Nigeria’s economy is still vulnerable with fragile growth driven by increased oil production and rising crude oil Price.
Chief Executive Officer, RTC Advisory Services Limited, Mr. Opeyemi Agbaje made this observation at a media parley in Abuja.
He noted that, while there was miraculous reversal in oil price and production out put, other sectors such as manufacturing, services sector, telecommunications are yet to come out of the recession.
According to him, “Nigeria’s economy witnessed miraculous reversal in terms of oil price and production. The country came out of recession because of oil growth. The economy of shell oil, NNPC and other oil firms may have come out of recession but other sectors are still grappling with recession.”
He pained an optimistic picture by assuring that a sustained “diffusion of rising crude oil Price, other sectors currently in recession could experience positive growth.”
Asked why Nigeria’s budget has not made any meaningful impact on the citizens, Agbaje said the “Nigeria’s budget as currently structured may not affect the citizens quickly as expected unless its focus is changed from heavy recurrent expenditure to capital.”
According to him, “unless we reverse our budget culture, poverty will continue to grow. When you spend 80% of revenue on limited number of people you will get the sort of outcome we are currently grappling with. Unless you reverse the trend of your priority by spending 80% on capital projects and spend less on recurrent items, there would be massive poverty” he said.
SOURCE: THE NATION