OIL ECONOMY NOW DEAD – SOLUDO
Emmanuel Thomas l Tuesday, August 22, 2017
LAGOS – Nigeria spent a total sum of N1.3 trillion on capital projects in the year 2016, Vice President of Nigeria, Professor Yemi Osinbajo has said.
He made the revelation at the ongoing Nigeria Bar Association Annual Conference in Lagos.
“Our focus is on agriculture, power, infrastructure, railway, roads and all that, ensuring that we spent more than ever before on capital.
“For instance, in 2016, we spent about N1.3trn on capital which is the largest ever spent on capital in this country and we intend to increase the capital spending year on year; that’s part of the economic recovery we’ve planned,” Professor Osinbajo said, adding that government has cleared the mess of the past and that the President Muhammadu Buhari’s administration is laying the foundation for economic development.
Also speaking at the event, former Governor of Central Bank of Nigeria, Professor Charlse Soludo emphasized that good management of Foreign Exchange is key for economic growth and development, stressing that creating various Forex windows for different groups in the society promotes a situation where people take money from one widow and sell in another thereby making fast money instead of engendering the desired goal of stimulating the economy.
He canvassed for a convergence of the rates. He explained that the economy will recover from recession with little or no efforts but that Nigeria must realise that oil economy is dead as nations in Europe set targets to replace vehicles that run on petrol and diesel engines with electric cars.
He condemned recent amendment in the constitution giving local governments autonomy to get funds directly from the federal government. According to him, the development creates a situation where everybody goes to Abuja to share money.
For him, such development does not promote economic growth. He called on Nigerians to support restructuring that will engender competition for economic development.
