Kemi Busari
Governor Ayodele Fayose of Ekiti State on Thursday 29th of October made strong statements about the state of the country’s economy saying it is on a solo ride to collapse in the next 3 months if drastic measures were not taken by the All Progressives Congress (APC)-led government.
He accused the Buhari government of employing propaganda rather than tackling the issue at hand.
‘I foresee serious trouble ahead because in the next 3 months,the economy may collapse. Oil now sells in the region of forty Dollars per barrel. Things have never been bad like this. When I returned from the Holy land Yesterday (28th, October 2015), I was told that Ekiti got N1.4bn whereas my wage is 2.6bn.’
On the ordinary, many will discard this as the usual statement of an opposition but some salient issues that were raised by the governor cannot be overlooked. The mainstay of the economy which is oil and the issue of wage bill which has recently constituted itself as parasitc thorn in the progress of many states.
In times past, the best jobs are that offered by the civil or public service. It is best in the sense of job security, prompt and timely payment of salary and flexibility. However, the reality on ground today has refuted the applicability of these advantages. Many states of the federation now owe their workers salaries for months accumulatively.
According to a recent report by the Nigeria Labour Congress (NLC) Task Force, 23 out of the 36 states still owe their workers. While some of the states have paid salaries of workers up to date, some still owe arrears and pensions running into months. How are civil servants expected to survive in this situation?
If this is the reality, then Governor Fayose’s statement cannot be easily overlooked. If Ekiti State is currently owing three months workers salary, then the governor’s statement is far beyond a political foul cry.
A critical look and analysis of these issues will ultimately reveal the diagnosis of the economic ailment. Nigeria is in reality ill economically. What is the way forward from this mess? What pragmatic steps can be taken as amendments?
Our first suggestion is for Mr. president is the diversification of the economy on a national scale.
A mighty tree cannot flourish on only a branch; likewise the economy can’t survive only on petroleum. The government should annex the potentials in other sectors of the economy.
The country has a large comparative cost advantage in such areas as agriculture, forestry, artistry, and many other areas. It is high time the we invested in these sectors and break the over dependence on oil.
Moreover, the country should also engage its abundance working population. Production should be labour-intensive rather than machinery. Nigeria being the most populated country in Africa with an estimated population of about 180,000,000 living in its rural and urban areas has a surplus to demand in terms of labour force. Therefore the use of machinery will further compound the problems.
Recently, a dry cleaning firm purchased two washing machines and by implication led to the retrenchment of about 10 washers in the firm. It is a known fact that technology enhances an economy however, the demographic and geographical constitution of a society should be considered in planning its economy. India and China are good models in this regard.
The country should also stiffen its rule of taxation, corruption and foreign investment. Tax evasion should be reduced or eradicated totally especially by foreign investors.
On the part of the state governments, clear-cut economic policies should be formulated in line with their peculiarities. State should implement policies which will guarantee at least 50 percent of their sustainability.
If Nigeria’s economy is really going to collapse as predicted by Governor Fayose, the responsibility of savouring the situation rests on those at the helms of affairs. How well they are able to respond to this will go a long way in determining if the country is really sick or not.
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