RECESSION: Presidency Says Nigerians Paying For Jonathan's Recklessness, Corruption

The presidency in Nigeria says it will not close its eyes to what it calls

the poor performance of the past administration so as not to repeat their

mistakes.
A statement by a spokesman for President Muhammadu Buhari, Mr Garuba

Shehu, said the economy was broken by the Goodluck Jonathan administration

and that Nigerians must bear the pains of fixing it.

The Friday's statement is coming few days after it became official that

the oil-rich nation's economy has glided into recession.

According to Mr Shehu, the past administration engaged in mismanagement

and corruption rather than investing in infrastructure development like

seaports, airports, power plants, railways roads and housing, when oil

price was $140 per barrel.
He also observed that no savings were made by the past administration

unlike other countries like Qatar, Saudi Arabia and Norway.

Other factors which he named that had contributed to the nature of the

economy, include heavy borrowing by the past administration, issues he

stressed that past governors of the Central Bank warned the government

about but were ignored.
He further stated that the past administration could not investigate the

military spending, the federal payroll which had over 40,000 ghost

workers, wasteful expenses like first class travel and private jets for

official trips.
The President's spokesman said the present administration was focusing on

job creation using agriculture, solid minerals and manufacturing which

were abandoned when oil price was $140 per barrel.
“To compound the problem, the previous government was borrowing heavily

and owed contractors, and international oil companies. When this

government took over we had accumulated debt back to the level it was

before the Paris Club Debt Forgiveness,” the statement further read.

Mr Shehu said: “Now that the oil has fallen as low as US$28 per barrel, it

is very difficult to do what is needed but they must be done to save

Nigeria. There is no other way if we want to be honest”.

He claimed that while terrorism and social unrest were growing, real

development was lacking.
The spokesman for the President further promised that Nigeria would return

to growth in a sustainable manner and expressed optimism that the positive

impact of the work of the Buhari administration would soon begin to show.

Read full statement below
WHAT IS PRESIDENT BUHARI DOING WITH THE ECONOMY?
Garba Shehu, Senior Special Assistant to the President (Media and Publicity)

LET me start by asking an important question: who wants to kill racy

introspection?
There is a cacophony of voices telling the Muhammadu Buhari administration

to close its eyes to the past; that given the enormous tasks that lie

ahead, history and its consequences for our nation should be the least of

the government's preoccupation at this juncture.
I disagree. Let us keep a fiery memory of the past so that we don't repeat

its mistakes. Look back, look ahead. The future must of necessity be built

on the foundations of the past.
The Conservative Party took power in Britain six years ago from Labour.

Check the British press, they are talking about Labour 24/7, is anyone

complaining?
Japheth Omojuwa, one of Nigeria's top three influencers seemed tasked in

his patience reacting to calls that we must stop talking about the

immediate past administration in this country. “People are still talking

about who ran governments in 1865 you want us to forget those who left

government last year? (Expletive)”
Music icon, Fela Anikulapo Kuti, who many agree was a philosopher

disguised as Afro-musician taught in one of his songs that without knowing

where you are coming from, you won't know where you are going. Wise men

say that the empty can doesn't disappear by simply kicking it down the

road.
To avoid repeating the past mistakes, Nigerians must come to terms with

what went wrong with the past, how bad were things, what was done wrongly,

what the past government should have done, before we come to what needs to

be done to right those wrongs. Believe me, episodes from the Jonathan era

can fill books, and other possibilities such as courtroom drama thriller.

Against this backdrop, I sought to hear our erudite Finance Minister Kemi

Adeosun on where we are coming from, vis-a-vis the administration's chosen

path to recovery and accelerated growth. What is the administration doing

to revitalize the economy? She spoke at length on the many measures being

put in place, many of which are not glamorous. They of necessity come with

pain. Why should Nigerians be asked to endure pains? Why should they be

asked to make adjustments?
The simple explanation is that the economy was broken, and just as they do

the broken leg, you must bear the pain of fixing it. The current situation

was caused by years of mismanagement and corruption.

As explained by President Buhari again and again, trumpeted by Madam

Adeosun and other senior officials, we solely relied on oil, the price of

which was as high as US$140 per barrel. Government simply reticulated oil

revenue through personal spending by corrupt leaders, wasteful expenses

and salaries. This was done rather than investing in what would grow the

economy. Economies grow due to capital investment in assets like seaports,

airports, power plants, railways, roads and housing. Nigeria has not

recorded a single major infrastructural project in the last 10 years. In

short the money was mismanaged.
In addition to failing to spend money on what was needed, no savings were

made by Government unlike other countries like Qatar, Saudi Arabia and

Norway.
To compound the problem, the previous government was borrowing heavily and

owed contractors, and international oil companies. When this government

took over we had accumulated debt back to the level it was before the

Paris Club Debt Forgiveness.
All these factors were building up to Nigeria heading for a major crisis

if the price of oil fell. Nigeria did not have fiscal buffers to withstand

an oil shock.
The oil shock should and could have been foreseen. These are matters that

both the Emir of Kano, Muhammadu Sanusi II and Professor Chukwuma Soludo,

both of them eminent former Central Bank Governors had occasions to warn

the government of the day about, but they were clobbered. The dire warning

was written all over the wall, but they were ignored by Nigeria's economic

managers.
What should they have done?
They should have had the courage and vision to do as the present

administration is doing through the Economic Team, the Ministry of Finance

under Madam Adeosun and the various agencies of the state to envision a

better future by first of all fighting corruption. Look at what a civilian

administration is today doing to the military, investigating their finance

and accounts that the military could not do to themselves.

See what the current administration is doing sanitize the huge salary bill

by eliminating payroll fraud. So far, the federal payroll has been rid of

about 40,000 ghost workers. More than eight billion Naira stolen monthly

has been saved.
We are also saving on wasteful expenses like First Class Travel and

Private jets for official trips.
The federal government is not limiting the reforms to the centre but

forcing State Governments to reform their spending and build savings or

investments.
Government is also increasing spending on capital projects especially on

infrastructure needed to make Nigerian businesses competitive and create

jobs. The administration is at the same time blocking leakages that

allowed government revenues to be siphoned into private hands.

Currently, there is focus on key sectors (apart from oil) that can create

jobs and or generate revenue such as Agriculture, Solid Minerals and

Manufacturing. If these things had been done when the oil price was as

high as US$140 per barrel, Nigeria would not be in the current

predicament. We would not be suffering now if we had no cash reserves but

we had regular supply of power, a good rail system, good roads and good

housing.
Now that the oil has fallen as low as US$28 per barrel, it is very

difficult to do what is needed but they must be done to save Nigeria.

There is no other way if we want to be honest.
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