The Central Bank of Nigeria CBN, has said that the end of the economic recession is not in near sight as it is not an ‘100-meter race’ so Nigerians should be ready for a long haul.
This was disclosed by the acting Director of Corporate Communications of the apex bank, Mr. Isaac Okorafor, while speaking at the ongoing CBN Fair in Enugu. This is in contrast to the assertions made by the government and the ruling party that the economic recession will end sooner than expected.
Okarafor said that the only way out of the recession was for Nigerians to patronize made in Nigeria goods instead of spending foreign currencies. “The most hit now are people who have refused to realize that we ought to eat what we produce, like the elite. Farmers eat what they produce.” Daily Post quotes Okarafor as saying.
Nigeria officially entered a recession after the National Bureau of Statistics confirmed that second quarter GDP contracted by -2% following the -0.3% recorded in the first quarter of 2016.
The recession is often seen as being triggered by the over 100% crash of the Naira at the parallel market in the last one year, increasing the prices of goods and services across the country.
The Nigerian Economy has been hit severely by a drop in oil prices which began in June 2014. Oil being Nigeria’s major export earner, took a major nosedive reducing the amount of dollars available for the country to meet its import needs.
As Nigerians grappled with dwindling export proceeds, the CBN issued a rash of polices that have mostly backfired and contributed significantly to the crash of the Nigeria. CBN’s policies are thought to have exacerbated the current economic situation in the country, alienating foreign investors and worsening a currency crisis that has made the Naira nearly worthless.
The latest comment by Mr Okorafor joins a litany of economic gaffes that the CBN has often been criticized for.
