{"id":76982,"date":"2020-11-22T16:46:32","date_gmt":"2020-11-22T15:46:32","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=76982"},"modified":"2020-11-22T16:46:32","modified_gmt":"2020-11-22T15:46:32","slug":"recession-swallow-your-pride-seek-help-stop-borrowing-atiku-counsels-buhari","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/exclusive\/recession-swallow-your-pride-seek-help-stop-borrowing-atiku-counsels-buhari\/","title":{"rendered":"RECESSION: Swallow Your Pride, Seek Help, Stop Borrowing, Atiku Counsels Buhari"},"content":{"rendered":"
\n
Former Vice President Atiku Abubakar has asked President Mohammadu<\/div>\n
\n
Buhari to swallow his pride and seek help to pull Nigeria out of the
\nthird recession under his watch as President.<\/p>\n

Nigeria slipped into a recession after its gross domestic product
\ncontracted for the second consecutive quarter, according to data
\nreleased on Saturday which showed the impact of the COVID-19 pandemic
\nand low oil prices.<\/p>\n

Atiku in a statement said the country could have been saved from
\nmultiple recession had President Buhari listened to wise counsels from
\nhim and other Nigerians.<\/p>\n

The former Vice president suggested that every non-essential line item
\nin the 2021 Budget should be expunged, investments made in human
\ndevelopment, and the purchasing power of the poor and most vulnerable in
\nthe society increased.<\/p>\n

Atiku\u2019s statement reads:<\/p>\n

\u201cIt is with a very heavy heart that I received the confirmation that for
\nthe second time in five years, Nigeria has entered into another
\nrecession. Heaviness of heart, because this could have been avoided had
\nthis administration taken heed to patriotic counsel given by myself and
\nother well-meaning Nigerians on cutting the cost of governance, saving
\nfor a rainy day, and avoiding profligate borrowing.<\/p>\n

\u201cYes, the COVID19 pandemic has exacerbated an already bad situation,
\nhowever, we could have avoided this fate by disciplined and prudent
\nmanagement of our economy.<\/p>\n

\u201cBe that as it may, it serves no one\u2019s purposes to quarrel after the
\nfact. We must focus on solutions. Nigeria needs critical leadership to
\nguide her back to the path of economic sustainability.<\/p>\n

\u201cWe cannot afford hand wringing and navel-gazing. We must act now, by
\ntaking necessary, and perhaps painful actions.<\/p>\n

\u201cFor a start, the proposed 2021 budget presented to the National
\nAssembly on Tuesday, October 8, 2020, is no longer tenable. Nigeria
\nneither has the resources, nor the need to implement such a luxury heavy
\nbudget. The nation is broke, but not broken. However, if we continue to
\nspend lavishly, even when we do not earn commensurately, we would go
\nfrom being a broke nation to being a broken nation.<\/p>\n

\u201cAs a matter of importance and urgency, every non-essential line item in
\nthe proposed 2021 budget must be expunged. For the avoidance of doubt,
\nthis ought to include estacodes, non-emergency travel, feeding, welfare
\npackages, overseas training, new vehicle purchases, office upgrades,
\nnon-salary allowances, etc.<\/p>\n

\u201cUntil our economic prospects improve, Nigeria ought to exclusively
\nfocus on making budgetary proposals for essential items, which include
\nreasonable wages and salaries, infrastructural projects, and social
\nservices (citizenry\u2019s health, and other human development investments).<\/p>\n

\u201cAdditionally, we have to stimulate the economy, by investing in human
\ndevelopment and increasing the purchasing power of the most vulnerable
\nof our population. Only a well-developed populace can generate enough
\neconomic activity for the nation to exit this recession.<\/p>\n

\u201cWe must invest in those most likely to be impacted by the effects of
\nthe recession, the poorest of the poor. As well as stimulating the
\neconomy, this also ensures that they do not slip further into extreme
\npoverty.<\/p>\n

\u201cFor example, a stimulus package, in the form of monthly cash transfers
\nof \u20a65000 to be made to every bank account holder, verified by a Bank
\nVerification Number, whose combined total deposit in the year 2019 was
\nlower than the annual minimum wage.<\/p>\n

\u201cNow, how will this be funded? By more profligate borrowing? No. I
\npropose a luxury tax on goods and services that are exclusively
\naccessible only to the super-wealthy. A tax on the ultra-wealthy to
\nprotect the extremely poor.<\/p>\n

\u201cA practical approach to this is to place a 15% tax on all Business and
\nFirst Class tickets sold to and from Nigeria, on all luxury car imports
\nand sales, on all private jets imports and service charges, on all
\njewellery imports and sales, on all designer products imported, produced
\nor sold in Nigeria, and on all other luxury goods either manufactured or
\nimported into Nigeria, with the exception of goods made for export. The
\nproceeds of this tax should be exclusively dedicated to a Poverty
\nEradication Fund, which must be managed in the same manner as the
\nTertiary Education Trust Fund, or the Ecological Fund.<\/p>\n

\u201cI further propose that a 1% poverty alleviation tax should be
\nlegislated by the National Assembly on the profits of every
\nInternational Oil Company operating in Nigeria, and international
\nairlines doing business in Nigeria, which should also go towards the
\nproposed Poverty Eradication Fund.<\/p>\n

\u201cIt is inhumane for us as a nation to increase the cost of goods and
\nservices that affect the poor, while keeping the cost of luxuries fairly
\nstable. We must flip this, and flip it immediately.<\/p>\n

\u201cAnd above all, Nigeria must stop borrowing for anything other than
\nessential needs. Again, for the avoidance of doubt, borrowing to pay
\nsalaries, or to engage in White Elephant projects, is not an essential
\nneed. This is particularly important as we need cash at hand, because
\nthe world and our economic and development partners are also focused on
\nhelping their home economies overcome the effects of COVID19. We must be
\nour own saviours.<\/p>\n

\u201cThe more we borrow, the more we will need cash to make interest and
\nprincipal payments, and the less cash we will have to make necessary
\ninvestments in our economy and our people. If we keep borrowing, we
\nstand the risk of defaulting, and that will make recession a child\u2019s
\nplay, because we will lose some of our sovereignty.<\/p>\n

\u201cI urge the administration of President Muhammadu Buhari to swallow its
\npride, and accept its limitations, so that they can open their minds to
\nideas, without caring who the messenger is. For as Deng Xiaoping said
\n\u201cIt doesn’t matter whether the cat is black or white, so long as it
\ncatches mice.\u201d<\/p><\/div>\n<\/div>\n

<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Former Vice President Atiku Abubakar has asked President Mohammadu Buhari to swallow his pride and seek help to pull Nigeria out of the third recession under his watch as President.…<\/p>\n","protected":false},"author":1,"featured_media":64687,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-76982","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-exclusive"],"yoast_head":"\nRECESSION: Swallow Your Pride, Seek Help, Stop Borrowing, Atiku Counsels Buhari - Pointblank News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pointblanknews.com\/pbn\/exclusive\/recession-swallow-your-pride-seek-help-stop-borrowing-atiku-counsels-buhari\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RECESSION: Swallow Your Pride, Seek Help, Stop Borrowing, Atiku Counsels Buhari - 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