The Minister of Finance, Mrs. Kemi Adeosun and her Budget and National Planning counterpart at separate forums Thursday doused fears over the gloomy economic outlook. In the midst of what many see as a recession, they forecast a rebound of the economy in 2017.
While briefing the Senate the minister of finance said President Muhammadu Buhari’s government inherited salaries and wages of N169 billion which it has reduced to N159 billion. She stressed the obvious: the need for Nigeria to diversify her economy and seek alternative sources of revenue.
She disclosed that a total of N247.7 billion has so far been released as capital expenditure and that another N70 billion would be released very soon, adding that all the releases are cash-backed as a priority of government.
Also speaking Thursday, the Minister of Budget and National Planning, Senator Udo Udoma, raised a banner of hope when he assured that the government sees a rebound of the economy in 2017 after the lull of 2016. He disclosed these while answering questions from State House correspondents at the end of a meeting of the National Economic Council meeting presided over by Vice-President Yemi Osinbajo.
The minister hinted of a possible status of an economy in recession for Nigeria if the negative growth index continues in the second quarter review.
“Recession is basically when you have two quarters of negative growth. We had a first quarter of negative growth and we are still waiting to get all the figures for the second quarter which has just ended in June.
“The National Bureau of Statistics will be giving us all the figures but if as we suspect, the second quarter is also negative, then of course technically you could say that we are in recession if those figures turned out to be so.
“But even if we are not, the situation in the economy right now is one that of course we are addressing.”
The NEC meeting also reviewed the indebtedness of some states and their inability to pay wages of workers despite recent bailout gestures from the federal government.
