Adeosun, Minister, Finance, Saraki, Senate
Nigeria's Finance Minister Kemi Adeosun speaks at a news conference in Lagos, Nigeria, April 9, 2016. | Reuters/Akintunde Akinleye

Kemi Adeosun, Nigeria’s minister of finance has admitted that Nigeria’s economy is very bad shape, saying, it is in “its worst possible time”.

Mrs. Adeosun confirmed the report of the National Bureau of Statistics which says that the West African giant is in a recession.  She also said the nation has a long way to go and the government was not deceiving itself that all was rosy.

Adeosun spoke with State House correspondents at the end of a meeting of the Federal Executive Council at Presidential Villa, Abuja on Wednesday, August 31, 2016.

“It’s the worst possible time for us. Are we confused? Absolutely not,” the minister said.

She identified some of the ways the country could get out of recession to include diversification of the economy and investing in capital projects.

She said, “How are we going to get ourselves out of this recession. One, we must make sure that we diversify our economy. There are too many of us to keep on relying on oil.

“We can see what happened at the output data of the oil and gas sector. What’s happening in the Niger Delta has dragged down the GDP of the entire economy. We are too dependent on oil, whereas 87 percent of our GDP is non oil. So let us drive those other areas

“We have to invest in capital projects. No, we are not confused, the time are confusing but we are not confused. We are extremely focused. We know that if we can just bare and get through this difficult period, Nigeria is going to be better for it.

“If we rely on oil and the price of oil remains low and the quantity of oil remains low, we can’t grow. We have to grow our non oil economy

“I think that we have a long way to go. We’re not confused and we’re not deceiving ourselves that everything is rosy. It’s not.

“It’s a difficult time for Nigeria but I think Nigeria is in the right hands and if we can stick with our strategy. We still have some adjustments to make. I think we need to make some adjustments in monetary policy.

“It’s quite clear we do and we will do that. We’re working on that. We need to try and find a way to support the manufacturing sector better and we will do that.

“What we have is cost-put inflation and when you have cost-put inflation it is structural inflation. It is not going to respond to monetary policy tools such as increasing the rate of interest. We have to address the structural causes of the inflation

“The trend, the rate of inflation growth has slowed down and that’s a good sign.”

1 COMMENT

  1. That’s all right buh ow about bring down the price of everday goods. For instance, the price of fone credits is too much. Is there price fixing going on ? Look at cement ! Why is a bag of cement high & is there price fixing or abuses of monopoly or near monopoly there ? Why should a bag of rice b cheaper in Cotonou than in Lagos ? If there’s free trade in ecowas, y do Nigerian customs give pple grieves for bringing in everyday goods ??? It create wealth for smugglers who are usually middle class to the detriment of working class nd dare I say the proletariat. Open up the border like UK did with booze run from Calaise to London. Everyone is allowed so long as yu stay within legal limits nd provisions. Why can’t Nigeria do that in this hard times to drive down the price of everyday goods ? Who benefits frm this policy ? The Dangotes of this world to the detriment of poor pple. If someone creates a monopoly for me and I have access to capital market, I could be richest man in Africa too. This is not astrophysics. The whole country is carved up nd mortgaged to rich pple like Dangote et al. What is the production cost of a bag of cement ? Petrol is cheapest in the USA now but very high nd expensive in Nigeria. Why ? Fundamentally tho, Nigeria has serious structural problem in that the statutory sector (local,state & federal) is by far the biggest employer of labour ! No progressive economy can afford to let the private sector go weak like that. All over the world, the emphasis has nd should always be small government with big viable private sector. As such the government should empower the private sector to take lead role inthe diversification process. Allow ordinary Nigerians buy stakes in important sectors of the economy like solid minerals, agricultural nd oil & gas. The communication watchdog shd crack down on the sector to bring down cost to consumer. Interest rate must come down to stimulate investment rather than savings like in developed nd developing economies. That way job creation will cum alive and less incentives for pple taking their looted funds to offshore haves the world over. The penalties for taken funds to offshore or outside of Nigeria must be stiffer to serve as disincentives to perpetrators. I will repeat again here that Capital punishment is the only remedy for corruption nd fraud against the Nigerian state for culprits nd those who helped to perpetrate nd perpetuate it. Be it Chief justice or judge, police, or attorneys !

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