Engages experts
Odigie-Oyegun: Economy in dire state
By Onyebuchi Ezigbo in Abuja and Daji Sani in Yola

There are indications that the transition committee set up by the All Progressives Congress may have decided to work out some tough economic prescriptions for the incoming federal government based on its own independent assessment of the economy amid alleged failure of the incumbent administration’s transition team to share ideas or records, THISDAY has learnt.

The APC transition committee is supposed to interface with the incumbent government’s committee to ensure a smooth changeover from the Peoples Democratic Party government of President Goodluck Jonathan to the APC government of General Muhammadu Buhari. But barely three weeks to the handover date of May 29, APC has alleged that the federal government transition committee is yet to meet or transmit documents to the incoming government’s team. This was said to have prompted the APC transition team to engage experts to study the economic environment and come up with findings that would guide the committee’s recommendations to the Buhari government.

In a related development, the APC national chairman, Chief John Odigie-Oyegun, said yesterday in Yola that the Nigerian economy was on the edge of a precipice and seriously needed financial experts to help fix it and prevent a looming economic collapse. Odigie-Oyegun said this at the seventh graduation ceremony of the American University of Nigeria, Yola.

A reliable source within APC disclosed that based on its preliminary assessment, the 19-man transition panel may consider recommending tough economic measures in a bid to arrest the slide in the economy. The source, who preferred that his name was not mentioned because he was not mandated to discuss the issue, said the committee believed some austere measures might be needed to help the incoming government to keep the country afloat.

The actions being canvassed by the committee include cost-saving measures, like pruning down the size of government and devising means of mopping up resources for the government. Also on the cards is a plan to abolish fuel subsidy, which many see as fraught with corruption.

The source, who is a top chieftain of APC, said an initial assessment of the economic situation showed that things might be worse than what was being portrayed by government.

He said, “I can tell Nigerians that we all in APC will put our heads together to support the captain of the ship, General Muhammadu Buhari, to salvage the nation. It is going to be tough, it is going to be very, very tough, indeed, and we are going to make that clear to Nigerians very soon.

“In the months ahead, we have to borrow money to subsidise the distributable resources going to the states. At present, states are getting about 40 per cent less than what they used to receive from the Federation Account.


http://www.thisdaylive.com/articles/apc-transition-panel-mulls-tough-economic-policies/208950/?utm_medium=twitter

Good idea if the sole aim is for national survival and not to feed the stomach of some party leaders and loyalists. Nigerians can make any sacrifice, and indeed, have been making sacrifices. The problem has always been with those in leadership who have successfully reduced governance in the country to the doctrine of come and chop.

If the economy is in such dire straight, where did the politicians get the money they were throwing at every passerby during the campaigns? What about the money used to service militants and their sponsors? To start with, subsidy should be abolished. Amnesty should be abolished. You can't pay idle youths N65,000 monthly and pay their leaders billions of naira while graduates remain unemployed. Despite all that crude oil is being stolen more than ever. Federal Government should equip the armed forces and let them police the waterways. The refineries should be revived to satisfy local needs. Power reforms should be diligently followed to its conclusion. People in government should stop all the economic gobbledygook and let us have practical governance.

^^^ that subsidy matter that you are mentioning so.the fight that will follow no be small o!

kITATITA:
If the economy is in such dire straight, where did the politicians get the money they were throwing at every passerby during the campaigns? What about the money used to service militants and their sponsors? To start with, subsidy should be abolished. Amnesty should be abolished. You can't pay idle youths N65,000 monthly and pay their leaders billions of naira while graduates remain unemployed. Despite all that crude oil is being stolen more than ever. Federal Government should equip the armed forces and let them police the waterways. The refineries should be revived to satisfy local needs. Power reforms should be diligently followed to its conclusion. People in government should stop all the economic gobbledygook and let us have practical governance.

clears throat!

Good one. I'm in support of anything to cut the cost of governance. Nigeria can bear removal of subsidy if govt shows sincerity and cut down the cost of running itself.

The legislature is our next problem. Media should focus on this arm.

Before you think of removing subsidy, power sector has to be fixed that will drastically ease pressure from pet. products.
When you remove subsidy, NNPC alone will have to be importing products, every major marketer should purchase from NNPC, does NNPC have the capacity to satisfy daily consumption is the million dollar question. ?

baralatie:
^^^ that subsidy matter that you are mentioning so.the fight that will follow no be small o!

If the refineries produce at anything close to 50% installed capacity, there won't be subsidy in the first place. But corruption won't let that be. Have you thought about how the money used for amnesty can be used to provide infrastructure and amenities to the benefit of the inhabitants of the region instead of paying individuals most of who don't even live in the communities.

jpphilips:
Before you think of removing subsidy, power sector has to be fixed that will drastically ease pressure from pet. products.
When you remove subsidy, NNPC alone will have to be importing products, every major marketer should purchase from NNPC, does NNPC have the capacity to satisfy daily consumption is the million dollar question. ?

We shouldn't build our life around importation. The money for six months subsidy can built a refinery.

kITATITA:

If the refineries produce at anything close to 50% installed capacity, there won't be subsidy in the first place. But corruption won't let that be. Have you thought about how the money used for amnesty can be used to provide infrastructure and amenities to the benefit of the inhabitants of the region instead of paying individuals most of who don't even live in the communities.

the four refineries working at 100% will not service the current product demand of 1.2trillion litre of petrol a month.
amnesty,hmmmmm .....it was a choice between 50% revenue loss and a gradual breakdown of a region and provide social welfare(sort of)
the answer are there but like you noted the issue of corruption

kITATITA:

We shouldn't build our life around importation. The money for six months subsidy can built a refinery.

the last refinery (Kaduna) cost $525m(1980-83 price)
fast forward to a 2015 how much do you think it will cost and it takes 3 years to complete.

jpphilips:
Before you think of removing subsidy, power sector has to be fixed that will drastically ease pressure from pet. products.
When you remove subsidy, NNPC alone will have to be importing products, every major marketer should purchase from NNPC, does NNPC have the capacity to satisfy daily consumption is the million dollar question. ?

Funny enough, talking about fuel subsidy removal, I think we are living in the era of no fuel subsidy already, that is considering how much fuel is being sold now. Assuming the govt officially remove subsidy today, will the pump price be any different from what obtains now?

Ijaya123:


Funny enough, talking about fuel subsidy removal, I think we are living in the era of no fuel subsidy already, that is considering how much fuel is being sold now. Assuming the govt officially remove subsidy today, will the pump price be any different from what obtains now?

Depends on your location

jpphilips:


Depends on your location

Don't know of any filling station that sells for less than N100 in Lagos.

Hem! Someone should warn these a fee cee fanatics to avoid excuses, fuel must be forty naira and stable power supply plus rochas must pay all 14 month salary arrears, warn them o, I get hot temper o.

Very well let may 29 come so we can see them start all these things

Ijaya123:


Funny enough, talking about fuel subsidy removal, I think we are living in the era of no fuel subsidy already, that is considering how much fuel is being sold now. Assuming the govt officially remove subsidy today, will the pump price be any different from what obtains now?

It is not about government churning out policies and your ability or inability to adapt to it, it is about we as electorates to fix culpability where it rightly belongs.

kITATITA:

We shouldn't build our life around importation. The money for six months subsidy can built a refinery.

Where will you get the oil to refine?