Soludo proposes N19trn ‘anti-recession’ spending

Former Governor of the Central Bank of Nigeria (CBN), Charles Soludo, has expressed support for President Muhammadu Buhari’s emergency economic bill aimed at reviving the economy. He has also proposes a public spending of 15 percent to 20 percent (N14trillion to N19trillion) of the nation’s gross domestic product (GDP) to steer Nigeria out of recession to the next level.

Soludo’s position was contained in a mini-blueprint for the All Progressives Congress (APC).

The former CBN governor also said the document, is not a “blueprint” in itself but “only broad pillars”, which could be worked upon by a dedicated team to save the economy.

Highlighting the challenges face by the country, Soludo said Nigeria is ranked number 13 in the failed/fragile state index, behind Somalia, South Sudan, Central African Republic, Sudan, Yemen, Syria, Chad, Congo D.R., Afghanistan, Haiti, Iraq, and Guinea.

The professor of economics said this is due to uneven economic development, poverty and economic decline, demographic pressure, group grievance, refugees and IDPs, human flight and brain drain, state legitimacy, human rights issues and rule of law, poor security apparatus, factionalised elite and external intervention.

Soludo stated that Nigeria’s GDP compression from about $575 billion to about $296 billion (almost 50%) back to 2nd position in Africa after South Africa could have been avoided.

“Exchange rate and crude capital controls: confusing trial-and-error of tried and failed neo-socialist command and control policy regime of 1960s- mid 1980s.

“As predicted, quantities (employment and output collapse)! Capital market comatose; capital flight with vengeance, private investment pulse, inflation soars, and twin deficits exacerbate. Economy in Recession compared to APC 10% Growth; 3 million jobs p.a.”

He said the recession was caused by “delayed, incoherent (dysfunctional) and incomplete adjustment exerting great toll on the economy”.

“Outcomes so far (especially in 2016) self-inflicted by acts of omission and commission. Nigeria would have avoided a recession: One year enough for blaming fall in oil prices; after that blame our failures.”