The National Bureau of Statistics (NBS) some days ago released its Second Quarter Report on the state of the nation’s economy and painted a virtually grim picture of it all; a development we believe compelled the Minister of Finance, Mrs. Kemi Adeosun, to declare that “it is the worst time possible for us”. But aside the slight change in figures suggesting the nation’s further slide into economic recession, we see nothing spectacular about the public outcry on the NBS latest report when compared with similar reports from the agency of late, particularly on Consumer Price Index (CPI).
The NBS Second Quarter Report indicated that the economy regressed by 2.06 percent, the lowest in about three decades. It earlier dipped by 0.36 percent in the first quarter of this year, the poorest in 25 years. Unemployment grew from 12.1 percent in the first quarter to 13.3 percent in the second quarter. The CPI was no less worrisome; having risen to 17.1 percent in July from the 16.5 percent mark we had in June, among other indices.
Two months ago, the NBS declared that inflation in the country soared to 15.6 percent in May, 2016 from the 13. 7 percent recorded the previous month (April, 2016). The increase recurring for four consecutive months was a reflection of the high cost of living in the land, with interest rates on savings accounts getting lower than the rate of inflation, for those that could still afford to save.
The NBS had stated in the report: “The increase in rates in May relative to April reflects an overall increase in general price level across the economy as all divisions which contribute to the Headline Index increased at a faster pace in May. Year-onyear, electricity rates as well as other energy prices continue to manifest as key drivers of the core component of the CPI. The core sub-index increased to 15.1 percent in May, up by 1.7 percent points from rates recorded in the previous month. During the month, the highest increases were seen in the passenger transport by road, liquid fuel (kerosene), fuels and lubricants for personal transport equipment (Premium Motor Spirit) and vehicle spare part groups”. The report said, in addition, that imported foods and a drawdown of inventories across the country continued to push food prices higher.
Prior to the release of the NBS report, however, experts predicted the increase in inflationary rate, just like many did before the release of the Second Quarter Report. From the economic plight of Nigerians presently – whether measured in terms of infrastructure deficit, withering manufacturing sector, diminishing job opportunities and widespread poverty occasioned by non-payment of salaries to workers, very harsh living condition and scary micro and macroeconomic indices, et cetera – it seems obvious to everyone that the country is suffused in an economic mess.
But we take special exception to the predicament being trivialised by political tantrums, either by the marooned opposition Peoples Democratic Party (PDP) or the ruling All Progressives Congress (APC). The PDP, for example, told President Muhammadu Buhari lately to resign in view of the worsening economic indices, suggesting that Buhari government’s poor grounding in economic management plunged the nation into the current recession. The APC, in response, said the PDP lacked the moral basis and credibility to comment or condemn the Buhari government on the mess it left behind.
Our thinking, however, is that this is not the right time to dwell on recriminations. Had the economy been well-run in the past, it certainly would not have collapsed just two years into a new administration because of the crash in oil prices and the additional sabotage of pipeline vandals, though the PDP would want to impress the contrary on Nigerians and the rest of the world. For its part, however, the APC must not tarry in crying over spilled milk while Nigerians keep roasting in their millions. It is thus high time President Buhari and his team devoted less time to addressing political distractions and weigh in on all the suggestions by experts and its wellwishers on how best to revive the economy.
Experts say, for example, that injecting sufficient funds into infrastructure and social safety nets, looking inwards through the stimulation of local industries and making do with locallymade products, diversifying the economy via agriculture, solid minerals and so forth, being less dependent on imports to drive down the high demand for foreign exchange, among others, are the ways to go. These, not political outbursts are what we think should occupy the time of the Buhari government for now.
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