Emefiele: We need an emergency bill to spend our way out of recession

Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), says Nigeria has seen the worst of economic times and will be out of recession by the end of 2016.

Speaking to media leaders in Lagos over the weekend, Emefiele said that Nigeria is on its path to recovery.  He also voted his support for President Muhammadu Buhari’s emergency economic bill.

“We are already in the valley; the only direction is go up to the hill and government is doing everything possible to move up the hill as quickly as possible,” Emefiele said.

“I’m optimistic that with the action taken by the government, the monetary and fiscal authorities, by the fourth quarter, you will see the evidence that we have started to move up north, in the direction of the hill and out of the recession.

“I repeat, the worst is over. Nigeria’s economy is on the path of recovery and growth. If you are a bystander, you are losing by being a bystander; join the train now before it leaves you.”

WE NEED EMERGENCY SPENDING BILL

Emefiele said Nigeria has to spend its way out of recession. He called on the national assembly to pass the emergency bill put together by the president’s team.

“Basically, what you would do is to spend your way out of the recession and we have not stopped talking about the fact that we need to spend our way out of the recession.

“Unfortunately, the procurement process is such a long one in the public service, and you dare not breach the rules on the procurement process.

“Imagine starting a procurement process in say May or June, you will agree with me that by now, you will be opening the bids, now when you open the bids and see the numbers, you begin to negotiate prices, after that you go to the Bureau for Public Procurement (BPP), maybe after that you go to Federal Executive Council (FEC) to get approval and that takes another six months.

“What all this means is that we must shorten this process; but shortening this process means that we need to have an emergency spending bill, which I am aware is ready before the National Assembly for approval.

“What that does is to remove all the bottlenecks that are involved in the process of procurement so that government will spend the money to stimulate the economy.”

WE WASTED $66 BILLION ON BDCs

Emefiele said Nigeria wasted its reserves in the past on reimbursing bureau de change (BDC) operators, rather than building infrastructure.

“What that meant was that in 11 years, we spent $66 billion funding the operations of BDCs, which came to an average of $6 billion a year,” he said.

“If we had thought of other ways to utilise our reserve, especially in 2008 when our reserves were as high as $62 billion, certainly we will not be where we are today.”