Buhari says his government has spent $2.4bn trying to get economy out of recession

PRESIDENT Muhammadu Buhari's government has spent a massive N720.5bn ($2.4bn) on capital expenditure this year as part of a desperate measure to kick-start the economy lift the country out of recession.

 

Since Nigeria returned to democratic rule in 1999, she has enjoyed an annual average economic growth of about 7% until this year. During the first two quarters of 2016, Nigeria posted negative economic growth, technically pushing her into a recession, leaving the government scratching around for solutions.

 

Giving his annual 56th independence day anniversary address, President Buhari said that the government is doing all it can to lift the country out of recession. He also reiterated that government wanted to repair the country’s four refineries to end costly refined fuel imports.

 

According to President Buhari, oil production had temporarily dropped to less than 1m barrels per day (bpd), down from 2.2m bpd, due to militant attacks. He, however, assured that the naira exchange rate to the dollar would stabilise, after dropping to record lows due to a critical shortage of hard currency amid low oil prices.

 

President Buhari said: “I believe that this recession will not last. Several hundreds of thousands of unemployed workers will be re-engaged in the next few months as our public works program gains momentum."

 

Nigeria’s 2016 budget was the largest in the nation’s history but an oil price drop and militant attacks on oil pipelines in the Niger Delta have left the government scrambling for funds. Limited oil receipts have had a multiplier effect on the rest of the economy, affecting production in numerous other sectors.