SAN FRANCISCO, September 19, (THEWILL) – Vice President Yemi Osinbajo on Monday declared that Nigeria’s current economic recession is as a result of the activities of vandals, unrest and militancy in the Niger Delta region.
Speaking at the Presidential Quarterly Business Forum, of the private sector and the Economic Management Team (EMT), at the State House, Abuja, he revealed that the bombing of oil and power installations in the region had more adverse impact on the 2016 Budget and the economy than the low prices of oil in the international market.
According to him, the 2016 Budget had properly anticipated the low oil price, but didn’t expect the drop in oil production caused by the bombings revealing that the budgetary expenditure was predicated on a daily crude oil production of 2.2 million barrels per daily but producing less than 1.1 million barrels per day due to the activities of the militants.
“Perhaps it is important for us to understand the nature of this recession in which we have found ourselves,” he said.
“In discussing this issue of recession there is tendency for people to generalise, a lot depends on what sort of recession and how we got here.
“If we did not have vernalisation in the Niger Delta as we are currently suffering, we will not have this recession today, moreover, in looking at the solutions, we should try to focus on the type of problem we have and what instigated it, then we can begin to come up with better solutions.”
“We are doing a whole lot by interfacing with the private sector because we realise their role in the economy, if the Dangote refinery comes on stream, it will help us overcome some of those challenges, like the sub-sea gas pipelines, it will take care of vandalisation.
“But I think the more important thing is how to clean up the mess in the power sector, especially infrastructure, in the short term, we will try to bring up power to an appreciable level to help the manufacturing sector.”
Members of the organised private sector listed 13 challenges seen as bedevilling the progress of the Nigerian economy.
These includes lack of access to finance; difficulty in securing foreign exchange; high interest rates and high energy cost; transport and infrastructural deficit; weak export support; inconsistent government policies, and absence of clear investment policies.
Story by David Oputah
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