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Friday 2 September 2016

Recession: Buhari's administration is just paying lip service to the issue of diversification- PDP

According to PDP, the Buhari-led administration is just paying lip service to the issue of diversification of the economy. The party said this while reacting to a recent comment by the Minister of Finance, Kemi Adeosun, that the only way Nigeria can get out of this present economic recession is to diversify the economy and also maintain fiscal discipline. Read the party's statement signed by its Director, New Media, Deji Adeyanju, after the cut...


"Yesterday, the Minister of Finance, Mrs. Kemi Adeosun, stated that the Muhammadu Buhari administration will focus on two policies to remove Nigeria from recession- fiscal discipline & diversification. Firstly, we believe a recession is not reversed by diversification. A recession is reversed by implementing a stimulus package designed to cut taxes, reduce the cost of doing business & boost spending on infrastructure & other critical sectors of the economy. Available data shows that the Buhari administration has spent a meagre 19% of the allocation for CAPEX in #Budget2016. This sort of spending will not make any sort of impact on the economy. Assuming but not conceding that Mrs Adeosun is right, the challenge is the past 15 months show that despite the glib talk the Buhari administration is doing neither. For instance, despite claims of weeding out ghost workers from the payroll & reducing the civil service wage bill, Nigeria’s wage bill increased from N1.65tr in 2014 to N1.83tr and N1.71tr in 2015 & 2016 respectively. These figures represent a combined total increase of N240bn from the wage bill in 2014. Two days ago, the Central Bank of Nigeria (CBN) released its economic report for Q2 2016 which showed that the FG incurred a N1.09tr deficit for the quarter. This deficit was 96% higher than the N555.49b allowed. Total expenditure for this period stood at N1.76 trillion, surpassing the provisional quarterly budget estimate by 12.8%, representing a 58.1% increase of the Q1 expenditure.
These figures show an abject lack of fiscal discipline in the management of the Nation’s finances by the Buhari administration. On diversification, GDP figures released by the Nigerian Bureau of Statistics (NBS) yesterday show that the Buhari administration is doing significant harm to non-oil sectors of the economy. Some of those figures include: Non oil GDP contracted by -0.38% in Q2 2016 from -0.18% in Q1 2016 and 3.46% in Q2 2015. Furthermore, CBN figures show that non-oil export fell by 43.2% to $576.97m in Q2 2016. As the data shows, even sectors that experienced growth in Q2 have slowed considerably compared to Q1 2016 & Q2 2015. As these figures show, the Buhari administration is just paying lip service to the issue of diversification & is in fact worsening the non-oil sectors of the economy. These figures also show that Mrs. Adeosun’s comments about fiscal discipline & diversification are empty rhetoric. We reiterate our position that this government is out of depth & is incapable of reversing the economic recession into which they have plunged our nation. God bless Nigeria, especially in these difficult times.

37 comments:

  1. Replies
    1. The PDP is offering solutions...the President needs to embrace opposition so they can help him out instead of attacking them...otherwise,he can give way to the opposition party to rule again...they see the lapses in the party and can only do better....this is very good from d PDP

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    2. Lol @pdp offering solutions. They were there before the regime came in. Was the country better then? Lol

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  2. Professional criticisms by PDP without name calling. APC can learn how to debate facts and stop all their childish name calling. If both parties can learn to do that, that is debate facts Nigeria will survive.

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  3. Thank u pdp.
    Well spoken pdp even thou that u people are the same.
    TERRORIST BUHARI AND ALL HIS PRIMARY 1 CLASS MATE IN ASO ROCK DON'T EVEN UNDERSTAND THE WORD RECESSION TELL ME HOW THE WILL SOLVE IT HUH?
    Nigeria economy will remain like this till this man that think that to rule is by forming boko harams will leave aso rock.
    BRING BACK OUR HEAVENLY CORRUPTION ILLITERATE MAN AN TAKE BACK UR SATANIC ISLAMIC CHANGE OF HELL OO


















    #sad indeed

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  4. Thank u pdp.
    Well spoken pdp even thou that u people are the same.
    TERRORIST BUHARI AND ALL HIS PRIMARY 1 CLASS MATE IN ASO ROCK DON'T EVEN UNDERSTAND THE WORD RECESSION TELL ME HOW THE WILL SOLVE IT HUH?
    Nigeria economy will remain like this till this man that think that to rule is by forming boko harams will leave aso rock.
    BRING BACK OUR HEAVENLY CORRUPTION ILLITERATE MAN AN TAKE BACK UR SATANIC ISLAMIC CHANGE OF HELL OO


















    #sad indeed

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  5. PDP has replied the Chairman of APC who in a statement released by his media aide, Segun Dipe, said the opposition party lacked the moral basis to comment on the current state of the economy since the party's policies brought the country to its present state.

    PDP in its reply, listed the economic indices of Nigeria before the Buhari-led government came in. The party stated that President Buhari's performance thus far has been shambolic and has revered the gains they made when they were in power. Read the statement after the cut...

    We read the statement by Chief John Oyegun, chairman of APC, to the effect that PDP has no right to speak about President Buhari's economic failures & felt compelled to respond for record purposes. First of all, Section S39 CFRN guarantees all Nigerians the right to freedom of expression. Chief Oyegun and his party would do well to stop its many attempts at violating this right. Secondly, we will not follow Chief Oyegun’s path by responding with an invective rejoinder. However, as lawyers say, we will let the facts speak for themselves. For the avoidance of doubt these are some of the economic indices inherited by the Buhari admin:

    a. No 1 destination for Foreign Investment in Nigeria with $395m in investments in Q1 2015 alone.

    b. Inflation at single digit interest rates for several years. It was 9.6% at the inception of the @MBuhari admin.

    c. A GDP that had grown at an average of 8% p/a in the last 10 years. Nigeria is currently experiencing its first negative GDP growth since the return of Democracy in 1999.

    d. A telecoms sector that has received more than $32b in investment since 2001.

    e. The largest economy in African valued at over $500b.

    f. An economy that was managing successfully dealing with its unemployment challenges

    g. An economy that had successfully increased per capita income from $299.4 in 1999 to $2640 in 2015.



    h. A stock market valued at N11.66t. The Nigerian Stock market has lost more than N1.3t of its value since the inception of the Buhari admin.

    i. An economy that had reduced its food import bill from well over N1t to N684.7 billion as at December 2013 & and was on target to meet its target of producing 20million MT of food annually.

    j. An economy that was diversifying by exponentially increasing non-oil revenue for the federation.



    k. A successfully unbundled power sector with an inductive environment for investment.
    l. An economy that had successfully reduced its personnel cost over the last 5 years.

    m. Several tools for combating corruption such as IPPIS, TSA, GIFMIS, EFCC & ICPC.

    In the past year, the APC led FG has detained & publicly accused Col. Sambo Dasuki & members of our party for corruption. We find it surprising that the FG is asking for secret trials for the accused persons. We urge the FG to try them openly & in respect for the rule of law. We feel compelled to remind Chief Oyegun that not all monies generated from crude oil sales accrue to the Federal Government. Monies from crude sales accrue to Nigeria & its various JV partners. What accrues to Nigeria is then shared between the FG, States & LGAs subject to the deduction of operational expenses. It is either a rookie mistake, or deliberate misrepresentation to state that the Jonathan admin could not account for money it is under no obligation to account for. Having said that, we urge the @MBuhari admin to audit NNPC if he feels the need to & to prosecute anyone found guilty of misappropriation of public funds according to the law. There are NO economic indices anywhere in the world by which the Buhari admin can be rated better than ours’. His performance as President thus far has been shambolic and on a daily basis he reverses the gains we have made. Chief Oyegun should be reminded that we handed over a significantly better Nigeria to Buhari than we received from the military. Chief Oyegun should also be reminded that president played a significan

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  6. Dey need our support now


    ...merited happiness

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  7. JEMBETE(KEY-POINT)2 September 2016 at 12:42

    TANK U VERY MUCH, NIGERIANS NO EVEN NID FIGURES N TABLES TO PROVE, WE DE SI AM WIT OUR OWN NAKED EYES, ABI NA FIGURE DE LET US KNO FROM VILLAGE SAY RICE NA:

    RICE NOW NA 20K?, FERTILIZER OF 2K NA 12K?, FUEL OF 87 NA 145?, KERO OF 50 NA 230?, DEZIL OF 120 NA 190? TAX OF 5% NA 15%? OR TSA GET OVER 4 TRILLION BUT NO BUDGET MONI RELIS?,

    BUDGET OF CHANGE STILL DE FO BUHARI HAND,

    LAST ADMINISTRATION CRATE 2.3 MILLION WORK BUT DIS ADMINISTRATION RENDERED 4.3 MILLION WORKERS, JOBLESS,

    B4, CBN, FIRS, POLICE, CUSTOM DE DO ADVERT FO EMPLOYMENT BUT NOW NA BACK DOOR EMPLOYMENT.

    DOLLAR NA 187 BUT NOW NA 420,
    FOR MORETHAN A YEAR NOW, NO PROJECT.
    ABI NA D PDP GO MAKE US KNO SAY CHIBOK GIRL STILL DE FO ALMOST 2YRS WIT GENERAL AS PRESIDENT?

    APC IDIOT, UNA JUST DE BLAB, SOME APC MEMBERS DE SAY SO LONG NO BOKO HARAM, BUHARI DUNG FULFIL HIM PROMISE, I JUST DE PITI D MAN WEY TOK AM BCOS HIM SENSE DE HIM LEG.

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  8. These are competent people,pls tell them clueless APC Chain bunch! They should listen or keep deceiving those who care to listen...

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    Replies
    1. Kudos to the pdp! Buhari and the Apc should keep deceiving themselves thinking it is me that they are deceiving

      Na me talk am!

      Long Live Lib!!!

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  9. The PDP lacks any moral right to judge the president who is barely a year in office. This recession was imminent, giving that for over 16years of PDP leadership,we failed to diversify and now we're paying the price because of the slump in crude oil price. Diversification of the economy cannot be achieved overnight and to think they compounded our woes by the massive looting we witnessed under their leadership.
    We're optimistic that it will get better after this temporal hardship.



    . ~BONARIO~says so via NOKIA LUMIA

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    Replies
    1. Ur such a fool to blame PDP again....they are offering ideas...yet u do the name calling AGAIN...u have a big problem and it is social media...it has taken away your brain in reality...u don't knw when to pull d brakes...sorry man,no one here is blaming the PDP...u r on ur own

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    2. Please check how much was oil price when obj became president. Is Nigeria the only country hit by global oil price... Don't even try to say don't even say it's too early to judge PMB.... In case u have forgotten 7months after Jonathan won election he was general criticised on his economic direction (eg; oil subsidy). You can google how many Prime minister Australia has had in 3years since 2012. No time to give to give grave to incompetent national head.

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    3. Come this guy . Must u talk. Are u this dull? Be there and be thinking about temporal . Ur eye go shock you

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    4. Bonified fool!oga sir inside d 16years of pdp waste.where u hungry?u buy fuel for 145.mumu 16 years buhaha and besides apc is constituted by 90% former pdp members.mumu

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  10. Time shall tell. Linda take note!

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  11. if only the Daura Dullard was literate, he might have taken a cue from this to improve the economy... Kemi Adeosum should go and beg Ngozi Okonjo Iweala to teach her how to plan a complex economy such as Nigeria's..

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  12. Did the youngest richest man on earth pay any attention to these old foolish leaders when he came to their country????????????????
    Old menn that lack wisdom how would the country move forward,u substitute a 50 something yr old for a 70 year old zuckerberg knows they have nothing to offer i hope they all noticed the polite way he ignored nig govt.

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  13. Pdp pls take several seats. U are not any better.

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  14. Enter your comment... Did you read the analysis?

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  15. See pdp talking rubbish why not do it those 16yrs..nuel

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    Replies
    1. Mumu u have come again!inside d 16 years u were hungrry?mumu and d apc is made up of saints!that one concern una if u ppl like u do d right thing or not na una go suffer am.as far as we in the south is concerned so far oil dey our land,oil companies are still drilling,and have to employ indigens na una go suffer!until then we are good.biggest idiot

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  16. Bonario hide ur face in this shame APC av created. They got no plans at all even till 2019. This is Sept 2016 and they still keep blaming GEJ.. it's quite shameful!

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  17. So because they were unable to put things in order in 16 years means that if a true solution comes from PDP we should over look, when things are falling apart. We need to allow APC or give APC to run down the system for the next 16 years before we open our eyes that our economy is not moving forward. Is it not possible that PDP has gone to the drawing board to restructure and put things right or is the party affiliated with the devil that can't change. If they have the solution let's embrace it , this is not competition but how to move out nation forward.

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  18. a.k.a EDWIN CHINEDU AZUBUKO said...
    .
    We are suffering neh no lie....
    .
    .
    ***CURRENTLY IN JUPITER***

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  19. Nigeria's leaders are the most brain-dead pack; and are being led by a man straight from the horror movies, Buhari!

    Diversification is the silly romantic scheme, which Buhari and his co-travelers in the APC use for masturbation like dildos and vibrators!!!

    And to think they are talking about diversification in one breath, while resisting the call for restructuring in another breath, is quite amazing....

    Buhari and his goons are idiots...they have nothing to offer.........

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  20. Rather than Bandying figures,  I will advise Deji Adeyanju to acquaint himself with the activities of govt in the line of diversification.
     
    Contrary to his erroneous claim, the govt recently launched “The Green Alternative’’ which is the roadmap for Sustainable business of Agriculture. Just on  Wednesday(2 days ago), the Federal Executive Council(FEC) approved the roadmap for Solid Minerals devpt with an Independent regulatory body to oversee the affairs of the Solid Minerals industry.
     
    The diversification plan is not a lipservice as wrongly claimed. It is the way to go and it is now a must  as oil income has become very volatile.
     
    Diversification is a long terrn sustainable option which has a gestation period. It is not magic.Oil was discovered in Nigeria in 1956 and the first oil production started two years after -1958.
    Just as we had to wait for two years to earn income from oil in 1958 after discovering the oil in 1956, we might need to wait for some time before we start reaping the dividends of diversification into solid minerals and agriculture.
     
    The President is fully aware of the need to allocate more funds to agriculture to boost d diversification plans. It is no surprise that he mentioned in his last trip to Kenya that there will be more capital votes for Agriculture in the 2017 Budget. Ditto for Solid Minerals. Perhaps, Deji and PDP are oblivious or ignorant of this.
     
    I am fully confident that the economy will return to the path of recovery in no too distant future.
     
    On the fallacious claims made by Deji and his faction of the PDP on the Recession in Nigeria, I will address that with incontrovertible facts along the timelines in my next post.

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  21. NIGERIA'S JOURNEY TO RECESSION

    The fortunes of a mono-product economy like Nigeria is usually very vulnerable to swings in d revenue frm such product. Oil was discovered in Nigeria in 1956(60yrs ago) & Oil production started in 1958(58yrs ago), meaning that Nigeria has been earning oil revenue for 58yrs.

    Strangely, after 58yrs, Oil still remains our mainstream source of income, providing 70% of our Revenue & 90% of our FX. It is unthinkable that we did not explore other areas of the economy to diversify our income, thus leaving the fate of 170m Nigerians to whatever happens to oil.

    It is no longer news dat Nigeria is now in Recession, what is however d big news is dat the ''Highway to Recession" was fully constructed & commissioned in d 2nd Quarter(Q2) of 2014 when d Oil Price Started Crashing. Since then, Nigeria's GDP has been on a persistent decline which has culminated into today's Recession. Check dis out :

    2014 GDP GROWTH RATE
    Q2  - 6.54%
    Q3 -  6.23%
    Q4 -  5.94%
    2015 GDP GROWTH RATE
    Q1 - 3.96%
    Q2 - 2.35%
    Q3 - 2.84%
    Q4 - 2.11%

    2016 GDP GROWTH RATE
    Q1 - (-0.36%)
    Q2 - (-2.06%)

    The NBS described Nigeria's Recession as "Oil-Revenue-Misfortune-Induced"

    THE WAY FORWARD
    The govt must aggressively implement d diversification plans esp in d recently launched roadmap for Agric & Solid Materials. Also, d monetary policy authorities must adopt measures that are in sync with d current economic realities.

    God Bless Nigeria




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  22. JOYOUS BABE,Linda Ikeji first Cousin2 September 2016 at 16:25

    APC is a visionless party, they don,t know anything.

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  23. So says PDTHIEVES.

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  24. APC should surrender power if they're clueless on how to revamp the economy and let people who knows help us out of this recession they've sunk the country. If Buhari want to diversify the economy why is he still looking for oil in the North. Shame on APC and their scam evil change that have ruin our once buoyant economy. Infact, this wicked APC shameless lot should STFU until they revive our economy because people are suffering and frustrated

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Disclaimer: Opinions expressed in comments are those of the comment writers alone and does not reflect or represent the views of Linda Ikeji.

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