Business
Recession: Economist Tasks FG On Ingenious Policies
An economist, Dr
Aminu Usman, has advised the Federal Government to come up with ingenious policies to help the country out of the economic recession.
Usman, a lecturer at the Department of Economics, Kaduna State University gave the advice in Abuja yesterday in an interview with newsmen.
The lecturer advised the government to come up with practical policies out of the ordinary to jump start the economy.
“One way to do that is to start paying local contractors and awarding new contracts for rural infrastructure.
“Infrastructure initiatives like the defunct Directorate of Food, Roads and Rural Infrastructure (DFFRI) in order to create market for farm products and the manufactured goods,’’ he said.
According to him, paying foreign contractors only put pressure on Foreign Exchange (FX).
Usman, however, said the recent figures released by the National Bureau of Statistics (NBS) showed that the economy had sunk into deeper recession.
He said that it also indicated that the economy had some structural deficiencies beyond the crash in the production and price of crude oil.
“Oil price crash has been with us to adjust and redirect the economy on the path of growth.
“Instead, the economy is further sliding into deeper crisis indicating structural weaknesses, requiring urgent measures to address beyond what the government is currently doing.
“Inflation and unemployment rates are running wild at 17.1 percent and 13. 3 percent respectively,’’ he said.
The don said that the figures confirmed the deep crisis the economy was going through.
He said that inflation had devalued people’s income and lives while unemployment and cash squeeze lower purchasing power causing the closure of many Small Medium Enterprises (SMEs) and further worsening the unemployment situation.
By economic principles, an economy is said to be in recession when these contractions are observed at least over two quarters.
Reports also say that Nigeria’s Gross Domestic Product (GDP) in real terms declined by -2.06 per cent in second quarter of 2016, according to NBS.
NBS also stated the figure was lower by 1.70 per cent points from the negative growth rate of 0.36 per cent recorded in the preceding quarter.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.