http://www.punchng.com/business/business-economy/okonjo-iweala-warns-nigerians-to-prepare-for-economic-recession/
June 14, 2012 by Olalekan Adetayo

The Minister of Finance, Dr. Ngozi Okonjo-Iweala, on Wednesday alerted members of the Federal Executive Council to a possible economic recession based on happenings in the global economy.

She, therefore, warned them to shun profligacy in the management of the nation’s resources.

The Minister of Information, Mr. Labaran Maku, disclosed this to State House correspondents at the end of the weekly FEC meeting.

He was joined at the briefing by his Interior and Health counterparts, Mr. Abba Moro and Prof. Onyebuchi Chuwku, respectively.

Maku said Okonjo-Iweala spoke of the noticeable downward slide in the price of oil in the international market and called for caution in the management of the nation’s resources in case of a recession.

He, however, quoted the minister as assuring FEC that her ministry was preparing well towards mitigating the likely effects in case the crisis got deeper.

Maku said, “The Minister of Finance briefed the Council about the global economy environment and generally, Council was told that there were some difficult moments out there in the international economy, particularly because of the crises in Greece and Spain.

“She said the crises had begun to impact on the global economy and one of the things we were informed by the minister was that we noticed some downward slide in oil prices in recent weeks. The Minister of Finance told us to buckle up and ensure proper management of available resources to prepare Nigeria in case there is any recession.”

He added, “We are not expecting one; you know that during the last financial meltdown, which crippled most developed economies with negative impacts on developing countries, Nigeria was able to weather through because we were prepared.

“Right now, the Ministry of Finance is preparing just in case the crisis goes a bit deeper, Nigeria should be positioned to weather the storm and coast safely. Presently, we have no problem in terms of our finance management.”

The council also approved a new visa policy for the country based on the memorandum submitted by the Ministry of Interior.

Maku said the decision to approve the new visa policy was taken based on the discovery that the current policy was based on assumptions and dynamics that had changed.

He said the major objective of the new visa policy was to facilitate easier access to the country, particularly by foreign investors.

A major highlight of the new policy, according to him, is that strategic visitors to the country will have the opportunity of getting visas at entry points, especially at the airports.

Another highlight is that the length of period of visa validity that will be granted to investors under the new dispensation will be up to 10 years.

The minister said since long duration visas were being done in many countries across the world, Nigeria could not afford to take the back stage, especially with the country gradually becoming a destination of choice for investors in the African continent.

He said in as much as the new policy was visitor-friendly and targeted at economic development and national interest, the Federal Government would ensure that criminals would not exploit it to gain entrance into the country.

Maku said, “The present visa policy is based on assumptions and dynamics that have changed. The present economic situation in the country is characterised by high unemployment among the youth. When youths are not productively engaged, internal security threats and social discontents become more pronounced.

“The new visa policy will boost tourism, attract targeted Foreign Direct Investment, create employment opportunities, attract skilled migrant workers and keep the national boundaries more secured.”

Moro gave an insight into the new visa policy, saying it allowed for “the principle of reciprocity; that is, I treat you the same way you treat me.”

He said apart from the fact that impromptu business visitors from countries where Nigeria had no embassies could get their visas at points of entry, there were provisions for temporary resident visas, permanent resident visas as well as investors or skill transfer visas.

alj harem: of course after increasing the price of fuel. I said this during the fuel subsidy crisis even though I am not an economist neither am I intelligent or educated but I am certain that increasing the price of fuel (economic dependence) to world standard would expose our economy to the variation in the world. This was what I predicted.

Now I hope Manny4life would come and explain this.

Another Okija:


Whats been wrong with you lately... I thought you were supposed to be me?!

Why do you speak ill of Okonjo without my permission?!

Now apologize to Okonjo and say you love her!!

Kobojunkie: So . . . when the global price of Oil falls, Nigeria is likely to fall into a recession? Has this always been the trend? Cause, seems this is new. And what of all the tops of Nigeria depending less on oil?

If we are to go by reports, Oil contributes less than 20% of the GDP so why would a fall in oil prices be enough to lead us into a recession?

dasparrow: I am quite disappointed about the so-called new visa policy. So while countries around the world are guarding and tightening their borders, Nigeria is gladly opening hers. I don't know why our leaders can't seem to get it right. How can we boost tourism when there is no security and stability in the country? or do our leaders think the world is not aware that every sunday now, boko haram is blowing people up? How can we attract investors when we still cannot boast of 24 hours of uninterrupted electric/power supply?

Our leaders want to copy the west but they fail woefully at it because we are not organized as a nation. Even right now, we have many chinese, lebanese, and indian people in Nigeria who are not skilled migrants and are driving okada or selling in the market place so what happens when we start issuing visa at the port of entry? Foreigners who are conversant with the high levels of corruption in Nigeria will just bribe their way through. Mean while, other nations are busy deporting Nigerians anyhow, lol. We better wake up before we become strangers in our own land/turf/country. It seems we Nigerians don't think about the future.

Kobojunkie: So . . . when the global price of Oil falls, Nigeria is likely to fall into a recession? Has this always been the trend? Cause, seems this is new. And what of all the tops of Nigeria depending less on oil?

If we are to go by reports, Oil contributes less than 20% of the GDP so why would a fall in oil prices be enough to lead us into a recession?

koruji: Actually this is not new, and is in fact the entire history of our economy.

Yes, oil contributes less than 20% of GDP, but if oil prices continue the current trend it is going to reach about $60 before the bleeding stops - that would be about 60% of what it was over the last year or so - and you know our senators set the budget based on a high oil price. Anyway, all a recession needs is for several quarters of negative growth, and even a 25% decline in the oil price over 6 months is enough to cause that.

dasparrow: Our leaders want to copy the west but they fail woefully at it because we are not organized as a nation. Even right now, we have many chinese, lebanese, and indian people in Nigeria who are not skilled migrants and are driving okada or selling in the market place so what happens when we start issuing visa at the port of entry? Foreigners who are conversant with the high levels of corruption in Nigeria will just bribe their way through. Mean while, other nations are busy deporting Nigerians anyhow, lol. We better wake up before we become strangers in our own land/turf/country. It seems we Nigerians don't think about the future.

damilola15: [b]Let it come. [/b]Nigerians are survivors.I remember that terrible hardship during that Babangida/Abacha time, nothing do us.
Economic Recession, maybe the banks and those loots would feel it but that we would be thrown into misery like it's happening in America and Europe? No way.

He added, “We are not expecting one; you know that during the last financial meltdown, which crippled most developed economies with negative impacts on developing countries, Nigeria was able to weather through because we were prepared.

dasparrow: I am quite disappointed about the so-called new visa policy. So while countries around the world are guarding and tightening their borders, Nigeria is gladly opening hers. I don't know why our leaders can't seem to get it right. How can we boost tourism when there is no security and stability in the country? or do our leaders think the world is not aware that every sunday now, boko haram is blowing people up? How can we attract investors when we still cannot boast of 24 hours of uninterrupted electric/power supply?

Our leaders want to copy the west but they fail woefully at it because we are not organized as a nation. Even right now, we have many chinese, lebanese, and indian people in Nigeria who are not skilled migrants and are driving okada or selling in the market place so what happens when we start issuing visa at the port of entry? Foreigners who are conversant with the high levels of corruption in Nigeria will just bribe their way through. Mean while, other nations are busy deporting Nigerians anyhow, lol. We better wake up before we become strangers in our own land/turf/country. It seems we Nigerians don't think about the future.