Nigeria’s economic climate has become a topical issue for experts and stake holders. Several analysts including officials from the International Monetary Fund (IMF) foresee a doom before the year runs out.
However, President of the Nigeria Economic Society, Prof. Ben Aigbokhan, who is also an economist, has predicted that Nigeria’s economy would recover from depression as soon as possible. Prof. Ben said this based on the measures being put in place by President Muhammadu Buhari.
He gave reasons why Nigerians should not be worried; some of which are listed below.
Fund will Be released for Capital Project
Prof Ben believes that before the year runs out, more funds will be released by President Muhammdu Buhari for the execution of projects. He said`I think between now and the last quarter the government is going to release some amount of money for the capital projects.
“So, the government will want to be seen doing something, that is why I’m optimistic that the country will come out of recession,’’ he said.
Reduction In Avengers Attack
Prof Ben believes the Niger Delta avengers will reach a seize fire agreement with the federal government. The recent attack on pipeline by the Niger Delta Avengers has drastically affect Nigeria’s oil output. A negotiation will definitely result in a seize fire. President Buhari will most likely revisit the Amnesty Programme put in place by former president Musa Yar’adua.
Increase In Oil Production
Prof. Ben believes that oil production will increase subsequently, if the federal government negotiate with the Avengers in time.
“One, oil production is picking up, and the rate of avengers destroying oil pipelines has reduced or at least is reducing.”
“Also with the oil production picking up, some more revenue will be coming in gradually.” He said.
IMF Forecast Might be Inaccurate
Prof Ben believes the forecast made by the International Monetary Fund (IMF) might have been a little bit exaggerated. Aigbokhan said: “I am not as pessimistic as the IMF, you know how IMF forecast do go; sometimes they use it to put pressure on government to act.
He said that the economy might decline by one per cent but would not get to minus 1.8 per cent as predicted by IMF.
The economist opined that President Buhari’s talking about the economic situation was a sign that he wanted to shed off some of this image of in-activity and in-action.
Oil Revenue Must be Spent on Development Projects
For a developing country like Nigeria, there is no greater time than now to actually develop our communities. Development projects pave way for employment and availability of funds. Prof Ben believes the government should work towards implementing the projects proposed in the 2016 budget.
Prof. Ben said “I don’t expect government to spend the revenue on social things but government should spend it on developmental projects”.
He stated that the release of funds for capital projects would enhance some level of growth in the nation’s economy.
If all of the aforementioned reasons can be taken into consideration, the economy will no doubt experience a huge amount of growth by the end of the year