A former Minister of Education, Mrs. Oby Ezekwesili, has said the administrations of former President Goodluck Jonathan and that of the incumbent, Muhammadu Buhari, led the nation’s economy into recession by failing to adopt the right policies to deal with the crash in crude oil prices, which began in mid-2014.

Ezekwesili noted that while Jonathan’s administration failed to do something about the impending recession before leaving office, the current administration also failed to launch a comprehensive fiscal stabilisationprogramme on assumption of office in May 2015.

She spoke as the guest speaker at the inaugural Business Lecture of the Lagos Country Club in Lagos on Thursday night.

According to her, the economic policies of the present administration have worsened the matter, because they are not the right policies.

She said, “The parlous state of the Nigerian economy by the 29th of May, 2015 should have instructed an incisive and urgent macroeconomic stabilisation programme to realign the price levels in the economy. By May 2015, we knew we were already in trouble. As a matter of fact, we were already in trouble in 2014. That was the first time that growth collapsed to 3.8 per cent. The incoming administration should not have been told that we were weak and vulnerable.

“Had the government made quick and necessary adjustment that corresponded close enough to the level of impact of the 40 per cent decline in oil revenue, our story could have been different today. We would never have lost growth.”

Ezekwesili, a former Vice-President of the World Bank, further stated, “There is a new level that our post-2014 oil shock economy needed to find for stability. We needed a policy response that could have enabled that adjustment to happen immediately. That response could have helped the economy to absorb the shock. It could have reassured the investors. It could have reassured the consumers. It could have helped us to reasonably retain investor confidence in the economy, but that did not happen.

She stated, “The attendant fiscal pressure and the delayed right policy responses were severe enough that by 2015, economic growth had sharply declined from 3.8 to 2.7 per cent. And then began the sharper loss of growth into negative growth rate by 2016. It was a major mistake that the economy did not get timely and right type of policies that could have helped us avoid the calamitous collapse into negative growth in the last three quarters of 2016.

“The economic preferences did in fact worsened matters and set off a wave of uncertainties that dented investors’ confidence in the economy. So, it is accurate to conclude that both the preceding and successor governments conspired by their actions and inactions to throw the Nigerian economy into the deep throes of economic recession of which it must be rescued in order to avoid social implosion.”

The former minister, therefore, urged Nigerians to place a demand on the government to retrace its step and implement the right policies.

She said, “The record of the government today for timely and right actions on the economy is, however, so far not encouraging at all. For almost one year, the government delayed prime action on the fuel subsidy regime despite its aggravating import on fiscal imbalance.

“Over the same period, it delayed the right action on the exchange rate policy despite the deleterious effects that it was having on foreign reserves, the value of the naira, as well as on inflation. Before the government came on board, inflation level was nine per cent; today, inflation has doubled to more than 18 per cent. The greatest enemy of the poor is inflation. The greatest enemy of business is inflation. All you need in order to destroy the poor is total unstable price levels in an economy”

On how to restore the economy to the path of growth, Ezekwesili added, “The citizens must place a demand on the government to implement right economic policies.

“As long as we continue on the path of wrong economic prescriptions for the economy, the situation will to worsen. The more these indicators deteriorate, the harder it will be for growth to resume. The macroeconomic stability that poor choice of economic policies helped to unravel within one year took many years of work

“It is therefore critical for citizens to convict the federal government to urgently retrace its steps back to what it failed to do on May 29, 2015. We swore to allow the market economy to adjust itself without command and control. The government failed to launch a deep fiscal consolidation programme. Recession is nothing new in the countries.”


Ad:See How you can turn $500 into $10,000 Click HERE For Details.
SHARE
  • vic

    MATTERS OF THE MOMENT:

    RE: THERE IS NO RECESSION IN NIGERIA EXCEPT THAT WE HAVE NEW LOOTERS IN THE TOWN.

    THERE IS NO RECESSION IN NIGERIA TODAY.

    RECESSION MANTRA HAS ONLY BEEN DRUMMED UP AND REHEARSED BY THE CLUELESS FOREX FRAUDSTER CABAL OF BUHARI TO KEEP SHUT THE NLC AND OTHER LABOUR UNIONS IN THE COUNTRY WHILE THIS CABAL IS BUSY LOOTING THE COUNTRY’S DOLLARS AND NAIRA. IT IS A NEW STRATEGY OF DECEIT AND DECEPTION INTRODUCED BY THE CORRUPT BUHARI LED APC TO CONTINUE TO LOOT NIGERIA, UNABATED.

    CROOKED BUHARI, IF THERE IS RECESSION IN NIGERIA TODAY THEN TELL US NIGERIANS, HOW DID YOUR WIFE, AISHA BUHARI MANAGED TO BUY A 18 CARAT WHITE GOLD, RARE DESIGNERS WATCH – wb520034, STUDDED WITH DIAMONDS, BOUGHT FOR £34,500 (THIRTY FOUR THOUSAND AND FIVE HUNDRED BRITISH POUNDS) SEEN IN HER OFFICIAL PORTRAIT WHICH IS NOW A PUBLIC MATTER?????????? DID YOU STEAL THIS AMOUNT IN COLLABORATION WITH YOUR FOREX HOUSEBOY, CBN GOVERNOR, ME GODWIN EMEFIELE OR DO YOU PRINT BRITISH POUNDS IN YOUR ASO ROCK RAT HOLE???

    MR BUHARI, ALSO TELL US NIGERIANS, HOW DID YOUR WIFE, AISHA BUHARI AFFORD TO BUY THAT SINGLE DESIGNERS’ DRESS WORTH MORE THAN $2600 SEEN WEARING AT AN OVERSEAS CONFERENCE???? DO YOU ALSO MANUFACTURE DOLLARS IN YOUR ASO ROCK RAT HOLE.

    THE ABOVE SHOWS YOUR HYPOCRISY ABOUT RECESSION AND YOUR FAKE FIGHT AGAINST CORRUPTION IN NIGERIA WHILE YOU CONTINU8E TO BE ONE OF THE MOST CORRUPT FOREX FRAUDSTER IN NIGERIA WHICH DOES NOT SEEM TO AFFECT YOU AND YOUR CABAL BUT THE POOR MASSES OF NIGERIA AND THE POOR DYING OLD AGE PENSIONERS AMONG OTHER VULNERABLE PEOPLES OF NIGERIA.

    SO MR CLUELESS CROOKED BUHARI STOP BEATING THE FALSE DRUM OF RECESSION IN NIGERIA AND MAKE EFFORTS TO STOP LOOTING THE CENTRAL BANK OF DOLLARS AND POUNDS UNABATED. JUST IN 7 MONTHS, MR BUHARI YOU CLAIMED $23 MILLION IN ESTA CODE AND OTHER TRAVELING ALLOWANCES FOR YOUR UTTERLY USELESS FOREIGN TRIPS WHICH ONLY FATTENED YOUR DEEP POCKETS WITHOUT BENEFITING THE POOR MASSES OF NIGERIA. IT APPEARS THAT WELFARE OF THE POOR MASSES OF NIGERIA AND THE POOR OLD DYING AGE PENSIONERS IS THE LAST THING IN YOUR MIND. CLEARLY, WE HAVE A NEW LOOTER IN THE TOWN WHOSE ONLY JOB IS WHOLESALE DECEPTION, LOOTING AND STEALING OF THE TSA ACCOUNT.

  • vic

    SO MISS WORLD BANK, WHAT ARE THE SOLUTIONS, YOU SEEM TO BE MERELY SITTING ON THE FENCE????

  • sir cyee

    Why is Ezekwesili shying away from her responsebility, since she and Rotimi Amechi foisted this regime on Nigerians. OK because you are not appointed to serve, you can criticize to attract attention. Why not be bold to call a spade a spade? A good leader should not blame but take up the challenge and right the wrong for that was the main reason he sought for election.