Be prepared for another economic recession in 2020, Gov. Yari warns

The Chairman of the Nigeria Governors’ Forum (NGF), Alhaji Abdulaziz
Yari, stargazing, advised newly-elected and returning governors to gear
up for possible economic recession in Nigeria in mid-2020.

Alhaji Abdulaziz Yari

Yari, who is also the Governor of Zamfara State, gave the advice at
the opening ceremony of an induction of new and returning governors,
organised by the NGF Secretariat on Monday in Abuja.

He said that due to the drop in the price of crude oil from 114 to 75
dollar per barrel in the middle of 2014, it became very difficult for many
states to even pay salaries.

“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 the mid-2020.

“This may last up to the 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,’’ the governor said.

He commended President Muhammadu Buhari for his numerous
interventions that saved the states from debilitating economic
challenges, as well as exit of Nigeria’s economy from recession.

He said that at a point, 27 states were experiencing difficulty in
settling their workers’ monthly salaries, development of infrastructure
and effective service delivery.

“Mr President’s intervention through bailouts from the capital market
through the Central Bank of Nigeria, infrastructure development funds,
Anchor Borrowers’ Programme, budget support, London and Paris Clubs
refunds have significantly saved the situation,’’ he said.

Yari, however, stressed the need for states to work harder to boost
their Internally Generated Revenue (IGR) to enable them to execute more
projects and reduce over-dependence on the federation account.

He also advised governors to look inward by boosting their revenue
generation and also utilise the accruing revenue to execute projects
that would touch the lives of the ordinary 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.’’

The NGF chairman lauded the current administration’s focus on
agriculture, including Anchor Borrowers’ Programme through which about
N200 billion had been expended.

He, however, added that the amount was inadequate if Nigeria must satisfactorily tackle the issue of insecurity in the country.

He said that Nigeria needed to go to the next level by slamming high
import tariff on other agricultural products, maize and wheat in order to
boost their production and provide raw materials for local industries.

“From records, government spends about N2 billion on oil development
yearly. I believe if one third of the amount was dedicated to
agriculture and mining, the state of the economy would have been
different by now,’’the governor said.

He also said that revenue agencies must be made to work more
effectively especially now that President Buhari had assented to the
National Minimum Wage bill of N30, 000 per month.

Yari, who decried Nigerians’ negative attitude to payment of taxes in
full, said that individual and collective contributions in ensuring
prompt payment of taxes could help the government to achieve all its
objectives.

He said that the forum organised the induction programme to support
the new governors in developing the essential skills for modern day
governance that would re-position them for their post campaign
responsibilities.