The former Central Bank of Nigeria (CBN) governor, Prof Chukwuma Soludo, has revealed how Nigeria’s economy got into recession. He attributed the economic woes facing Nigeria to the wrong choice of economic policies by former president, Goodluck Jonathan.

Soludo disclosed this while speaking at an international conference organised by the Department of Business Administration of the Nnamdi Azikiwe University (UNIZIK) in Awka, Anambra State. According to Soludo, the recession the country was facing was as a result of what he termed “bad habit of borrowing” at a period the country was in boom.

He blamed the past administration for plunging the economy into a glitch, saying the government did not act on time to save the situation. Soludo also criticised the Treasury Single Account (TSA) policy, which, he said, stifled the economy further because it channelled public sector funds to the CBN.

In his words:

“Huge spending by government was one of the ways of solving the economic problem, but two wrong steps by the current government ruined that opportunity. They brought in the TSA and channelled funds into one account that did not allow spending. They also fixed the price of foreign exchange. These are things you do not do when a country is in economic crisis.”

He said the recession happened because the Goodluck Jonathan administration failed to save earnings from crude oil sale when there was unprecedented boom in oil prices.

“Poor ideas transcended over superior ideas, and we went into recession which was slightly avoidable. That is why academics must be alive to their responsibility of nudging us to reality. If you borrow at a time of boom, what will you do in a time of lack? Even my grandmother in the village knows this.

“At the same time, when we had boom, we had unprecedented unemployment. The problem with Nigeria’s policymakers is that once oil goes up, we take it that it will remain so, and we continue to spend. But once there is a shock and oil prices go down, we just think it is temporary and we start borrowing. Nigeria can be fixed, and what it takes to fix Nigeria is not rocket science.”

He also called for fiscal federalism to help the states and local governments live beyond “running to the centre for their sustainability”.



more @ http://www.exlinklodge.com/2017/06/how-former-president-goodluck-jonathan.html

cc lalasticlala mynd44 missyb3

Na so dem go complain until kingdom come. Even if BUBU rules for 30 years, they would still find a reason to lay blame on someone or something.
If it was GEJ shuttling in and out of Naija for health check sending greetings to Nigerians through Mama peace like Bubu is doing now, I am sure Buhari and his goons would have used it against him. I guess the next leaders would say hospitals in Nigeria can not be revived because Bubu spent the money meant to uograde them in treating his ears abroad.

In the voice of descendants of Cain and Children of Hatred -- Soludo is a Yoruba

Who is this thief that is talking,after all the money you stole from CBN in PDP government

.

Until they tell Buhari the truth Zombies won't get out this mess He Created

Na today!

We need leaders with big ideas man. All these man dem too shallow!

Nonsense! Did GEJ also lead Nigeria into recession in 1984?

Keep making excuses for excesses. Is it a coincidence that PMB has led us into a recession twice?

Prof, Jona also led Nigeria into recession back in 1984.

Amberon11:
Nonsense! Did GEJ also lead Nigeria into recession in 1984?

Keep making excuses for excesses. Is it a coincidence that PMB has led us into a recession twice?

May you live long.I refuse to be a zombie.

Super1Star:
In the voice of descendants of Cain and Children of Hatred -- Soludo is a Yoruba

I wouldn't be surprised if they started insulting him.

Whether anyone agrees out now, I put the blame on what we are facing today squarely on Jonathan who totally mismanaged our wealth at a period when we had unprecedented earnings.

Amberon11:
Nonsense! Did GEJ also lead Nigeria into recession in 1984?

Keep making excuses for excesses. Is it a coincidence that PMB has led us into a recession twice?

GEJ is a criminal

He also led us to recession 1984

Danielmoore:



GEJ is a criminal

Quite possible. But it's not like Buhari did any better, he actually did worst.