Why Nigeria Went Into Recession For The First Time Since 25 Years


In the early 80s, the largest economy in the whole of Africa stood amongst the world’s strongest force with a reserve of almost 450 billion dollars, today Nigeria stands with less than 31 billion dollars reserve. (Wonder if there is any nation with lower reserves today)

Back in the 80s, countries like China, Malaysia, Indonesia Turkey, had just about 47, 43, 40, 35 billion dollars reserve respectively, but today China alone has a GDP of over 560 billion dollars

The lists of countries with low GDP in the 80s are now very rich with tons of billions of reserves, while the rich once in the 80s have remained richer, only Nigeria kept depreciating in reservoir by not saving at all, rather eating up the reserves saved by the Awolowo’s, Azzikiwe’s and their era, which landed the nation in recession since 25 years with a reserve of just 30 billion dollars as at the date of this publication.

Depending on only Oil as it major means of developing the country, the government of Nigeria has ate the soul of the country and mismanaged revenue and natural resources, with debt rate rising above sixty per cent (60%), leaving the nation with a bag of unsolved economical questions; ranging from whether the natural resources is either a blessing or a curse?

Read: The Gutless Nigerian Youth at the Mercy of the Aged and Myopic Driven Leaders.

While delivering a keynote speech at the Just concluded Nigerian Association of Petroleum Explorationists (NAPE) conference at the Eko hotel on Tuesday, the former governor of Anambra State, Peter Obi, said that the miss management of resources led to recession and that Nigeria is the only nation without a saving culture; even so, the constitution does not make provision for saving.

“Our reservoir is LOW.”

“Nigeria is the only country were every revenue is sheared among the three terse of Government (The Executive, The Legislature and The Judiciary)”

“The constitution did not make provision for saving, that constitution should be re-written” said Peter Obi

The former director of Fidelity bank also pointed out some of the reason for which the nation has remained in perpetual downturn, citing that Nigeria depend on only oil and most of the political appointments were giving on favours and not merit

“90% of the economy lies on oil and that is the reason for which we must save”

“Many of the ministers are not qualified to be there, they do not understand the sector or office they occupy, and you should stop praising them when you see them rather let them know their faults, tell them their mistakes; they may not know that what they are doing is wrong, you who are professionals should point it out to them.”

Obi cited power sector as an example, stating that no other nation talks about megawatts in this age and generation but Nigeria

“Just put on the light for us, why is it so hard?”

Okwute as he is mostly referred stressed that debt revenue rate is 60% and rising, where most states in Nigeria are bankrupted and the federal government which is aiding them is also almost bankrupted.

How does the Nation come out of the future disaster?

The former governor also took time to offer his expert advice in liberating the Nation of the disaster which awaits it if nothing is done

“We have to take the hard decision to save for tomorrow, savings is critical to drive the economy of today.”

“If Nigeria saves just 10% of its revenue, ‘let’s say we exclude the 10 from what is stolen’, and invest 6% of the 10% which is supposed to be saved, by the next 25 years, Nigeria would have saved up a GDP of 300 billion dollars, this is just on the 10% and not the invested sum”
Obi added

The former Governor of Anambra state revealed that ‘if a man has not created wealth, he cannot manage one,’ pointing that many Nigeria ministers/politicians do not have the interest of the nation at heart, but their personal wellbeing. Hence, the rippling effect of the constant depravity of democratic dividends

“Managing public fund should be selfless”

Speaking on decentralization of power, Obi further reminded the geological expliorationists that a 100 million Naira is awarded to each local government on a monthly bases for development programs. He also pointed out that FG should empower states to issue license for mining in a local territory, and some licensing should not have anything to do with the fedreral government.

“How many of you have gone to find out what the 100 million Naira is used for in your local government on a monthly bases?”

“Politics in Nigeria should be transitional and not transaction, that’s the reason for the bottle neck at almost every perastatal”

Obi while ending his speech, invited the youth and those professionals who have in their various endeavors, made a good lives for themselves to join politics at all levels to better the country

“I therefore employ you to join politics, lend your voice and service in saving our nation, the nation need your expertise, don’t sit back as oil gurus and pro’s in your various works of life and let some novice take offices they know nothing about and ruin the growth and revenue of the nation.”

The Former Governor said that the nation is still crawling out of recession at a GDP growth of 1.4 from 0.72 in the second quater of 2017.

“This growth is 2.04 per cent higher than the rate recorded in the corresponding quarter of 2016 ( –1.49 per cent) and higher by 1.46 per cent points from rate recorded in the preceding quarter, (revised to –0.91 per cent from –0.52 per cent). Quarter on quarter, real GDP growth was 3.23 per cent,” the NBS said in the Q2 2017 GDP report.

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2 thoughts on “Why Nigeria Went Into Recession For The First Time Since 25 Years

  1. Pingback: Delta State Governor Okowa Is Not A Leader, He’s After Himself And His Family – Harrysong | Smart9ja News/Entertainment

  2. Pingback: Luxury Flits Of Cars, Alcohol Industries To Attract Special Taxes | Smart9ja News/Entertainment

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