National Wire About Nigerians, Nigerian Business and Other Stories
Former deputy governor of the Central Bank (CBN), in charge of Finance System Stability, Professor Kingsley Moghalu, has said contrary to claims by the Federal Government, Nigeria is not out of recession yet.
Instead, Moghalu said the country’s economy is going through “economic contraction” which, according to him, will take Nigeria more years to overcome.
After Nigeria slid into recession in 2016, in September 2017, the federal government formally announced that the country had exited recession, following a growth of 0.55 percent in the Gross Domestic Product (GDP).
In an exclusive interview with Daily Sun, the ex-CBN deputy governor said: “I think that the recession we have just come out from was the worst in nearly 30 years. It was, in reality, much more than a recession. I think it was a very momentous economic contraction that will take us many years to get out of.
“The ultimate test of an economy, in my view, not just as an economist, but, as a citizen, is not infinitesimal movements in GDP figures but in the state of welfare of the common man and woman. I think if we take that test, it is very clear that Nigeria is in a very unfortunate situation.”
Asked what Nigeria needs to do to get out of recession, Professor Moghalu replied: “There are two important problems we have in Nigeria right now. One is, of course, the question of jobs. We should do everything possible to improve the growth in jobs because that is what gives people spending power to resuscitate an economy. Number two is the power situation. I believe in power for all and power for all, of course, is a statement of many dimensions. It is a statement of the right that Nigerians have to have electric power as a very basic infrastructure in their homes. We just saw the collapse of the National Grid and all that and, I think these things are indication that there is deep systemic decay in Nigerian governance.
