Olawepo-Hashim: Nigeria’s Financial system Has Collapsed Underneath APC, GDP Shrunk By Over 50%
Former presidential contender and former governorship candidate in Kwara State, Gbenga Olawepo-Hashim, has declared that Nigeria’s economic system has collapsed underneath the All Progressives Congress (APC), shrinking from about $574 billion in 2015 to roughly $230 billion as we speak, describing the scenario as proof of deep coverage failure quite than momentary reform ache.
Talking in an interview with ARISE NEWS on Monday, Olawepo-Hashim stated the dramatic fall in Nigeria’s Gross Home Product displays a collapse throughout key productive sectors, insisting that official narratives of restoration don’t align with {economic} realities skilled by Nigerians.
“In fact it displays an actual collapse in productive capability. We’ve seen collapse within the agricultural sector, we’ve seen collapse in manufacturing. Almost each sector of the economic system has collapsed,” he stated.
He argued that agriculture, as soon as a stabilising drive, has been severely undermined by insecurity and coverage missteps, noting that Nigeria misplaced about $5 billion within the sector over the previous two years resulting from makes an attempt to artificially suppress meals costs.
“When the Naira was over-devalued, the price of imported inputs like herbicides went up over 100 per cent. Then, as a substitute of supporting farmers, the federal government allowed huge meals importation from international locations the place agriculture is closely subsidised,” Olawepo-Hashim stated. “What we ended up with was a close to collapse of Nigeria’s agricultural sector.”
He added that forex devaluation has additional depressed GDP figures when measured in greenback phrases, stressing that Nigeria’s present GDP of about $230 billion is decrease than what it recorded underneath former President Olusegun Obasanjo practically twenty years in the past, regardless of a a lot bigger inhabitants.
“Underneath Obasanjo in 2007, Nigeria’s GDP was about $278 billion when our inhabitants was round 120 million. At this time, with over 230 million folks, we’re at $230 billion,” he stated.
Rejecting claims that latest {economic} shocks equivalent to COVID-19 clarify the decline, Olawepo-Hashim argued that Nigeria nonetheless maintained GDP ranges above $300 billion throughout the pandemic years.
“There was no COVID up to now yr. But in simply two years, GDP fell from over $300 billion to $230 billion,” he stated.
Olawepo-Hashim dismissed projections by the Worldwide Financial Fund (IMF) that Nigeria may grow to be Africa’s third-largest economic system by 2026, describing them as deceptive and politically handy.
“Once you lose 50 per cent of your GDP, and you then publish 4 per cent development, you might be nonetheless deeply in deficit. That isn’t actual development. This Mickey Mouse development of 4 per cent can’t get Nigeria out of this quagmire,” he stated.
He contrasted present projections with Nigeria’s historic efficiency, noting that the nation achieved 5.5 per cent development in 2000 and 9.5 per cent by 2003 underneath Obasanjo.
“What Nigeria wants now is just not beauty reform. You want daring intervention — a Roosevelt-style New Deal — to get out of this degree of {economic} despair,” he added.
Olawepo-Hashim criticised the Tinubu administration’s {economic} reforms, arguing they lack innovation and merely recycle insurance policies first launched throughout the Structural Adjustment Programme of the Eighties.
“There’s nothing modern on this so-called reform. We’ve been right here since 1986. The distinction is that there was extra self-discipline then. At this time, what we see is huge indiscipline,” he stated.
Questioning official claims of a strengthening Naira and easing inflation, Olawepo-Hashim stated the true indicator of {economic} well being is the lived expertise of residents.
“One of the best indicator is the pockets of the folks. Buying energy has been worn out. We have now 18 million kids out of faculty. Individuals can’t get jobs. These realities disprove no matter information is being celebrated,” he stated.
Whereas acknowledging improved oil production ranges, he argued that Nigeria shouldn’t be celebrating output of 1.8 million barrels per day given its inhabitants and useful resource base.
“Saudi Arabia, with about 40 million folks, produces roughly the identical. Nigeria shouldn’t be drumming and dancing about that,” he stated.
He additionally questioned why the Naira stays weak regardless of larger oil production, subsidy removing and decreased gasoline imports resulting from native refining.
“Fundamental economics says larger greenback provide ought to strengthen the Naira. So why is it nonetheless weak? Solely the central {bank} governor and the finance minister can clarify that,” Olawepo-Hashim stated.
He alleged that cash laundering and speculative demand by politically uncovered actors have distorted Nigeria’s overseas alternate market.
“You give trillions of Naira at FAAC, and subsequent week persons are within the bureau de change shopping for {dollars} and storing them. That greenback is just not going into production. So that you don’t have a rational market,” he stated.
Wanting forward, Olawepo-Hashim stated that if given the chance to guide, his first priorities could be the oil and electrical energy sectors, which he described as foundational to {economic} restoration.
He reiterated his declare that Nigeria may develop right into a $4 trillion economic system inside eight years, arguing that double-digit development is achievable by way of aggressive infrastructure funding and the usage of sovereign ensures quite than elevated taxes or austerity.
“Nigeria has huge infrastructure deficits. Through the use of sovereign notes to offer consolation to traders, we will stimulate as much as $500 billion in funding in two years with out borrowing or elevating taxes,” he stated.
On issues about reform ache, Olawepo-Hashim insisted his method would concentrate on development stimulation quite than burdening residents.
“A Roosevelt plan is just not extra taxes. It’s utilizing the sovereign energy of the state to stimulate development. Buyers don’t want lectures; they want confidence,” he stated.
Addressing issues about inner divisions throughout the Peoples Democratic Get together (PDP), Olawepo-Hashim blamed the ruling APC for destabilising opposition events however stated latest courtroom rulings have not less than created a pathway for nominations and inner decision.
“Democracy is a law-governed course of. We have now moved from whole paralysis to some degree of recognition. That provides folks hope that the get together can operate once more,” he stated.
Boluwatife Enome
Times Nigeria