Vice President Yemi Osinbajo has put the blame for the economic recession on the bombings of oil installations in the Niger Delta. The Niger Delta Avengers and other militant groups have been bombing oil and power installations. Speaking at the Presidential Quarterly Business Forum at the State House in Abuja yesterday, Prof. Osinbajo said the
bombings had more adverse impact on the 2016 budget and the economy than the low prices of oil in the international market. According to him, the 2016 budget properly anticipated the low oil price, but did not expect the drop in oil production caused by the bombings.
bombings had more adverse impact on the 2016 budget and the economy than the low prices of oil in the international market. According to him, the 2016 budget properly anticipated the low oil price, but did not expect the drop in oil production caused by the bombings.
He said the budgetary expenditure predicated on a daily crude oil production of 2.2 million barrels witnessed a drastic drop to less than 1.1 million barrels per day due to the bombings.
His words: “Perhaps it is important for us to understand the nature of this recession in which we have found ourselves. In discussing this issue of recession, there is the tendency for people to generalise; a lot depends on what sort of recession and how we got here.
“If we did not have vandalisation in the Niger Delta as we are currently suffering, we will not have this recession today. Moreover, in looking at the solutions, we should try to focus on the type of problem we have and what instigated it, then we can begin to come up with better solutions.”
But rather than analyzing how Nigeria came about the problems, Osinbajo noted that some were criticising the Federal Government.
Reiterating the government’s readiness to address power sector challenges, the Vice President said it would require a ‘revolution’ to shore up power to adequate level nationwide.
He said the government would do everything possible to attain the February 2016 power generation level prior to the pipeline bombings.
“We are doing a whole lot by interfacing with the private sector because we realise their role in the economy. If the Dangote refinery comes on stream, it will help us overcome some of those challenges, like the sub-sea gas pipelines; it will take care of vandalisation.
“Let me point out that there is no question at all that the private sector is crucial.’’
“The up-coming Dangote Refinery has 650,000 barrels per day capacity.
Source: The Nation
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