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Tough times ahead in post 2015 elections

The 2015 election will certainly come and go but the after effect may linger for a long time. Whether it is PDP or APC that eventually wins the presidential election, the party that will come to power post-election had better get prepared for the handling of the economy. As it stands, the nation is on a financial cliff that can fall off any time except a miracle happens. The one commodity that provides life support for the economy has seen its price at the international market fallen to as low as $58 per barrel.

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What Emefiele, Adeosun must do for Nigeria

This negative GDP growth apparently confirms an earlier statement by the Minister of Information, Alhaji Lai Mohammed that the Federal Government was broke and making tough adjustments. He had said that the decision to increase the pump price of Premium Motor Spirit (PMS) from N86.50 to N145 per litre was one of those decisions to free funds for government’s other financial obligations. By this negative growth rate, the country appears to be on a recessionary track as it requires one more negative growth rate in the next quarter to enter into recession.

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Mr. President: Fiscal federalism’ll end Nigeria’s economic woes

Recently the National Economic Council after its retreat came out with the proposal for the Federal Government to cooperate with state governments in a bid to achieve far-reaching economic goals for the country. In a normal environment where everything is not politicized, the move would have been expected to yield the desired result. Unfortunately, Nigeria is a country where politicians do everything to run down others. If the current government had control in all the states of the federation, the proposal would succeed like success.

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Welcome to the reality: Nigeria is broke

Minister of Information, Lai Mohammed last week said that Nigeria is broke. He spoke to State House correspondents at the end of the Federal Executive Council (FEC) meeting in Abuja. He said the Federal Government took a painful decision by increasing the pump price of petrol from N86.50 to N145 per litre. According to him, the current problem is not about subsidy removal but a result of dwindling income of the government. He said: “The current problem is not really about subsidy removal. It is that Nigeria is broke. Pure and simple!

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EFCC, do your investigation on banks with finesse

Last week’s storming of two banks premises by operatives of the Economic and Financial Crimes Commission, has left in its trail a bitter and sour taste in Nigeria’s financial system. While no Nigerian living or dead would oppose the desire of the present administration to clean up the political arena and rid the nation of corrupt practices, the way and manner the EFCC operatives are going about it especially as it concerns banks, can trigger a financial distress that the government cannot handle.

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Export rubber, cocoa, palm oil to us, EU tells Nigeria?

Last week Wednesday, the European Union (EU) was quoted as asking Nigeria government to increase export of agricultural produces like rubber, cocoa and palm oil to the EU countries. The Head of EU Delegation to Nigeria and ECOWAS, Mr Michel Arrion, said this at a press conference on commemorate the 40 years of EU-Nigeria partnership in Abuja. Arrion said there were potential exports, which Nigeria could develop in commercial quantities, lamenting that such exports to the EU were currently in low quantities.

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Is the National Assembly a budget rubber-stamping body?d

In a Presidential system of government, political theorists have long propounded that separation of power is the chess game at the political arena. It is a known fact that the executive, the legislature and the judiciary act as checks and balances on each other in the system. In budgeting, while the executive proposes the budget, the National Assembly has the responsibility to debate and pass the budget into law for the executive to implement.

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NEC retreat resolutions failed change mantra expectation

The recently held two-day National Economic Council (NEC) Retreat ended with a number of resolutions. The expectation of most Nigerians is that the meeting will come up with an economic agenda that reflects the change in approach to governance and economic management. The retreat started with a fanfare that looked like some serious economic policy outline was going to come out of it. At the end of the meeting, Nigerians were disappointed with the outcome.

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What is wrong with Nigerians?

Nigerians’ taste for foreign goods has been the bane of the economy. Many prefer goods and services from abroad to locally produced ones even when the foreign ones are of lower quality. This has had a serious effect on the nation’s reserves and compounded the unemployment situation in the country. The continued depletion of the external reserves of the nation and the ever growing army of unemployed youths is partly a result of this trend that has bedeviled the Nigerian economy.

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Buhari, a President without economic think tank

In this column in August last year, I had cause to ask how far President Buhari can go in managing a tough economy. There has been growing concerns about this government’s handling of the economy. At the moment, there seems to be no clear cut economic blueprint for which government policies are framed. It appears to me that every minister is working by intuition without any economic guiding principle.

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Nigerians used scarce forex to kill textile industry

In the early 1970’s through to the 1990’s, the Nigerian industrial horizon was dotted with textile manufacturing industries. In the Kaduna-Kano axis, one recalls with nostalgia several large textile companies employing thousands of Nigerians. It used to be an intriguing experience to be close to a textile mill. At the close of business, several employees will be trooping out of the premises of a textile company. It was like a market that has sold out all its wares.

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CBN always at receiving end when FX dries up

The restriction placed by the CBN on 41 items’ access to foreign exchange and Bureaux De Change has generated so much heat that some highly placed Nigerians and foreign investors are calling for drastic action against the CBN. It is quite unfortunate that Nigerians have very short memory. As a young graduate of Economics and a reporter in 1987, some of the issues rearing their ugly heads now were the same issues we reported then. Then as it is now the CBN has always been vilified whenever there is drop in the supply of foreign exchange in the country. The CBN at such critical moment in the economic history of Nigeria had bent over backward in attempt to redeem what looks like a hopeless situation.

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