Investment in infrastructure will get us out of recession – Udoma
Minister of Budget and National Planning, Senator Udoma Udo Udoma, on Tuesday told laureates of the Nigerian National Order of Merit that massive investment in infrastructure was the surest way to get the country’s economy out of recession.
Senator Udoma who addressed the annual forum of the laureates in Abuja during their 9th Award Winners’ Lecture, said that government was therefore looking at various strategic ways of restoring revenue and getting the economy back on the path of sustainable growth.
He pointed out that in spite of the revenue shortfalls experienced during the 2016 budget year, N753.6 billion has so far been released for capital expenditure, targeted principally at the Ministry of Power, Works and Housing, as well as the Ministry of Transportation.
“This, in fact, exceeds the aggregate capital expenditure budget for 2015,” he added.
Justifying the priority given to infrastructure the Minister said, “there is no doubt that government-led investment in public infrastructure is one of the fastest ways to get an economy out of recession”.
He told the gathering that government has been having difficulties funding the Budget because of the disruptions of oil production in the Niger Delta; but noted that notwithstanding current challenges, government must find ways to increase the level of its spending.
“At one time, almost half of our production was shut in because of pipeline vandalism. This compounded our economic situation and pushed us into the current recession we are experiencing in the country. We are looking at ways to restore our revenues and get the economy out of recession and back on the path of sustainable growth.”
He explained that the resultant epileptic income stream also affected exchange rate stability, another issue which has to be addressed if the country is to succeed in its development drive.
According to him, exchange rate stability has been a major issue which the Federal Government has been grappling with as a result of the reduction in foreign exchange earnings caused by the fall in crude oil exports.
Therefore, he said, the Federal Government will welcome every genuine idea from experts on how to address these economic challenges; and is looking forward to receiving the various papers and recommendations from the lecture, some of which might be directly integrated into the National Recovery and Growth Plan which is currently being tidied up.
The Minister was delighted that the forum which had the theme “Mono-economy, Diversification, Exchange Rate stability and the Development of the Nigerian Nation”, was organised to provide a platform for the laureates to deliberate and exchange ideas on salient issues of national interest thereby contributing to national development.
The key words of the theme, he noted touches directly on issues that are very reflective of the challenges the nation is currently facing.
