Nigeria’s Minister of Power, Works and Housing, Babatunde Fashola, on Friday gave insight into how Nigeria slipped into recession.
Mr. Fashola, who spoke at the Lafarge Road Construction Summit in Lagos, said recession didn’t happen overnight and attributed the development to poor budgetary funding by the administration of former president, Goodluck Jonathan.
“There have been various comments about who and what caused the recession, I think that Nigerians know the answer to that, no matter how vehemently that debate goes on,” Mr. Fashola said.
“All I need to say at this time is that if the previous managers of the economy were doing well, the Nigerian electorate would not have relieved them of their jobs in the last general election because a recession does not happen overnight.
“There have also been questions about what the exit of the recession means to the ordinary Nigerian and this for me is the important question; because, even when the economy was growing at 5%-7%, the complaint was that it was a non-inclusive growth.
“Growth was largely oil driven, and sectors like industries, mining and construction had been in the negative since 2014.”
Mr. Fashola said many reasons had been given for the negative trend in the mining and construction sectors, adding that a core reason was the fact that public spending up to 2015 was largely recurrent and minimally capital.
“Government was budgeting about 15% of an annual budget of N4 Trillion for capital, which is only about N600 billion, and was funding barely half of that,” he said.
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