Osinbajo to head Nigeria’s economic team

• Promises to salvage the economy with difficult’ choices
• KPMG raises the alarm on economic recession
VICE President Yemi Osinbajo (SAN) is to oversee Nigeria’s economy and also co-ordinate the activities of the entire ministries and soon to be inaugurated federal cabinet in addition to his schedule as the Number Two citizen of the country.

This revelation emerged yesterday at the opening plenary of the 21st Nigerian Economic Summit Group (NESG) yearly meeting in Abuja where professionals from all walks of life have congregated to articulate possible quick solutions to Nigeria’s fiscal and monetary challenges in the next three days.

Announcing the new role of Co-ordinator for the Economy attached to his office, Vice President Osinbajo said President Muhammadu Buhari had mandated him to take charge of the economy by supervising the activities of all the ministers and assured Nigerians that with diligent implementation of the tough choices which the administration had already articulated in its economic blueprint, Nigeria’s economy will be prevented from going into a recession.

Meanwhile, in his earlier presentation, a renowned audit firm, KPMG, boss, Mr. Kunle Elebute, had said Nigeria’s economy risks recession if not urgently checked and may end up in total slump, a situation he said, is better imagined than experienced.

Elebute, who noted that the four to five per cent growth rate recorded by Nigeria could still be achieved if timing and sequencing of reforms proposed by the All Progressives Congress (APC) is well articulated, said the negative growth currently being experienced in the country signals a decline, adding that effective utilisation of proceeds of the boom enjoyed in the last 20 years or more should have been used to cushion the effects of oil gloom in the world market.

We’ve had a boom for more than 20 years. Nigerian economy is in decline. We may end up in recession if we don’t take steps to reverse the trend. And from recession, we may end up in a slump. We need to start driving growth on sustainable basis. Timing is of the essence in the reforms that government wants to champion. We need to have fiscal multipliers and increase inputs under our control such as taxes in order to provide efficient services”, he said.

But Osinbajo while reacting to concerns raised by some Nigerians and in fact the alarm raised by Elebute, said the APC-led government would work hard to stabilise the country, saying long-term and short-term measures have been put in place to stabilise the country.

The Vice President, who represented President Muhammadu Buhari at the summit, stated that he had been given the mandate to supervise the nation’s economy to ensure rapid recovery, adding that the Federal Government is currently partnering with seven state governments on developing agricultural and mineral resources domicile in their domains to boost GDP. He said what Nigerians want to see is better life for majority of people of the country, and that the President and himself had decided to set examples by declaring their assets publicly to send a message that the government of the day is one that is built on trust and integrity.

On the issue of time running out before the government is able to effect change, the VP said the government of the day was determined to actualise promises to better the lives of Nigerians.

On the fight against corruption, the Vice President said government is determined to deal with the menace through top to bottom approach, saying that government recognises that corruption is not only in the public sector but in the private sector and is doing all that is necessary to encourage free operations of the nation’s anti-graft organisations in the country to effectively fight corruption.

Elebute stressed that in developed countries, huge percentage of the Gross Domestic Product (GDP) is usually invested in infrastructure development, as opposed to 10 per cent spent on infrastructure in the country, adding that the country’s taxation system is still below world standards.

He said what Nigeria needed to do to stave off recession is to eliminate revenue leakages in addition to diversifying the economy and making sure reforms are effected in key sub-sectors such as education and health to encourage growth of the economy.

The KPMG boss stated that Nigeria is better off if the railways, airports and the ports are run by private investors, as this will increase efficiency and revenue levels where government can collect taxes to provide better services.