2020: Pat Utomi Makes Shocking Revelation About Buhari Govt
1 year ago festus dada 0
Prof. Pat Utomi, professor of political economy and management has bore his mind about Nigeria in year 2020. He spoke extensively about the budget recently approved by Lawan-led red chamber.
I will tell emphatically that 2020 would be a very challenging year for Nigeria when you look at the terrible economic performance of the country in the recent years. Unfortunately, most of them are self-inflicted. We keep focusing on such basic macro issues whereas the real problem with the Nigerian economy is fundamental, structural, basic institutional and cultural base. I keep reminding people that the problem of the Nigerian economy was government induced. So, regulation is creating some certain risks and makes Nigeria scary in terms of investment. When you look, you will see that most private business people around the world have it very difficult establishing business in Nigeria because of the fear of governors that comes and revoke the approval for their businesses. State governors are particularly notorious of revoking Certificate of Occupancies and commitments made by their predecessors. So, in all of these, it is good to know that investors are very pre-cautious. The only thing that can save Nigeria is becoming a productive economy driven by investment. How do you expect people to invest when they are scared that their investments will only take a change of government to be jeopardized?
In terms of inflation rates, we have an awkward situation where the country’s economy is not growing, yet inflation is growing. Inflation is a function of how we spend money and this is because the supply side of essential needs of the people that determine headline inflation is weak. So in spite of people not having enough money, there is too much money chasing available few goods in the economy. So, how do we deal with the supply side? The truth is that there is a little bit of confusion around this border closure business and how it has affected production, but it will also lead to higher prices of goods and services. We need to manage that whole process differently to ensure that the supply side is boosted without necessarily creating disruptions that drive up prices.
Conclusively, 2020 is bleak considering the budget. If you look at the needs of Nigerians, the budget constitute a micro percentage of the country’s need. It does not have what it requires for development. The bulk of what will spur development will come from the private sector. We must stop thinking in terms of budget and development, the more that we make the private sector growth ready, development ready, and investment ready, the better we can predict. The budgetary index put together does not go anywhere, given the gaps of what it requires to get the economy running.