Abdulaziz Yari, chairman of
Nigeria Governors’ Forum (NGF), has warned incoming governors to be prepared
for another cycle of recession.
Speaking at the opening the
ceremony of an induction programme for newly-elected and returning governors in
Abuja, Yari who is the governor of Zamfara, said there is a possibility of a
recession by the mid-2020 till third quarter of 2021.
In August 2016, Nigeria entered
its first recession in more than two decades.
The gross domestic product had
contracted by 3.06 per cent in the first quarter and shrunk by 0.36 per cent in
the second quarter.
Yari said the outgoing governors
have agreed that borrowing is not a good means of solving economic problems.
He urged the incoming governors
to multiply revenue generation base so as to “change the course of doing
government business for the betterment of the people”.
The NGF chair told the governors
and incoming ones that it will not be smooth ride as they begin a new
administration.
“On our part, we made a lot of
achievements in infrastructural development and provision of social services
because we enjoyed a relatively high oil price of about $100 to $114 per barrel
between 2001 and the middle of 2014,” he said.
“However, by the mid-2014, the
price of crude oil, which is sadly the main driving force of government’s
expenditure, dropped to $75 per barrel. It, therefore, became very difficult
for many states to even pay salaries of their workers.
“This scenario is a wake-up call
for all of you to come amply prepared to face these kinds of challenges
especially since we are expecting the possibility of another cycle of recession
by mid-2020 and which may last up to third quarter of 2021.
“Your good spirit of stewardship
will make you contain the situation should there be one. Also, as members of
the National Economic Council, you must work hand in hand to boost the economy
in tandem with the global best practices.
“Experience, they say, is the
best teacher. Ours has been a challenging experience of managing state
economies that are totally dependency on accruals from the federation account
rather than exploring viable alternatives to run the economy.
“For most of the states,
internally generated revenue (IGR) are nothing to write home about. You must,
therefore, look inward by boosting your revenue generation base and also
utilize them effectively for execution of projects that would touch the lives
of your people. You must not forget the high expectations of our people on us;
now that the democracy is maturing day in day out the challenges of governance
and service delivery are more demanding.”
He also urged the incoming
governors to strengthen tax laws and encourage Nigerians to pay their taxes.
“It is unfortunate that our
people have a very negative attitude to payment of taxes in full, including
corporate agencies,” he said.
“My take on this is that, as a
country with over 200 million people, our individual and collective
contributions in ensuring prompt payment of taxes can help the government
achieve all its objectives. For us to achieve these responsibilities, we have
to strengthen our tax laws and to make them very effective in our task of
building a better Nigeria.
“If the necessary measures are
put in place to provide a working system, I am certain that at the end of the
day, we are going to succeed in tackling unemployment, reducing poverty,
ensuring food security and disease control as well as building a nation with a
robust economy.”
In his remarks, Vice-President
Yemi Osinbajo reminded the returning and incoming governors that the nation
still battles poverty, malnutrition, illiteracy, out-of-school children etc.
He challenged states to to boost
their IGR and value added tax (VAT) in respective states in order to address the
numerous issues.
He also said the national
executive council would begin to look at more ways to effectively fund security
in the country.
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