The Minister of Finance, Mrs. Kemi Adeosun has finally confessed that the Nigerian economy is in recession even though I had argued that the economy was already in recession long before now.

Mrs. Adeosun further mentioned the measures that are being taken and assured that the economy will turn around for the better shortly. ‎It is pertinent to state that Nigeria’s economy finally fell into recession because the Buhari government has no concrete plan of action as far as the economy is concerned

Since the inauguration of the Muhammadu Buhari administration ‎on May 29, 2015, the president is yet to announce an economic plan and map out the policy direction for the government to address the economic problems it faces with the fall in price of crude oil and the looting of the Nigerian treasury by corrupt public office holders.

According to the National Bureau of Statistics, inflation rate is now 16.5per cent and this was occasioned by the rise in energy cost which most Nigerians failed to kick against when government decided to increase the price per litre of refined petroleum products such as petrol, diesel and kerosene which now sell for 145 Naira, 200 Naira and 300 Naira respectively. Now, this has had a heavy toll on people’s welfare and
living standards.

The negative economic growth for both Q1 and Q2 in 2016, the high rate of unemployment, high level of poverty and the high exchange rate shows that the Buhari administration cannot afford to handle the economy with prejudice and nonchalance. These economic indices must not be left the way they are and not made worse. Nigeria’s economy will not recover by itself as government had hoped and wished for. The Buhari government must know this and take appropriate action. The only way the populace can be sure that government is taking the right steps towards economic recovery is when we begin to see positive signs and improvements in the economic indices.

Nigerians should no longer be fooled with statement from the Buhari administration officials that ‎government is committed to reviving the economy.Having left the economy to recover by itself for over one year, the CBN governor, Godwin Emefiele announced a new foreign exchange policy regime -a move that was expected to salvage the situation.

Obviously, the Buhari administration needs help and must be bold enough to appoint the best minds as well as economic experts to guide the process of economic recovery irrespective of their political leanings. It will be foolhardy for the present government to run the economy based on unfounded beliefs and prejudices.The CBN under the leadership of Godwin Emefiele has decided to take the back seat on reviving the economy and watch the body language of the President. The CBN is afraid of coming up with solutions

Acknowledging that the economy is in dire straits, the Buhari administration provided a stimulus package to the states in order to enable them pay workers’ salaries. There are allegations that the states did not use the monies for the said purpose. Obviously, the stimulus package alone is not enough to revive the ailing states.

The National Assembly is too embroiled in different scandals that the revival of the economy is not top on its agenda. Revelations made by Abdulmumuni Jibrin, showed that most Nigerian legislators are only concerned about their private pockets rather than working in the interest of poor Nigerians. The Buhari administration through the Secretary to the Federal Government, Babachir Lawal made matters worse when he truthfully admitted that the 2016 budget would not be fully implemented due to a 40
per cent drop in government revenue. All these indicate that poor Nigerians are in for a prolonged economic battle with no strong leadership, concrete plans and policy direction to revive the economy over the short, medium and long terms.

However, governments at all levels have to sit up now that we have finally confessed and admitted that the economy is in recession.‎ President Buhari needs to increase the tax net, cut down the cost of governance by 50 per cent, expand the agricultural sector and create jobs under an agricultural youth empowerment programme, expand the mining sector, encourage the export of Nigerian products and strengthen the manufacturing sector.

The president has to encourage farming across the country by recruiting about 10 million farm workers yearly who will be registered under the government’s agricultural expansion scheme. Buhari administration must as a matter of urgency initiate a new power project as well as review the National Independent Power Project (NIPP) in order to jump-start the economy and create the avenue for the resuscitation of the manufacturing sector. Government should also revive the textile and clothing industry and provide players in this industry with tax cuts and incentives in order to meet the needs of millions who have to depend on the importation of textiles year in year out.

The present recession is a consequence of lack of concrete plan of action as well as the belief and hope that the economy would recover by itself over time.However, the Buhari administration must be commended for telling Nigerians the truth. It only needs a strong economic plan and policy direction in order to overcome the current crisis and lay a strong foundation for long-term growth.
• Aregbeshola is the author of “Nigerian Political Parties and Politicians:Winding Road from Country to Nation.’’