Monday, 25 January 2016

State Of Nigeria’s Economy Is Out Of President Buhari Control – Okupe

Okupe Urges FG To Readjust The Budget Immediately
Doyin Okupe, a former senior special assistant on public affairs to ex-president Goodluck Jonathan, has raised alarm over the precarious state of Nigeria’s economy.

According to Doyin Okupe, the economic situation is totally out of the control of the administration of President Muhammadu Buhari.

In a post on his official Facebook page on Monday, January 25, Okupe noted that volatility of oil prices have threatened the stability of the economy, adding that this ominous situation is totally out of the control of the administration of President Muhammadu Buhari.

“These are very critical periods for world economy as it relates to Crude Oil production and sales. For a country like Nigeria it becomes more crucial in view of the fact that close to 70% of government revenue comes from sale of crude oil.

“In recent times however, the volatility of the oil prices have threatened the stability of the Nigerian economy.

“Specifically the present price of crude oil hovering between $26 & $28 US dollar directly undermines the profitability of the crude oil enterprise, as the cost of production of crude in Nigeria is about $30 USD. This high cost of production is second only to Russia. Saudi, Iran,Iraq all produce at a cost between $12 &$15 USD.

“The danger signal here is clear and profound. The implication of this price regime is that we begin to lose $4-$2 USD for every barrel of crude oil we produce.

“It is pertinent to state clearly here that this ominous situation is totally out of the control of the present administration,” he stated.

Stressing that all citizens are stakeholders in the Nigerian project, Okupe called on them to put all heads together to find a solution.

According to him, the federal government must readjust the budget immediately.

“Recurrent expenditure must be reduced by 50% minimum, while the capital is reviewed to focus mainly on projects that will directly impact on production and export driven initiatives.

“The deficit in the budget must be reduced substantially while the bench mark is brought lower to between $17 & $20 USD,” he stated.

Okupe further noted that Nigerians and foreigners must be encouraged to bring in their foreign currencies with absolute necessary guarantees.

“Lastly while the current anti corruption war must continue unabated emphasis must now be placed on recoverable to boost our foreign cash inflow. The need for the government to declare a national emergency and nationwide austerity measure regime cannot be over emphasized,” he noted.

Following the arrest of Peoples Democratic Party’s spokesman, Olisa Metuh, Okupe accused Buhari of being selective in his anti-corruption war. He also advised the president to emulate Jonathan who he said was insulted by many leaders of the opposition but never retaliated.