Chairman of Nigerian conglomerate Honeywell Group has warned that Nigeria’s economy is in a state of “national emergency.” Oba Otudeko who was a speaker at an agricultural conference in the capital Abuja, urged all stakeholders to diversify Nigeria’s oil-dependent economic base and develop other sectors.
“I respectively opine that our current economic state is a national emergency and all hands – federal, state and local governments – must be on the deck together to craft a lasting solution, using agriculture and agribusiness as driving vehicles,”
“We have created an economy characterized by sustained unbalanced budget with high fiscal deficit; high cost of governance; long era of conspicuous consumption; limited savings, if any, at all levels; high youth unemployment and unmaintained fragile and lean infrastructure,”
Oba Otudeko further stated that a lack of foresight by the new managers of the Economy led to the crisis.
After a decade of an unprecedented average growth above 7 percent, Nigeria’s economy will grow just 2.8 percent this year, according to World Financial Experts. Oil accounts for more than 80 percent of Nigeria’s foreign exchange earnings and about 70 percent of government revenues. Nigeria’s oil dependency has put the economy at risk in the wake of a global economic slowdown and plunging crude prices.
The Naira has lost 25 percent of its value in the past year and the stock market plummeted 14 percent this year. Nigeria’s Economic problems started after Former President Goodluck Jonathan conceded defeat and peacefully handed over power to Muhammadu Buhari, who took office in May 29, 2015.
Investors are wary because President Muhammadu Buhari has taken five months to announce his Cabinet nominees and has not assigned portfolios to even those ministerial nominees confirmed by the Senate. President Muhammadu Buhari is yet to detail a blueprint to guide much-needed economic reform.
By Osita Ashiuloka – Abuja
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. We also authorize the copying and usage of parts or the whole of this publication as long as Credit is given to thebreakingtimes.com and other mentioned sources.