Getting Nigeria out of economic recession

At last, the Federal Government is coming to terms with the reality of Nigeria’s economic recession.  For this, it is determined to take far-reaching actions in order to stem the slide and bring the country back to economic prosperity. Therefore, it did not come as surprise that it convened a one-day economic session in Abuja. The session which had in attendance, President Muhammadu Buhari, Vice President, Yemi Osinbajo, ministers and heads of relevant federal ministries, departments and agencies was intended to come up with ways of pulling the country out of the present predicament.
In fact, there is no denying that the session was long overdue. Financial and economic experts had posited that even when Nigeria may have run out of monetary policies to fight the recession, there are much the authorities could still do on the fiscal front. That was why they advised against the ban on imported goods, while urging the government to rethink price controls especially that affecting petrol which threaten to reintroduce subsidy through the back door.
Definitely, it needs rehashing that it is important and urgent to pump in money back into the economy, without the commensurate inflationary tendencies it can bring. One of the ways of doing this is to source for funds for infrastructure projects. Another is to make taxation simpler, in order to improve coverage, rather than shutting down businesses through punitive taxes. The key is to get businesses spending, contractors working and investments returning in order to create jobs and put the millions of unemployed Nigerians back to work.
What the country needs at this time is a robust fiscal intervention. We therefore call on the Executive and Legislature to work hands in glove to address this national emergency. This is not the time for nitpicking and muscle flexing. That is why the threat by the Senate President, Bukola Saraki, to probe the cause of the recession is uncalled for. We counsel that all hands should be on deck in order to steer the ship of state through the present rough seas. Anything contrary would exacerbate political tension and deviate from the quest for lasting solution to the economic quagmire. Even at that, there is no evidence that the Senate can do justice to the question of the recession, given that they are yet to show exemplary leadership in the face grinding economic difficulties.
Our grouse is that those in political authority should stop behaving as if they are living in different country from Nigeria. According to the Central Bank of Nigeria, (CBN), the country’s external reserves have been depleted by $1bn in the past one month.  This development was as result of daily intervention at the interbank/official foreign exchange market, even as chronic dollar shortages continue to weigh on the economy.
To prevent further fall of the naira at the interbank market, the regulator has been selling dollars more frequently, leading to fall in external reserves by 2.86 percent to $25.45 billion on August 29, 2016, up from the $26.2 billion at the end of July. Year-on-year, the reserves have fallen by 18.9 percent. The reserves had fallen by 0.4 per cent at the end of July, down from the $26.34 billion recorded on June 29.
We advise that the CBN remove all kinds of controls at the interbank market, and allow the naira to truly find its value. While this pill is bitter, it is vital in order to attract the needed foreign exchange. Moreover, it is pertinent that the Buhari administration takes this opportunity to diversify the economy from perennial over reliance on the sell of crude oil. It is therefore time to invest in mechanised agriculture, which not only has the potentials for job creation but also for earning revenue for the country.
In the face of the continuing hardship, it is pertinent to commend the patriotism and kindness of some Nigerians in these trying times. Stories abound of landlords who unilaterally have reduced house rents paid by their tenants in view of the current economic difficulties. That shows that Nigerians can be their brother’s keepers in times of need.
While commending such acts, we call on the federal government to urgently find solution to crippling this economic recession in order to bring back joy in the land.