Vice-President Yemi Osinbajo, yesterday, said “unbridled corruption’ by the immediate past administration caused recession in the country because the Peoples Democratic Party (PDP) government failed to create buffers that would have provided the needed stimulus for economic recovery during the turbulent period of recess.

Osinbajo, who stated this in his opening remarks at the Legislative Framework for Economic Recovery and Sustainable Development forum organised by the House of Representatives’ ad hoc Tactical Committee on Economic Recession in Abuja, vowed that Nigeria must never walk that way again.

In a piece titled: “The Nigerian recession: We must never walk this way again,” the vice-president said: “I don’t want to keep repeating some of the incredible things that happened a few weeks before the last elections; how large sums of money, a N100 billion in cash ostensibly for security. Another $289 million in cash was paid out in the same period. No country can survive that kind of unbridled waste and corruption. We must never forget that corruption is perhaps, the most outrageous cause of our economic decline.

“Aside from barefaced stealing or waste of resources, the inflation of contracts and other procurements ensures that the cost of infrastructure necessary for development will always be unaffordable. So, if what we should spend on building a 200 kilometre road ends up being spent on a 20 kilometre road, there is no way we are going to make any progress and there is no way we won’t end up in some kind of economic decline or the other.”

He also blamed the delay in the passage of budgets as a contributory factor in the deepening of the recession, warning that the nation cannot afford to have a strained relationship between the two.

“The truth is that no developing economy can afford the luxury of prolonged executive/legislative wrangling over the budget. Developed economies with strong and independent private sectors may be able to cope, but Nigeria simply cannot.

“Budgetary delay in a situation of national economic emergency, and the hardship encountered by so many, is simply wrong and unacceptable. Neither the executive nor the legislature can excuse itself. It is wrong for us to hold up the budget for that long. The delays of course, will ensure that money will not flow into the economy, and that capital projects will not be done.”

On why Nigeria should never experience it again, he said: “There are two reasons why; the first is so as to ensure that never again, do we experience the horrors and deprivations of a recession, the second is that we cannot afford another recession, not now or in the future,”

Giving a background to the recession, Osinbajo explained that three reasons accounted for it. He said: “One, we were running an unstable economic structure. Oil alone contributed 70 per cent of budgetary revenues and 90 per cent, perhaps more than that, of our foreign exchange revenues. The second weakness in our economic structure is that it had mainly been consumption driven with a high propensity to import. Worse still, we were importing food, food that we could grow. Our unsustainable food importation bill at some point was over N1 trilion, it was particularly damning for the economy as foreign exchange revenues dried up.

“Of course, we all know that there was very little by the way of investment in infrastructure and capital projects. In fact in 2015, capital spend was less than 11 per cent. So, there was very little to show for where this money went.

“Today, we can say that despite the 60 per cent or even more reduction in revenues from oil, we are bailing out the states and our capital spend in 2016 was close to N1.3 trillion, the highest yet in the country’s history. So, with more prudent management, it is possible to do more with far less money.”

The vice-president said Nigeria exited recession because of a “focused and determined leadership,” adding that this found expression is in the Economic Recovery and Growth Plan of Government.

“The results are clear, with oil production now at two million barrels per day (including condensates which are not part of the OPEC quota) and our external reserves now stand at about $34 billion.

“A second plank of immediate actions taken was ensuring that consumption and investment did not contract any further. The Federal Government did paid its own salary obligations and extended support to the states to pay the backlog of salaries.

“In addition, our social intervention programmes put money in the hands of Nigerians through N-Power jobs for young graduates, about 200,000 have been engaged and another 300,000 are in the pipeline for engagement, microcredit loans for market women and artisans, and indirectly, by paying for meals for primary school children through our home grown school feeding programme.

“The capital spend of about N1.3 trillion in the 2016 budget was unprecedented, but it was important in ensuring that money would go into the economy. This capital spend had the dual purpose, one – boosting growth through government spending but also to provide infrastructure to underpin what we hope would be a fast-growing, dynamic and diversified economy.

Speaker of the House of Representatives, Yakubu Dogara, who said for Nigeria to put an end to the gale of violence, it must eliminate poverty in the land, assured that the House is committed to providing all needed legislative interventions and measures that will exit Nigeria permanently out of recession, return it to the path of economic growth and development.

His words: “The fight against violence is the fight of the 21st Century. So many nations have lost their civilizations or have become failed states due to violence. Poverty and misery serve as fuel to violence. For citizens of democracy to defeat violence, they must first defeat extreme poverty. Our democracy cannot survive the 21st century, unless we eliminate extreme poverty and violence.

“Therefore, the most important work for democracy now is eliminating extreme poverty and expanding economic opportunities for all. This is a fight government alone cannot win. In fact, government has never won this fight. It is the private sector that always wins the fight. Our citizens and indeed all democratic Institutions must stand up and be counted. For us in the parliament, today’s event is expected to serve as our modest contribution to this noble fight for democracy and progress.”

He explained that the Ad hoc Committee on Economic Recession was set up following a concurrent resolutions of both chambers of the National Assembly to among others, monitor the various steps and policies of government on the subject; interact with relevant stakeholders towards overcoming the challenges and to help develop legislative responses to efforts by key actors designed to return our economy to the path of growth and stability.

Chairman of the occasion and governor of Sokoto State, Aminu Tambuwal, called for devolution of powers to the state to engender sustainable economic growth across the country.

According to him, “the truth is that we must find ways to get more money to the tiers of government that are closer to the people so that our economic policies will be more effective”

He noted that although the nation had technically exited recession, the margin is still fragile hence the government and all stakeholders must work assiduously to ensure that the country does not fall into the unfortunate economic trap again.
“I believe that in order to have sustainable development, the states and Federal Government must be on the same page. The need for fiscal federalism cannot therefore be over emphasized.

“I therefore, hope this conference will consider how critical devolution of powers is in the context of sustainable growth. We must close the gap between the needs of the states and the policy framework of the Federal Government. Proper devolution will engender better synchronization between the centre and other components of the federation. It is then that the crucial welfare programmes mean to cushion the effect of the recession can have better means of success,” he said.

Lalasticlala, Mynd44

BeeBeeOoh:
...Dogara, Tambuwal speaks on poverty, devolution of powers




https://newtelegraphonline.com/2017/11/corruption-jonathan-caused-recession-osinbajo/

Nebuzaradan:
Osibanjo is a vagabond puppet and a Hopless bastard vagabond Useless nonentity bribe eating scumbag

opeyehmmy:


SERIOUSLY!
This Government is the weakest and wackest one in the country's history

CROWNWEALTH019:
I'm tired of this useless fake short lying ani mal groomed by that criminal called Adeboye

sarrki:


Signs of early Dem......n .....tia

CROWNWEALTH019:
I'm tired of this useless fake short lying ani mal groomed by that criminal called Adeboye

manuelzz:
What happened to this man?

What actually happens to people when they get to Aso Rock?

How did this man become mindlessly shameless?

And at some point, i even thought this man would be different from the leaders we've had.



What happened to prof?

benuejosh:
He is still better than your entire generation. Both born and unborn, both past, present and future. The internet is not really Anonymous. Carefully ask your father, he should be envious of him and wish to be like him.

sarrki:


For saying the truth about you corrupt hero ?

clevvermind:
PASTOR HAVE DROPPED ANOTHER ONE AGAIN. AND THE BLAME CONTINUE. WHEN WILL THEY FORGET JONATHAN AND START WORKING?

Nebuzaradan:
Osibanjo is a vagabond puppet and a Hopless bastard vagabond Useless nonentity bribe eating scumbag

sarrki:


For saying the truth about you corrupt hero ?

Nebuzaradan:
[s][/s]
Nonsense trash

Nebuzaradan:
Osibanjo is a vagabond puppet and a Hopless bastard vagabond Useless nonentity bribe eating scumbag

manuelzz:
What happened to this man?

What actually happens to people when they get to Aso Rock?

sarrki:


All enemies of the state will not end well

Firefire:
If indeed this statement is coming from Pastor Osinbajo, I am bold to say that he is deranged.

sarrki:



Head of the schil...z .openia unit have spoken

manuelzz:


Chai bros this your Zombie work no easy o.

Look at the time, and you are already up zombielyzing.