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Why Nigeria economic recession is lingering — CBN

Central Bank of Nigeria (CBN)

Central Bank of Nigeria (CBN)

 

The Director of Policy of the Central Bank of Nigeria, CBN, Mr. Moses Tule, said on Tuesday the economic recession was lingering because economic and financial experts had not been allowed to do their jobs.

Speaking at the Chartered Institute of Bankers of Nigeria, CIBN, roundtable meeting in Abuja, Tule said the raging recession in Nigeria required that professionals be allowed to perform their tasks and give direction.

“Some came in as doctors into the macro-economic management and are giving the tools of medical doctors to advise on how to solve the problem of recession. Some came in as carpenters and they are using carpentry tools to advise on the problems of economic recession; some came in as engineers and they are using their tools to advise on how to address economic recession.

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“They have not allowed the professionals to do their jobs. They have not allowed the professional to provide the direction.”
He said the recession started because oil prices crashed and the Niger Delta Avengers had blown up oil producing facilities and export facilities, severally.

“When they blew the Forcados , it took government six months to fix Forcados. That was a loading bay. And after fixing it, they went back and blew it again. So we have oil prices and production going down.
The implication is that foreign exchange earnings are going down, but unfortunately, our import expenditure is not going down. It is still in the region of N976 billion, monthly.”
“The moment we began to prefer imported goods to our domestically produced goods, we laid the foundation and built the superstructure to where we are now. This is a conscious choice. Every country makes the choice where it wants to be. This is what we chose for ourselves as a country.”
Tule said the CBN through its Monetary Policy Committee (MPC) had early last year warned the government of economic recession, but the warning was not heeded.

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