Nigeria’s economic challenge is surmountable – Adeosun
The Minister of Finance, Mrs. Kemi Adeosun
The Minister for Finance, Mrs. Kemi Adeosun, says Nigeria will overcome its economic challenges without taking loan facility from the International Monetary Fund (IMF).
In a statement issued in Abuja on Saturday, Adeosun made the observation at the ongoing Spring Meetings of the IMF-World Bank in Washington DC in response to why the government has refused to apply for IMF loans.
The statement quoted the minister as saying that Nigeria was adapting to its new realities by implementing fiscal policies to steer the country back on track for stable growth with a diversified economy.
Signed by the Special Adviser to the Minister on Media, Mr. Festus Akanbi, the statement said the minister expressed optimism that sound fiscal policies and investments would boost Nigeria’s economy by 2017.
Adeosun insisted that what the country was passing through was surmountable because government was already applying a “cocktail of measures to address the problem.
“Nigeria is not sick. The real vulnerability in the Nigerian economy is over-dependence on a single source of revenue; oil.
“We have resolved to build resilience into the country’s economy to hedge against future oil shocks. This is because dependence on oil brings about vulnerability and laziness.
“So, we are doing a combination of things to diversify our economy, with revenue mobilisation to enable sufficient investment in developing the non-oil sectors.
“We have great opportunities to reset the Nigerian economy and ensure that as we go forward, growth will be in a sustainable manner so that we won’t be vulnerable to oil price fluctuations.’’
Adeosun said with a truly diversified economy the government would have enabled opportunities for wealth creation that would have flown down to every Nigerian.
“The compelling business case in Nigeria is that the fundamentals remain very strong, a teaming, young growing population, rich in resources and with a government determined to finally get it right.
“The great thing is that long term investors recognise this and understand the difference between short term and long term issues and the case for Nigeria persuades one to plan for the longer term opportunities,’’ the statement quoted her as saying.
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2 Comments
The minister’s assertion that over reliance on oil as the single source of revenue is the sole reason why Nigerian economy has hit rock bottom is both myopic and naive. The Nigerian problem is the Nigerian question, the Nigerian system is rigged to fail, and no amount of campaign or slogan on “economy diversification” can work until Nigeria is restructured along regional lines, and greater autonomy giving to each region to develop its own “Marshall Plan” in line with its unique regional interest and aspiration. Mrs. Kemi Adeosun believes investors will eventually come in droves because the nation has “young growing population, rich resources, and a government determined to finally get it right,” its a laughable assumption and shallow thinking. Here are the reasons why Nigeria cannot attract investors, Boko Haram wants full fledged sharia in North-East and North-West, South-South and South-East wants to opt of Nigeria for an independent Biafra, North-Central is plagued by sectarian, ethnic and religious conflict and besieged by Fulani herdsmen terrorist terrorizing the region, South-West is plagued with internal political conflict and division and their politicians in the Federal government are busy looting the nation treasury, and the so-called unemployed “area-boys” in South-West are extorting money from business owners, Lagos state government make sure it demolishes business worth trillions because the owners are foreign and extorts high taxes, these are the reasons why Nigeria cannot diversify or attract investment in Nigeria, because the country is besieged with so much conflict that no sensible person will risk his wealth or life to invest in Nigeria.
So, we argue that things can be done better. Nigerian structure is rigged to fail, that is the first truth that must be told. If the foundation is right, then the structure can stand and built according to any design you want it. Recommendations has been made over and over again, and the consistent verdict is that is that the Country must be partitioned along regional governments that allows for greater regional autonomy, but Federal oversight. What that means is the if Muslim dominated North-East or North-West wants to borrow money from Islamic Bank, they should have the freedom to do so without their Southern regions opposing it, and if the South-East and South-South wants to have an economic tie with the State of Israel, the Northern Muslim cannot stop it because it does not like Israel, that way each region can pursue its economic interest without hindrance or interference by any region or from the Federal government. Internal security will be the domain of each region, while the Federal government will concentrate its energy on external threats, and by the invitation of regional government assist in internal security if need be. Without guaranteed internal security and order, no sensible will risk his life or resources to invest in a nation plagued with constant internal strife, when peace is the order of the day, diversification becomes possible, and investors will be knocking at your door, instead of the current situation where President Buhari is currently occupying the first position and has breaking world record in “Marathon Race” and the most traveled President in the world both in peacetime or wartime. Yes, I believe the window of “Change” is still open and possible but not by electing Buhari as the President, but perhaps for Buhari to help make the inevitable become possible, and that is, if he has the “Political Will” to restructure Nigeria along Regional System of Governments, and help save Nigeria from eminent collapse if indeed he loves Nigeria.
I agree totally to your submission, however, I believe each region should go their separate ways. The North and the South-West is morbidly afraid to live independently, because they lack the natural ability to sustain their own lives or survives without the help and assistance of Biafrans. Even if there is no oil, nether Yoruba or Hausa has what it takes to sustain themselves, going to school and learning ABCD does not mean you have the creativity and gift to live as a society, ONLY Biafrans can boast of surviving on their own, and Biafrans are prideful of that fact.
We will review and take appropriate action.