Nigeria’s road to economic salvation

Sir: As Nigeria’s economy contracts owing to low oil prices, domestic challenges of being unable to meet previous oil production levels, the country of Champaigne drinkers has been overtaken by recession. The profligacy of the past that attracted luxury goods salesmen and investors has disappeared with the naira being exchanged at N390 per dollar and a pound sterling selling for N500. Everyone now knows we are riding out the worst economic downturn in recent memory.

Prices of domestic goods rocketed with increases inching up to 100 per cent. Foreign exchange shortages and a lack of investor confidence have triggered capital flight. When President Muhammadu Buhari deregulated the oil market a couple of months ago, ending decades of wasteful expenditure on subsidies that benefited the corrupt elite the nation heaved a sigh of relief. This culminated in many workers leaving their gasoline guzzling cars at home in favour of pool vehicles and public transport as an open testimony to the changing times.

Now manufacturers are battling to get foreign exchange to import components and input with many seeing dwindling incomes due to hyper inflation. Indeed, energy supply is more erratic than ever, forcing greater reliance on other expensive sources of power. Traffic to the ports are reducing in the wake of a raft of import restrictions, leading to a decline in customs revenue. Job losses are mounting. Layoffs have spread to the automobile industry as well as the newspaper and the printing industry. Inflation is ravaging at 17 per cent now.

Which is why Buhari has continued to come under attack for his perceived lack of focus, lack of a team of economists to energise the economy. The lackluster performance of the Buhari cabinet and delay in signing the budget has eroded confidence in his competence. The President’s laudable anti-corruption drive has lost its impetus. Upon the storm came the Niger Delta militants wreaking havoc in the oil fields. Attacks on oil installations have cut oil production by half, significantly reducing power supply via cuts in gas pipelines to urban centres.

Undoubtedly, Nigerians have a long road to walk to salvage the nation from the ruins of profligacy, mediocrity and incompetence of its past leaders.

Bayo Ogunmupe,Lagos