It is no more drawn out news that Africa’s biggest economy has slipped into retreat after withdrawal in economy development for two successive quarters in 2016.
In what has all the earmarks of being a this feels familiar, It’s the second time that Nigeria’s economy will go into subsidence under President Muhammadu Buhari, first was in 1985 when the resigned general turned government official managed as a military despot and now as fairly chose President.
Numerous have scrutinized Buhari’s treatment of the economy even as his organization keeps on faulting the nation’s monetary hardships for the past government who it guaranteed botched the national treasury and neglected to put something aside for stormy days.
As the blame game continues, citizens groan under poverty, high cost of living and depreciation of the nation’s currency. The masses are the worst hit.
- Use Recovered Funds To Boost Local Manufacturers
The current administration claimed it was winning the war against corruption and has recovered huge sums of money from some elites especially those who served in the previous administration, it is important that these loot which wasn’t budgeted for, be deliberately used to boost local manufacturers to the capacity of exporting local goods. It is sad that the Nigerian economy is a consumption economy, which largely depends on imports; boosting local manufacturers’ capacity with funds, tax holidays and other incentives will encourage Nigerians to patronise made in the Nigeria goods. Inner city policies should be introduced, this will create enabling environment for local manufacturers and encourage foreign investments.
- Reshuffle Cabinet:
There has been debate on whether president Buhari should reshuffle his cabinet members, following harsh economic situation. It will not be out of place for the president to carry out holistic review of his cabinet and determine which ministries or agencies are lagging behind in contributing positively to the economic. It is also critical that the President appoints technocratic as ministers, not politicians.
- Increase Minimum wage:
One thing all economists agreed on as part of solution to recovering from recession is pumping money into the economy. President Buhari, as a matter of urgency should increase minimum wage to boost purchasing power of the citizens. Government can also borrow, provided there is a pay-back structure.
- Cut Government cost including National Assembly:
Although, the present administration claims it was cutting cost, more still needs to be done in this regards. Buhari must ensure that cost of running government is reduced further. Estacode allowances, security votes of the executives and legislative should be deleted. This will ensure huge chunk of the nation’s resources doesn’t end up in the pockets of few politicians.
- Introduce terminal free tax policies and Create Massive Employment
According to data by the National Bureau of Statistics, Nigeria’s unemployment stands at 13.3 per cent as at the end of the second quarter. That represents 26.06 million citizens who are jobless. This is a waste of huge human resources and capital; President Buhari must urgently call his economic managers to a roundtable to find ways of engaging this large number of jobless citizens who could have contributed greatly to the ailing economic.
Government should also introduce terminal free tax policies for foreign investors to encourage more investors to bring monies in within the free tax period, this will also create employment.