Skip to main content

Nigeria should borrow, spend less, earn more to exit recession – Obasanjo

Chief Olusegun Obasanjo, former Nigerian president

Chief Olusegun Obasanjo, former Nigerian president

Former President Olusegun Obasanjo on Tuesday stressed the need for Nigeria to borrow, spend less and earn more to get out of the current economic recession.

Obasanjo said this in Abeokuta at the opening ceremony of the National Council On Finance and Economic Development Conference (NACOFED).

The theme of the conference is “Enhancing Revenue Generation and Obtaining Best Value for Money in Expenditure”.

According to Obasanjo, the major problem with Nigeria is that “we are spending more than we are earning and we have not been able to save for the rainy day”.

He, however, proffered a three-fold solution of borrowing, spending less and earning more to the economic challenges of the nation.

Obasanjo, who said that funds were available outside the country, advised that Nigeria needed to approach its allies who could lend to the country on reasonable terms.

He warned, however, that no such nation would part with its funds without observing that Nigeria was taking practical steps to come out of its challenges.

The former president said that Nigeria must encourage production to earn more and increase its revenue.

He said since the nation was not in control of oil, it should therefore diversify and concentrate on the things it could control.

Obasanjo, who stressed the need to develop agriculture, frowned at policies which tended to turn the nation into a dumping ground for other countries’ products.

“I was shocked when the ban on importation of toothpick which we imposed in 1977 was lifted four years ago.

“How can a nation seeking to rank among the best in the world continue like that?

“We must begin to do away with things that we can do without and if we must import them, let them attract very high duties,” he said.

Obasanjo who backed the call for the sale of some national assets to raise money, described such act as natural.

The former president said port authorities and Nigeria National Petroleum Corporation (NNPC) were part of assets that Nigeria could partly sell to generate fund.

“I do not see why 49 percent of NNPC cannot be privatised.

“I think the problem is in the coinage “selling of asset” as if we want to throw out our inheritance.

“What we are actually doing by that is simply re-organising.

“It should however be done transparently and let it actually go public and not to cabals, relations and friends.

“This is always the fear of Nigerians when issues like this arise,” he said.

Obasanjo expressed confidence in the ability of the Minister of Finance, Mrs Kemi Adeosun, saying that ”she is doing a marvelous job in a difficult situation and that only time can prove her right”.

Adeosun, who spoke earlier, said that the Federal Government had till date invested over N700 billion to stimulate growth in the economy.

“We are working on an economic model that will change Nigeria from being consumption focused to investment focused,” she said.

Comments

Popular posts from this blog

Houthis Claim Attack on Central Israel in Response to Gaza ‘Massacres’

The ongoing conflict between Israel and Hamas has taken a concerning regional turn as the Houthi rebels in Yemen claimed responsibility for an attack on central Israel. The group announced this as part of their escalating response to what they describe as "massacres" in Gaza amid the Israeli military’s operations in the strip. Details of the Attack The Houthis, a Shiite militant group with ties to Iran, declared that they launched missile and drone strikes targeting Israel. While the exact impact of these attacks remains unclear, reports suggest that Israel’s defense systems intercepted several threats over its airspace. This marks a significant escalation as the Houthis widen their involvement in the conflict beyond their typical operations within Yemen and neighboring Saudi Arabia. The Houthis’ Justification In their statement, the Houthis framed the attack as retaliation for Israel’s military actions in Gaza, which they characterized as indiscriminate bombings resultin...

Fire: UniJos Senate convenes emergency meeting on Monday

Fire at the University of Jos Library University of Jos is to convene an emergency senate meeting on Monday to review the level of damage done to the institution by the Saturday night inferno. The Vice Chancellor, Prof. Sebastian Maimako, disclosed this on Sunday after inspecting areas affected by the incident. The fire, which lasted for more than six hours, destroyed the Library Complex that equally houses the faculties of management and social sciences. The fire also destroyed examination scripts, books and very crucial materials. Consequently, the vice-chancellor said “the Senate will meet tomorrow (Monday) to take a decision about the unmarked examination scripts that were burnt.” On the cause of the inferno, Maimako said investigation had commenced, adding that “nothing has been confirmed yet. We are still investigating.” The vice chancellor said the school was already working with federal authorities toward establishing a main fire station since the mini fire station in t...

NDLEA arrests 252 suspects, seizes 3,073 kg Indian hemp

NDLEA operatives The NDLEA in Niger on Monday said that it had arrested 252 suspects and seized 3,073.9 kilogramme of Indian hemp(cannabis sativa) in the state. The NDLEA Commander in the state, Mr Joseph Iweajunwa, who disclosed this in Minna, said that the operations were carried out between January and September. “Our operations in Niger State from January to September 2016 led to the arrest of 252 suspects and seizure of 3,073.997 kilogramme of cannabis sativa,’’ he said. Iweajunwa said that within the period, the agency also seized 1, 530 litres of liquid drugs, especially cough syrup with codeine. He said the NDLEA also counselled and rehabilitated 90 drug addicts in the state within the period under review. The agency, he added, secured convictions of only nine of the suspects because the judge at the Federal High Court, Minna, went on leave. “ Now that the judge has resumed more suspects will be tried,’’ he said. He advised motorists, especially commercial vehicle dri...