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How Buhari, APC’s poor ideas put Nigeria in recession –Soludo

How Buhari, APC's poor ideas put Nigeria in recession --Soludo

A former governor of the Central Bank of Nigeria (CBN) Prof Chukwuma Soludo has stated that the poor economic ideas implemented by the present administration is the reason Nigeria fell into recession.

He lamented that fixing the nation’s economy is not as difficult as the administration’s policy makers would want Nigerians to believe.

Soludo made the observation while presenting a paper at the 2017 International Conference of the Department of Business Administration of the Nnamdi Azikiwe University, Awka, Anambra State on Thursday.

The theme of the conference was “Managing a recessed economy; options for Nigeria.”

According to the renowned economist, Nigeria began to witness economic downturn barely a year after President Muhammadu Buhari took over power, because the country’s policy makers were unable to rise to the challenge.

The recession, Soludo noted was avoidable had proactive steps been taken by the government in its early days.

“Poor ideas transcended over superior ideas, and we went into recession which was slightly avoidable. That is why academics must be alive to their responsibility of nudging us to reality; the reason I commend you for this international conference.

“Success and failure are all in the mind and only those who persist get to their destination.

“The recession Nigeria went into was largely avoidable and for things to change for the better, Nigeria cannot afford intellectual isolation because there is a need for exchange of ideas among intellectuals from various fields to put things right.

Read also:
What CBN must do to rescue Nigeria’s economy –Soludo

He continued, that “The Nigerian economy was growing because of the power of ideas of the people in charge. Instead of sustaining the growth, we drove the economy into this recession.

“For example, between 2010 and 2014, oil price was above $100 per barrel but we were unable to accumulate foreign reserve. When I took over as the CBN Governor, foreign reserve was about $10bn and we kept growing it on an annual basis as a deliberate policy such that it was over $45bn by the time I left.

“In 2010, I warned that if oil price went down to below $40 per barrel, most states would not be able to meet their obligations and that was exactly what happened. So, the problem was that we were not saving and we were even borrowing to implement recurrent expenditures.

“We were borrowing for consumption and for capital projects with the result that all the money we spent was borrowed at a time.

“When the oil price slumped, some people in government even felt that it was not going to last and continued their spending spree. Some also felt that the exchange rate could be fixed and some of us warned that doing so would result to high inflation.

“And when the problem manifested, a fire-fighting approach was adopted by the CBN which decided to give bailout to states. Because of these responses, the economy witnessed a shock and we thought we could reinvent economic theory and principle as a unique Nigerian approach.”

Soludo also subtly put in a word for resource control by the states, which he said should be allowed to take control of the mineral deposits in their states, and in turn pay taxes to the federal government.

The former CBN boss condemned a situation in which all tiers of government gather in Abuja to share allocations.

“We do not have to be running to Abuja for everything and that was why I was surprised when some people canvassed that local governments should be going to Abuja to take their allocations directly,” he noted.

He was however optimistic that the economic recovery plan recently launched by the Buhari administration would lead to recovery, especially as the elections are close at hand, and there would be pressure on government to perform.

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  • yanju omotodun

    But why are people inviting this man so much nowadays to discuss the economy, is he an economic expertise? Someone who could not perform when he was the cbn governor, I beg keep mute and stop your theoretical economics

    • Anita Kingsley

      They are inviting him because he isn’t highly knowledgeable and knows better than those in power, obviously. Soludo is not someone anyone can put behind in economic issues, he’s a solution provide, which Nigeria should always listen to

    • Cletus Nwaoha

      c nwoha
      soludo is a seasoned economist and made agreat inpact during his tenure as cbn governor. remember the international awards he won and how he was contacted the eu because of his of his success in bank merger programmes that made our banks stronger and was able to withstand the global economic downturn then. nigeria has materials. the present administration should be humble enough to both look for and use them to contribute for the economic well bieng our beloved nation.

      • Balarabe musa

        Cletus, that he won international award doesn’t mean he had excellent performance during his time as the CBN governor. The current CBN governor is far better than him

  • Agbor Chris

    Whenever there’s problem anywhere, everyone automatically becomes solution giver, if Soludo was the CBN governor, Nigeria wouldn’t have escaped recession. I respect him so much, but some things are inevitable, taking over power and inheriting bad economy with no fund (as Buhari claimed) is enough trauma to throw the country into a poor state, we should salute this government’s courage in approaching matters and fixing all the problems they allegedly met.

    • Animashaun Ayodeji

      Will you stop defending Buhari’s government? They claimed they inherited bad economy and met no fund, Ya’adua did not inherit anything better, yet Nigeria didn’t collapse before he died, when Jonathan took over, Nigeria didn’t crash, but when APC came they destroyed Nigeria and blamed everything on corruption in Jonathan’s administration. If Jonathan’s administration was truly corrupt, Nigerians would have suffered more than what we’re currently undergoing in Buhari’s tenure. Soludo has said it all, we have illiterates in power, APC only appears to knowledgeable, but they are not up to the task.

      • Joy Madu

        I support your say Buhari tenure is the worst tenure so far how i wish apc party does not come to existence Nigerian would have been a better country

  • JOHNSON PETER

    Enough of talk Mr soludo, with all your economy prowess, you couldn’t win gubernatorial election in your state because they know you are fake.

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