Opinion: Nigeria’s Economic Recession Caused By Global Oil Price Drop..Stop Blaming Buhari & The APC


how to end recession in nigeria

October 4th, 2016  – Oil Revenue Can’t Make Nigeria Rich. See 5 Ways To End Recession

Opinion: Nigeria’s Economic Recession Caused By Global Oil Price Drop..Stop Blaming Buhari & The APC

Looking at how the APC is going about the Nigeria economy because of the recession arising as a result of the global oil price drop,  there is urgent need for critical approach to revive the Nigerian economy in order to enable Nigeria grow enviable foreign reserve that will place Nigeria among the top 20 economy of the world within the next 5 years.

Oil Is Gone

Let us not deceive ourselves as oil cannot make us great because we have misused the opportunity when we had the oil boom so let us forget about oil because the west has started looking for other sources of energy outside oil of which it has already started yielding results. By the next 5 yrs oil will be next to nothing as there will be other alternative sources of energy even cheaper than oil.

We must diversify the economy by going into mechanized agriculture immediately which the Federal government must aggressively get involved by owning Federal Farm settlements across all the states in Nigeria that will go into massive mechanised farming that will produce economic cash crops which they will process thereby providing the needed raw materials for our local industries as well as for export and even for our local consumption thereby saving us a lot of foreign exchange.

It is only Government that has the right funding to go into this type of massive agriculture for now.The private sector will equally get involved when the Government lead the way.
Diversifying the economy should not be a mere propaganda as usual by past Nigeria governments because the past governments in Nigeria has always talked about diversifying our economy only to end up doing nothing and continue to rely on oil.

Our state governments and local governments will equally follow suite.
Right now both our states and local governments are idle.
Federal Government will need to invest in massive infrastructure especially on power generation so that Nigeria will become an industrialised nation.

Also now is the time for the Federal Government to recognize the informal sector.
Government must at this point in time allow foreign inflows of foreign exchange from all sectors of the economy into Nigeria as a way of boosting our economy.

Dislodge all the obstacle obstructing our banks from receiving foreign inflows as that will help this economy get the much needed foreign exchange especially at this time. Our banks are already dying because their licence is under utilised coupled with massive unpaid loans due to high bank interest loans which the borrowers are unable to pay.

The Central bank of Nigeria will need to do something urgent about bank high interest rate and bring down the interest rate on lending because right now the interest rate on lending is so high that it is almost impossible for borrowers to redeem the loan.

The high bank interest rate makes the Lender equally guilty as a criminal just like the borrower who is unable to redeem his/her bank loan because of the high interest rate. This also has dealt a devastating blow to our banking sector and the economy in general.

Cases of Delinquent bank loan debtors and Non performing Loans must be reviewed urgently and a low interest rate regime instituted urgently by the central bank of Nigeria so that most bank loan debtors can be able to pay their debts to save our financial system from collapse.

Furthermore the Government must encourage startups and establish an agency for startups so that we can produce global brands in tech companies which will equally create massive jobs for our unemployed and grow our economy as well.

The Nigeria music industry and Nollywood must be incorporated into our foreign policy and must be another engine for foreign exchange generation for Nigeria.
In view of the economic recession presently raising tax is a wrong approach as it will trigger inflation just as we are witnessing at the moment.

Government will find a way to reduce tax urgently before our Naira is gone because the Naira is Nigeria not even the National flag(the Green white Green) so we must protect the Naira at all cost.

Nigeria at this time need to be a tax haven in order for us to overcome this economic recession quickly and reclaim our position as the giant of Africa.

Tax haven countries offer foreign investors low tax rates and other tax features designed to attract investment and thereby stimulate economic activity.

Tax haven governments appear to be adequately funded: their average 25 percent ratio of government to GDP exceeds the 20 percent ratio for the world as a whole.
At this point Nigeria needs other countries black money which will act as a great Foreign Investment to Nigeria.

Nigeria do not need to fret about (OECD)Organisation for Economic Co-operation and Development for being a tax heaven because we will still comply with OECD five criteria even as a tax heaven.

With all these measures put in place, the economy will boom and crime will decrease to bear minimum and there will be stability in the polity.

Let me use this opportunity to urge all Nigerians to be patient with President Muhammadu Buhari and the APC in their task to rebuild Nigeria as they will definitely get Nigeria out of this recession.

[Article By Boniface Ogada]