'Nigeria economy in great distress'

'Nigeria economy in great distress'

...experts tasks FG, States on urgent economy recovery

The Director General of West Africa Institute for Financial and Economic Management (WAIFEM), Prof. Akpan Ekpo said that the relevant macroeconomic and social indices have shown that Nigerian economy is in serious distress and need urgent recovery.

He raised this alarm over the weekend at the inaugural lecture of the Centre for Financial Journalism, with the theme: “Steering Nigeria Out of Economic Turbulence: Policy Choices for Buhari’s Administration,” in Lagos.

He argued that “the high rates of unemployment combined with reduced output in two quarters of 2015 suggest an economy in the sphere of stagflation which is a prelude to recession.”

According to him, the structure of growth in the nation indicates an economy with positive growth trajectories but no development.

Ekpo, who argued that the Nigeria economy is on the tip of recession and with no strategy to fast track the required development .

He said President Muhammed Buhari’s administration lack available blue-print but rather based its strategy on the party’s manifesto, pronouncement by government as well as the draft 2016 budget.

Meanwhile, Prof. Ekpo noted that the nation’s economy was at the verge of recession because the global environment such as the slow growth in China and the sluggish recovery in Europe further worsens the situation, while noting that certain policies could cushion the effect of such a recession.

The DG, however admitted that the present administration have several policy choices both in short and medium terms, which include massive investment in hard infrastructure, employment generation, investment in housing construction, changing the structure of the economy, provision of social services, build strong institution, growing the real sector and aggressive monetary and fiscal policy.

But, he hinted the need for leadership, policy-makers and technocrats to search and work towards inclusive development within the context of a developmental state economic blue print.

He emphasised that sustained growth even if it is inclusive is only a necessary condition for development.

According to him, anything besides working towards inclusive development would be a return to the status quo implying the continuation of the development of underdevelopment, increased poverty, backwardness and misery.

Ekpo stressed that the 36 state economies must play their role in putting the Nigerian economy on the path of growth and development.

“States must also design strategies and programmes that would attract investors as well as generate employment. Nigerian states should operate under competitive federalism so as to help the wide economy to grow and develop,” he suggested.