The economic recession in Nigeria will continue dwelling, bar for a change in spending methods of Nigerians, the Federal Government said on Sunday.
Speaking at a media event organized by Nigerian Economic Summit Group (NESG) in Lagos, minister of Budget and National Planning, Senator Udoma Udo Udoma said:
“The way to go out of recession is to inject more money into circulation and this could be achieved through active participation of the private sector and by encouraging the manufacture of ‘Made in Nigeria’ products, which the 22nd Nigerian Economic Summit, is championing and it is billed to hold from October 10-12, 2016, at the Transcorp Hilton, Abuja.
“Our current economic challenges are rooted in our reliance on a single commodity, which is crude oil, whose price has fallen, leading to a drastic fall in our revenues. The Nigerian economy is currently in recession and faced with contracting GDP growth, rising inflation and unemployment rates, as well as declining level of external reserves.
“We are deliberately working towards diversifying the Nigerian economy by ensuring that non- oil sector drives the economy because this is the sector that contributes the most to GDP, and has more capacity to employ.
“The basic strategy is to reflate the economy through fiscal stimu- lus and strategic implementation of annual budgets. What this means is that we are geared to strategically spend our way out of recession. Unfortunately, we have not met all our planned expenditures for 2016 due to low revenue out-turns. However, we have ensured that the resources that we release are targeted at priorities that will stimulate activities in the economy.”