A former governor of the Central Bank of Nigeria (CBN), 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.

He said, “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.

He said, “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”.

Cc; lalasticlala mynd44

https://www.today.ng/business/economy/301701/jonathans-economic-policies-caused-nigerias-recession-soludo

Ok

What's the crime of Jonathan?
Even after so many years we are still blaming this innocent man for sled inflicted woes?
Pathetic!

Jonathan...


A man with Ph.D who hasn't justified even his WAEC.




Very dull man.

Lols our brothers will come here with gun blaizing shouting AFONJA, lols soludo is your own and i think he knows better.

I doubt soludo's qualifications, even if he caused the recession does that mean we should remain there ?
He handed over a robust economy to that Mallam and he destroyed it, now he's blaming Jonathan...

The Biafran heat is on. HausaFulaniKanuris-Muslims are digging every information from anyone in SS and SE to discredit GEJ and sow discord in the South.

I love this DRAMA...... this is how Buhari wants it.

Okay we know he caused the recession


What is buhari doing to get us out of the recession

Blame game still on

OZAOEKPE:
I doubt soludo's qualifications, even if he caused the recession does that mean we should remain there ?
He handed over a robust economy to that Mallam and he destroyed it, now he's blaming Jonathan...

please stop this nonsense. You agreed that he caused recession but still leave a robust economy, hahaha! Even Iya alagbo can never be so low like this. Also it will take take some times for economy to recover.

kristonium:
What's the crime of Jonathan?
Even after so many years we are still blaming this innocent man for sled inflicted woes?
Pathetic!

this is what I have be saying for long, that when we have oil boom, your ineffectual buffoon were still borrowing with incredible unemployment.
I just hate that man

we heard enough of this,buhari should implement policies that will bring us out nah .

hakeem4:
Okay we know he caused the recession


What is buhari doing to get us out of the recession

he is doing his best by encouraging local production and reducing importation.
It would have be worst if your ineffectual buffoon had continue his ineffectual buffoonism

Lanretoye:
we heard enough of this,buhari should implement policies that will bring us out nah .

with all the plans on ground, by 2018, we will stop importing rice,fuel etc