government activities, we are constantly being forced to devise innovative ways to ensure a better, two-way communication between the government and the people”.

South West Governors Join Forces To Tackle Economic Recession

south-west-governorsGovernors in the South West Region of Nigeria have joined forces to tackle socio-economic problems confronting the six states and militating against development even as they tackle recession by leveraging on comparative advantages in the zone.

Hosted by the Oyo State Governor, Abiola Ajimobi, other governors of Lagos, Ogun, Ekiti, Osun and Ondo States came together for the first time without recourse to political or ideological differences.

In his address of welcome, Governor Ajimobi, hinted that they intended to come out of the forum with a new pedestal hinged on regional integration as a tool for fighting low economic competitiveness, food and social insecurity despite political affiliations.

Just before deliberations began at the Exco Chambers of the Governor’s Office, he stated clearly that the South West Region was confronted with so much problems that they could no longer act individually but collectively with a common purpose of improving the living standard of the people in a sustainable environment.

At the end of the closed door session, the Ekiti State Governor, Mr Ayodele Fayose, said the six governors had agreed to work as one family despite belonging to different political parties.

In his response, Governor Ibikunle Amosun of Ogun State said the meeting also resolved to leverage on the viability of Lagos to push development in south west.

Governor Ajimobi also called for a collective common policy among the south west governors that would ensure the region was given its rightful place as the economic basket and infrastructure reference point of the country.

Other governors at the meeting were that of Lagos State Mr Akinwumi Ambode, Osun State, Mr Rauf Aregbesola and Governor Dr Olusegun Mimiko of Ondo State who was represented by the Secretary to Ondo State Government Dr Rotimi Adelola.

Governor Mimiko was absent because of a meeting scheduled with President Muhammadu Buhari.

Cross River State Gets Limestone Exploration Licence

Ayade, Cross River, Supreme CourtThe Cross River State government in southern Nigeria has obtained exploration licences for limestone and quarry from the Federal Government.

The licences include quarry lease for granite, exploration licence for limestone, clay and shales as well as reconnaissance permit.

The State government says the development is part of strategies to reposition its economy.

Receiving the licences, during the State Executive Council meeting at the State Executive Chambers, at the Governor’s office in Calabar, the State Governor, Mr Ben Ayade, thanked the Federal Government for the feats.

The Governor also applauded the Commissioner for Solid Minerals Resources, George O’ben-Etchi, for his level of commitment to procuring of the licences.

Governor Ayade maintained that, with the licences and the availability of the limestone in the state, the next step would be sourcing for finance to begin exploration to positively reposition the economy of the state.

Reasoning that Cross River indigenes were not limited by the challenges of the time, the Governor averred that, the state was rather inspired by the challenges to act and dream big.

Limestone is the raw material for the manufacture of quicklime (calcium oxide), slaked lime (calcium hydroxide), cement and mortar.

Pulverised limestone is used as a soil conditioner to neutralise acidic soils, this can help in the area of agriculture that the Nigerian government is exploring to increase its input to the nation’s Gross Domestic Product.

Pulverised limestone is crushed for use as aggregate – the solid base for many roads as well as in asphalt concrete.

Recession: Forum Lists Changes Needed To Reflate Nigeria’s Economy

Pat-UtomiParticipants in a conference held in Abuja, Nigeria’s capital, have identified critical issues they said must be addressed for the nation to come out of current economic recession.

Lack of political will to develop the manufacturing sector of the economy is a major reason the nation is in recession, they said.

The former Coordinator of the National Poverty Eradication Programme (NAPEP), Mr Magnus Kpakol, was one of the participants in the conference that focused on ‘the Role of Monetary Policy in Job Creation’.

It was organised by the Economics and Business Strategies Limited in Abuja.

Lack Of Ability To Produce

According to Mr Kpakol, dearth of foreign exchange and high inflation rate in Nigeria is caused by the lack of ability to produce for export.

Nigeria’s currency, the Naira, has continued to decline against the dollar since the nation’s foreign exchange policies made it difficult for importers to have access to the dollar like they used to.

Most of the items in Nigeria are imported. Poor power supply and other factors had stifled manufacturing, with most companies having to generate their own power. The high cost of production has made locally manufactured goods expensive.

The conference had series of lectures targeted at driving the economy seen as the largest in Africa.

Other discussants, a professor of economics, Pat Utomi, and a former Deputy Governor of the Central Bank of Nigeria, Obadiah Mailafia, emphasised the need to improve involvement in agriculture and manufacturing in the nation that had depended largely on crude oil sales for revenue.

Agriculture was the mainstay of the nation’s economy before the discovery of crude oil.

Meanwhile, the keynote speaker, Anita Campion, stressed the need to have a policy that encourages production, processing and export of agricultural products.

The conference came at a time that unemployment is on the increase and the economy is in recession.

According to the National Bureau of Statistics, Nigeria’s unemployment rate rose from 12.1 per cent in the first quarter of 2016 to 13.3 per cent at the end of the second quarter.

Despite the situation, experts at the conference believe that right economic policies that encourage private investments could turn the situation around.

Nigeria Restates Commitment To Reducing Dependence On Oil

Udoma-UdomaThe Federal Government of Nigeria has reaffirmed its commitment to diversifying the nation’s economy to reduce its dependence on oil.

The Minister of Budget and National Planning, Senator Udo Udoma, made the declaration on Wednesday at the end of the National Economic Summit Group (NESG).

He said the proposed shift from oil resources would help create jobs, reduce poverty and contribute to the nation’s socio economic development.

At the moment, the nation’s economy is in recession.

Mr Udoma explained that the government would achieve this through a synergy with members of the organised private sector.

He added that the government was eager towards diverting from its over dependence on petroleum resources to other sectors of the economy.

As the NESG meeting comes to an end, experts have been deliberating on how to improve the Nigerian economy through the patronage of locally produced goods.

Nigerian-Economic-Summit-Group

One of the participants, Lanre Akinbo, is hopeful that key recommendations identified at the gathering will serve as a starting point for the successful implementation of the Made in Nigeria campaign.

The 22nd edition of the NESG meeting opened on Monday in Abuja, with participants looking to come up with strategies that would spur economic growth through heightened patronage of made in Nigeria goods and services.

The theme for this year’s summit is ‘Made In Nigeria’ and the organisers of the summit say they are looking to re-emphasise the message that the productive capacity of the Nigerian economy has to be developed as much as possible.

Need For Diversification

In his opening address, President Muhammadu Buhari said Nigeria had no other choice at the moment than to diversify its economy to break its reliance on oil.

Buhari, NESG, Economy
President Buhari stresses need for diversification

He was happy with the theme of the summit, saying it “lies at the heart of so many of the efforts we are making to lead us through these troubled times and to lay a firm foundation for the future”.

The President stressed the need to diversify the economy, stating that it was to ensure Nigeria never have to rely on a commodity to survive as a country.

He added that there was apparently no other way to steer Nigeria out of its present economic predicament without building a strong economic foundation on Made-in-Nigeria goods and services.

On the sidelines of the summit, the Vice Chairman of the NESG, Sola David-Borha, told Channels Television that stakeholders would discuss issues affecting Nigeria’s economy and proffer solutions that will reflate the economy and subsequently bring growth.

Mrs David-Borha, who is also the CEO of Stanbic IBTC Holdings, said the group believes that patronising made in Nigeria goods and services will spur the growth of the economy that is already in recession.

Nigerian Economic Summit Opens In Abuja

Sola-David-BorhaThe 22nd edition of the Nigerian Economic Summit Group (NESG) meeting has opened in Abuja, with participants looking to come up with strategies that will spur economic growth through heightened patronage of made in Nigeria goods and services.

The theme for this year’s summit is ‘Made In Nigeria’ and the organisers of the summit say they are looking to re-emphasise the message that the productive capacity of the Nigerian economy has to be developed as much as possible.

On the sidelines of the summit on Monday, the Vice Chairman of the NESG, Sola David-Borha, told Channels Television that stakeholders would discuss issues affecting Nigeria’s economy and proffer solutions that will reflate the economy and subsequently bring growth.

Mrs David-Borha, who is also the CEO of Stanbic IBTC Holdings, said the group believes that patronising made in Nigeria goods and services will spur the growth of the economy that is already in recession.

“Ultimately, it is about creating the right enabling environment so that Nigerians can make their goods and services for export.

“Companies abroad can come to Nigeria and use Nigerian labour and resources to produce goods as well.

“We believe that a focus on made in Nigeria goods will also help to drive efforts and lead to an export-led growth”.

Over the years, the NESG is seen as a foremost platform for public and private sector dialogue that encourages open debate that will enable the Nigerian economy grow. Such discussions have also led to private sector led-growth and responsible private-sector investment.Nigerian-Economic-Summit-Group

Policies that the group has promoted in the past years are on privatisation, opening up of the economy and freeing up of foreign exchange market.

Despite these efforts by the group, the Nigerian economy in the second quarter of this year officially slipped into recession, with a Gross Domestic Product contract of 2.06%.

The summit is coming at a period that the Naira is weak, but Mrs David-Borha believes that the Nigerian economy has progressed over the past 20 years, saying that the rebasing of the economy showed how much the economy had expanded.

“It is a diversified economy. Oil and gas is only 10 per cent.

“Nigerian goods and services are being consumed. We are talking about increasing the added value and about the fact that our ability to do so can be much better which will also help to grow our economy faster,” she said.

The Vice Chairman of the Summit stressed the need to get all cylinders (sectors of the economy) firing.

“You have to continue to repeat and say the right thing. The markets are liquid.

“Ensuring that our markets are liquid, open and transparent, that there is good governance and that the government put in place the infrastructure and put in place enabling environment,” Mrs David-Borha stressed.

She further described the 22nd edition of the summit as another opportunity to ensure that the group reiterates the same massage it has been making in the past 22 years.

After the opening ceremonies on Monday the summit will discuss macroeconomic policies, with focus on fiscal and monetary policy, which the groups stressed was crucial in driving economic growth.

On Tuesday the Summit will have parallel sessions on the ICT, Small and Medium Enterprises, Micro Credit, services and finance.

Economic Recession Is Temporary Test On Transition – Aregbesola

Rauf-Aregbesola-Osun-State-governor-on-floodingThe Governor of Osun State, Mr Rauf Aregbesola, on Sunday assured Nigerians that the current economic recession would soon be over.

Aregbesola said the present stalemate in the nation’s economy remains a temporary test on transition.

The Governor gave the assurance while addressing members of the state Muslim Community who gathered at Osogbo City Stadium to celebrate the Islamic New Year of Hijrah 1438, seen as a period after the migration of Prophet Muhammad from Makkah to Medina.

Mr Aregbesola urged Nigerians to remain patient and embrace the change mantra of President Muhammadu Buhari, saying that the current hardship was being ameliorated.

He attributed the challenges facing the country to bad governance in the past, saying the country had gotten to a stage of putting her predicaments behind.

Too Much Of Sins

Aregbesola, who was represented by the Chief of Staff to the Office of the Governor, Mr Gboyega Oyetola, noted that Prophet Muhammad migrated due to hardship faced in the course of preaching Islam.

He stressed that endurance in the face of hardship was exemplified by Prophet Muhammad, assuring Nigerians that the nation will get over recession.

Governor Aregbesola, who expressed confidence in the ability of President Buhari to bring the much desired change to all facets of the economy, said the APC-led administration would not disappoint Nigerians.

He advised Nigerians to be agents of the change they desired, stressing that “change begins with everyone”.

The Governor, however, called on Muslims to sustain tolerance to other religions by living together in peace, love and unity so as to enhance national growth and development.

Mr Aregbesola also used the occasion to admonish the people on the need to pay their taxes, promising that the tax would be managed effectively for the progress of the state.

Earlier, the guest lecturer, Sheik Muslim Husain Akinola, attributed the economic recession to too much of sins.

Speaking on the theme: “Current Economic Recession in Nigeria: Manmade or God Ordained?, Sheik Akinola, insisted that economic recession was caused by Nigerians.

Quoting copiously from the Quran, Akinola who is the Khalifa (heir), Sheik Abdul Baaqi Muhammad, Islahudeen Missionary, noted that Allah had warned against the current hardship period.

He stated that God had promised hardship for any nation that rejoiced in sin, maintaining that the only remedy was for everybody to repent.

This year’s Hijrah programme was organised by the State Muslim Community in conjunction with the state government.

Economic Recession: Focus Should Be Shifted To Agriculture- Al-Makura

Nasarawa, economic recession, agriculture, Al-MakuraIn a bid to scale through the economic recession in Nigeria, Nasarawa State Governor, Tanko Al-makura, says adequate measures have been taken to completely diversify the economy of the state and shift focus to agriculture.

He disclosed this while answering questions in a media chat organised to commemorate the 20th anniversary of the state.

According to Mr Al-Makura a required attention should be given to agriculture to improve the Internally Generated Revenue in line with the Federal Government’s vision.

Further more, he outlined other steps the government is taking to revive the state’s economy.

He said “Our first step to diversification is to facilitate effective environment for commercialization and commercial activities.

“That is why in the past one year, our concentration has been on building small markets, modern markets in all our local government councils.

“This is because more than 60% of the citizens in Nasarawa state are engaged in buying and selling,” he added.

This followed the commemoration of the state’s 20th anniversary, where the Governor commissioned some projects.

He reassuring citizens that his administration would continue to work hard to fulfill other promises, despite the economic situation in Nigeria.

Economic Recession: Speaker Dogara Asks Nigerians To Be Patient

Dogara, Kano KillingThe Speaker of the House of Representatives in Nigeria, Mr Yakubu Dogara, has asked citizens to be patient and have unwavering confidence in the future of the nation’s economy which is in recession.

He reassured them that the Federal Government would find solutions to the current economic recession.

Nigeria’s economy had officially slipped into recession few weeks, after a report by the National Bureau of Statistics showed that the nation’s Gross Domestic Product contracted.

According to the report, the decline of 2.06% in the second quarter of 2016 has caused the Naira to get weaker while lower oil prices dragged the oil sector down.

The output shrunk by 0.36 in the first quarter.

During the quarter, nominal GDP was 2.73% higher at 23.48 million Naira at basic prices.

This growth was lower than the rate recorded in the second quarter of 2015 by 2.44% points.

Mr Dogara made the call in Abeokuta, the Ogun State capital on Friday after a meeting with the Ogun State Governor, Mr Ibikunle Amosun, at the Government House in the state’s capital.

Reacting to the state of emergency on the economy by the Nigeria Governors Forum, the Speaker said that the forum was entitled to its opinion.

He told reporters that the members of the House of Representatives would soon come out with their own views on the economy.

Few days ago, the President of the Senate and the leader of the National Assembly, Senator Bukola Saraki, had assured Nigerians that the upper legislative chamber would continue to work towards ensuring that things get better for Nigerians.

Senator Bukola Saraki made the promise while addressing reporters after he joined President Muhammadu Buhari at the Presidential Villa, in Abuja, to observe Jumat service on September 9.

“We Will Overcome”

He appealed to Nigerians to bear with the administration, as it strives to bring the country out of the current economic recession.

“We will continue to appeal to Nigerians to bear. We know we are all going through difficult times.

“In every country, people go through challenges. But with prayers and support, we will overcome it.

“The most important thing is for us to stay together and give each other support and continue to believe in this great country,” he stated

Ayade Sees Brighter Future Despite Economic Recession

Cross River, Ben Ayade on Economic recession The Cross River State Governor, Ben Ayade, says he sees a brighter future for Nigeria despite the current recession.

Making comments about the present economic situation, Governor Ayade stressed that this it was a time for Nigerians to think and go beyond the scope of their normal lifestyle.

He urged Nigerians to focus on reconstructing a new economy, new lifestyle, new consumption pattern that could take Nigeria out of the woods.

The Governor added that, “at a time such as this, only quality ideas can survive a society that is challenged and threatened by economic downturn”.

Nigeria’s economy had glided into recession, with a report of the the National Bureau of Statistics showing that Nigeria’s Gross Domestic Product (GDP) has contracted by 2.06% in the second quarter of 2016

According to the report by the agency, the decline has caused the Naira to get weaker while lower oil prices dragged the oil sector down.

The output shrunk by 0.36 in the first quarter.

 

Economy: Presidency Says It Is Trying To Fix Errors Of Past Administration

garba Shehu, London Telegraph, Boko Haram,The presidency in Nigeria says it will not close its eyes to what it calls the poor performance of the past administration so as not to repeat their mistakes.

A statement by a spokesman for President Muhammadu Buhari, Mr Garuba Shehu, said the economy was broken by the Goodluck Jonathan administration and that Nigerians must bear the pains of fixing it.

The Friday’s statement is coming few days after it became official that the oil-rich nation’s economy has glided into recession.

According to Mr Shehu, the past administration engaged in mismanagement and corruption rather than investing in infrastructure development like seaports, airports, power plants, railways roads and housing, when oil price was $140 per barrel.

He also observed that no savings were made by the past administration unlike other countries like Qatar, Saudi Arabia and Norway.

Other factors which he named that had contributed to the nature of the economy, include heavy borrowing by the past administration, issues he stressed that past governors of the Central Bank warned the government about but were ignored.

He further stated that the past administration could not investigate the military spending, the federal payroll which had over 40,000 ghost workers, wasteful expenses like first class travel and private jets for official trips.

The President’s spokesman said the present administration was focusing on job creation using agriculture, solid minerals and manufacturing which were abandoned when oil price was $140 per barrel.

“To compound the problem, the previous government was borrowing heavily and owed contractors, and international oil companies. When this government took over we had accumulated debt back to the level it was before the Paris Club Debt Forgiveness,” the statement further read.

Mr Shehu said: “Now that the oil has fallen as low as US$28 per barrel, it is very difficult to do what is needed but they must be done to save Nigeria. There is no other way if we want to be honest”.

He claimed that while terrorism and social unrest were growing, real development was lacking.

The spokesman for the President further promised that Nigeria would return to growth in a sustainable manner and expressed optimism that the positive impact of the work of the Buhari administration would soon begin to show.

Read full statement below

WHAT IS PRESIDENT BUHARI DOING WITH THE ECONOMY?
Garba Shehu, Senior Special Assistant to the President (Media and Publicity)

LET me start by asking an important question: who wants to kill racy introspection?

There is a cacophony of voices telling the Muhammadu Buhari administration to close its eyes to the past; that given the enormous tasks that lie ahead, history and its consequences for our nation should be the least of the government’s preoccupation at this juncture.

I disagree. Let us keep a fiery memory of the past so that we don’t repeat its mistakes. Look back, look ahead. The future must of necessity be built on the foundations of the past.

The Conservative Party took power in Britain six years ago from Labour. Check the British press, they are talking about Labour 24/7, is anyone complaining?
Japheth Omojuwa, one of Nigeria’s top three influencers seemed tasked in his patience reacting to calls that we must stop talking about the immediate past administration in this country. “People are still talking about who ran governments in 1865 you want us to forget those who left government last year? (Expletive)”

Music icon, Fela Anikulapo Kuti, who many agree was a philosopher disguised as Afro-musician taught in one of his songs that without knowing where you are coming from, you won’t know where you are going. Wise men say that the empty can doesn’t disappear by simply kicking it down the road.

To avoid repeating the past mistakes, Nigerians must come to terms with what went wrong with the past, how bad were things, what was done wrongly, what the past government should have done, before we come to what needs to be done to right those wrongs. Believe me, episodes from the Jonathan era can fill books, and other possibilities such as courtroom drama thriller.

Against this backdrop, I sought to hear our erudite Finance Minister Kemi Adeosun on where we are coming from, vis-a-vis the administration’s chosen path to recovery and accelerated growth. What is the administration doing to revitalize the economy? She spoke at length on the many measures being put in place, many of which are not glamorous. They of necessity come with pain. Why should Nigerians be asked to endure pains? Why should they be asked to make adjustments?

The simple explanation is that the economy was broken, and just as they do the broken leg, you must bear the pain of fixing it. The current situation was caused by years of mismanagement and corruption.

As explained by President Buhari again and again, trumpeted by Madam Adeosun and other senior officials, we solely relied on oil, the price of which was as high as US$140 per barrel. Government simply reticulated oil revenue through personal spending by corrupt leaders, wasteful expenses and salaries. This was done rather than investing in what would grow the economy. Economies grow due to capital investment in assets like seaports, airports, power plants, railways, roads and housing. Nigeria has not recorded a single major infrastructural project in the last 10 years. In short the money was mismanaged.

In addition to failing to spend money on what was needed, no savings were made by Government unlike other countries like Qatar, Saudi Arabia and Norway.
To compound the problem, the previous government was borrowing heavily and owed contractors, and international oil companies. When this government took over we had accumulated debt back to the level it was before the Paris Club Debt Forgiveness.

All these factors were building up to Nigeria heading for a major crisis if the price of oil fell. Nigeria did not have fiscal buffers to withstand an oil shock.
The oil shock should and could have been foreseen. These are matters that both the Emir of Kano, Muhammadu Sanusi II and Professor Chukwuma Soludo, both of them eminent former Central Bank Governors had occasions to warn the government of the day about, but they were clobbered. The dire warning was written all over the wall, but they were ignored by Nigeria’s economic managers.
What should they have done?

They should have had the courage and vision to do as the present administration is doing through the Economic Team, the Ministry of Finance under Madam Adeosun and the various agencies of the state to envision a better future by first of all fighting corruption. Look at what a civilian administration is today doing to the military, investigating their finance and accounts that the military could not do to themselves.

See what the current administration is doing sanitize the huge salary bill by eliminating payroll fraud. So far, the federal payroll has been rid of about 40,000 ghost workers. More than eight billion Naira stolen monthly has been saved.
We are also saving on wasteful expenses like First Class Travel and Private jets for official trips.

The federal government is not limiting the reforms to the centre but forcing State Governments to reform their spending and build savings or investments.
Government is also increasing spending on capital projects especially on infrastructure needed to make Nigerian businesses competitive and create jobs. The administration is at the same time blocking leakages that allowed government revenues to be siphoned into private hands.

Currently, there is focus on key sectors (apart from oil) that can create jobs and or generate revenue such as Agriculture, Solid Minerals and Manufacturing. If these things had been done when the oil price was as high as US$140 per barrel, Nigeria would not be in the current predicament. We would not be suffering now if we had no cash reserves but we had regular supply of power, a good rail system, good roads and good housing.

Now that the oil has fallen as low as US$28 per barrel, it is very difficult to do what is needed but they must be done to save Nigeria. There is no other way if we want to be honest.