Tuesday, 20 December 2016

OPINION II How Not To End Recession


HOW NOT TO END RECESSION

       
The last time I checked, people had abruptly become fond of crediting silly jokes, even the one cracked by a-day-old child, to Robert Mugabe – the Zimbabwe president – probably because the said political leader is a known clown. Currently, a day won’t pass without experiencing a certain comic utterance trending on the social media, and when one scrolls down, he would observe the comment is credited to no other person than the man in question.

        
The scenario is related to what is making the rounds in the Nigerian State at the moment. Right now, any misfortune in the country, be it personal or corporate, is wholly attributed to the President Muhammadu Buhari-led government owing to the obvious irregularities the administration is characterized by. No one ought to be penalized for nurturing suchlike insinuation or claim, considering that ‘no smoke without fire’.

        
It would be needless to reiterate that Nigeria is presently undergoing recession that is nearing depression. I’m afraid, if the needful is not put in place as quick as possible, the latter might set in soonest. Hence, sound thinkers cannot fold their arms as the painful and pathetic situation lingers. It is their duty to proffer the needed remedy as well as tender constructive criticism when and where necessary to ensure that the embattled giant of Africa regains its strength.

        
The Federal Government (FG) has promised that the forthcoming 2017 budget, estimated at #7.298 trillion, would pull Nigeria out of recession. This pledge does unequivocally not augur well for the country since the implementation of the 2016 budget of #6.08 trillion is still ongoing, and over 60 per cent of the budget is apparently yet to be implemented. It’s noteworthy that the recession had set in prior to the approval of the 2016 budget; it suffices to say that the said budget ought to possess the capacity to end the lingering pitiable condition.

       
Besides, do not forget in haste that Nigerians were equally promised awhile ago that 2016 budget would end the recession. Intriguingly, the focus has suddenly been shifted to the yet-to-come 2017 budget. How do you reconcile these? This confliction of promises significantly indicates that the actual plight ravaging the country’s economic status is yet to be discovered by those whom are entrusted with the economy. Sure, they may not concur with this candid observation, but it’s a reality.

       
If the truth must be told, I would say the 2016 budget can end this monstrous era once and for all, if the needful is adhered to. Read my lips. The 2016 budget is conspicuously bedevilled by limited funds; hence, the prime problem is not its implementation but how to cough up the required funds. For urgency’s sake, we need to concentrate on realistic issues rather than futuristic ones. This is the only way we can progress, and not regress as it is currently the case. Nigeria has indeed grown of age, thus is required to do things maturely and differently.

        
If we fail to implement the 2016 budget as expected, we will arguably still encounter similar hurdles when the awaited 2017 budget is eventually approved by the National Assembly (NASS). Moreover, a deficit of #2.269 trillion in the 2017 appropriation bill is enough reason to worry about. This implies that Nigeria would continue to live on mere promises whilst thousands of Nigerians are dying and countless firms running into comatose, on a daily basis. Since the NASS is yet to approve the Presidency’s request to borrow $29.9 billion externally, which is in line with the people’s wish, I suggest we look inwards toward sourcing for funds internally. Several stakeholders would be willing to lease, or even donate, to the government; the FG should endeavour to extend hand of fellowship to them; it takes two to tango.

       
Though the FG has thrived relentlessly towards curtailing excesses via the ongoing anti-graft war, a lot still needs to be done. We need to tackle tax evasion headlong by deploying forensic mechanism. Instead of causing the masses more pains by overtaxing them, let’s shift attention to those corporate bodies that have ab initio been dodging payment of taxes. Some inconsequential incentives, such as wardrobe allowance and so on, due most public office holders ought to be put on hold for now till further notice. They should cope with their old wears, or what have you, till we get out of this mess. These measures would enable us to generate huge funds.

       
The FG has often times told Nigerians that the funds returned by the looters were not meant to be utilized since their cases are still in the law court. I beg to differ from this perception. It’s imperative to acknowledge that these monies were not refunded under duress, rather through plea-bargain. So, court proceedings have absolutely nothing to do with monies that were willingly returned by these foes. In fact, the refund is a clear evidence that they are guilty of the crime accused of; in other words, the court hearing is just for an apt conviction to be delivered. Thus, let’s use the funds to service the 2016 budget that is presently wearing a pathetic physiognomy.

        
Above all, we must tackle the ongoing Niger-Delta militancy without further ado. I advocate that the FG should deal directly with the militants, than calling the so-called elders to a roundtable. Hear from the horses’ mouth and stop beating about the bush. We also need to revisit the various existing policies towards making amends. For instance, the oil subsidy has been totally removed from the country’s budgets, hence, there’s a compelling need for a sound alternative policy in this regard. Similarly, President Buhari also needs to reshuffle his cabinet having observed that most of his allies aren’t currently serving where they are meant to.

       
Before I round off, I want to solicit that governments at all levels should, henceforth, start taking the Nigeria’s fiscal year seriously to enable them plan ahead. The country’s fiscal year is between January and December of each Gregorian calendar year. An appropriation bill ought to be ready before august of every year, so that before the end of November, it would be passed as budget by the legislature for the incoming year. Let’s focus on realistic issues, and jettison frivolous ones. Think about it!
 
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