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Nigerian economists say economy heading for recession

Nigerian economists say economy heading for recession

The Nigerian Economists Society, NES, has faulted the flexible exchange rate policy introduced by the Central Bank of Nigeria, CBN, saying such policy cannot work in an import dependent country like Nigeria.

The NES also warned that the Nigerian economy was fast sliding into recession on account of its import dependency, decline in foreign exchange and double digit inflation.

These were stated by the NES at a one-day symposium on the theme: ‘Managing the naira’, adding that other factors such as mass poverty, insecurity, widespread corruption, and collapse of infrastructure are signals that recession was setting in.

In a communique issued at the end of the symposium at the weekend, the economists insisted that the economic woes of the country is being compounded by a poor local production structure and high-level consumption of foreign goods and services, adding that the current foreign exchange policy was not an option is such a situation.

“The new foreign exchange policy, which implies that the exchange rate will be determined by market forces (clean float) is faulted as it admonishes a spot and forwards, assumes the economy is sophisticated and productive in producing needed goods and services typically of the advanced economies”, the NES said.

By Timothy Enietan-Matthews…

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