Buhari calls emergency economic summit in response to Nigeria sliding into recession

PRESIDENT Muhammadu Buhari has convened an emergency extra-ordinary retreat in Abuja in response to the growing economic crisis that has seen Nigeria slide into recession with no sign of relief on the horizon.

 

Since Nigeria returned to democratic rule in 1999, she enjoyed an average economic growth rate of about 7% a year due to a combination of high crude oil prices and growing diversification. Over the last year, however, oil prices have collapsed and there has been an unprecedented slowdown in economic growth.

 

This has led to an acute scarcity of foreign exchange, which has made doing business with the outside world very difficult. During the first two quarters of the year, Nigeria witnessed negative economic growth, technically throwing the country into a recession, which has created further panic among investors.

 

In response to the crisis, President Buhari has called a summit in Abuja which he will chair, during which experts will brainstorm in a way to find solutions. Those expected at the one-day retreat include vice president Yemi Osinbajo, members of the Federal Executive Council and heads of relevant ministries, departments and agencies.

 

Also expected are private sector facilitators and some economic experts, who have been invited to offer perspectives during the technical sessions. According to budget and national planning minister Udoma Udo Udoma, the meeting would also provide the forum for the federal government to present and discuss priority areas of next year’s budget and realign its priority areas with national growth and development objectives.

 

Mr Udoma said: “The key objective of the retreat is to discuss the 2017 budget as well as steps being taken to get the economy out of recession. The meeting is part of a scheduled arrangement to fine-tune and set the right parameters for the 2017 budget.

 

"The meeting will provide an opportunity to discuss the framework of the 2017 budget, the key priorities and the deliverables. This retreat is expected to deliver improved understanding of the measures being taken to get the country out of recession, improve synergy among the various ministries for enhanced implementation of planning and budget and enhance knowledge of how to develop the 2017 budget, which is effectively linked with the medium term plan."

 

He added that he meeting will also review prioritised projects and programmes of ministries to fit into the 2017-2019 and 2017-2020 medium term plans. In addition to discussing the 2017 budget, the summit will also debate improved understanding on ceilings for ministries, departments and agencies.