Dark clouds over the economy, By Dakuku Peterside

Rome is burning, and Emperor Nero and Roman elites are busy revelling in gladiator rendezvous and despicable hocus-pocus with the empire’s future. The leadership in Nigeria is playing Nero, and the Nigerian elites are side-tracked by the macabre dance of preparing for the next elections.

Economists amongst us try to explain the situation using critical economic data, mainly from the National Bureau of Statistics . Recent statistics will make any Nigerian have a sober reflection on the fate of this country , though the full effect of this is yet to play out. Spiralling inflation stands at 18.6% in June 2022 on a year-on-year basis, and on a month-on-month basis, the inflation rate increased by 1.82% in June 2022, higher than the rate recorded in May 2022.

This situation is not helped by dwindling government revenue because of insecurity and Nigeria’s inability to maximise the production and sale of crude oil during this high price regime in the international market. Our low productivity meant that government did not get much revenue from taxes, duties, and levies from economic activities. Our revenue to debt service ratio is about 120%, and Nigeria owes over $100 billion, almost a quarter of our Gross Domestic Product.

Therefore, I recommend that the government put out remedial policies and actions to mitigate the painful consequences of the economic hardship on many Nigerians. Over one hundred million Nigerians are living below the poverty line. Imagine how they are coping with this harsh inflationary economic trend.

The depreciation of the Naira has continued to directly or indirectly affect most families in Nigeria owing to the import dependent nature of the economy.

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