Tag: recession

  • Investors sell shareholdings to cushion recession

    Investors sell shareholdings to cushion recession

    Institutional and individual major investors are selling their shareholdings  to cushion the effects of the  recession and cash crunch The Nation has learnt.

    Transactional documents on recent major sales showed that many institutional investors are increasingly turning to the stock market to source for funds through secondary shares sale to bridge finance gaps.

    Reliable market sources  confirmed the shares sale by major investors.

    In one of the transactions, a commercial bank, with headquarters in Lekki, Lagos State, sold its major stake in Nigeria’s main securities depository and clearing company, Central Securities and Clearing System (CSCS) to a United Kingdom-based investment firm in a deal that raised more than N1billion. The transaction raised the UK’s investment firm and strengthened its position as the second largest shareholder in the CSCS, following that of the Nigerian Stock Exchange (NSE).

    CSCS, incorporated in 1992, is the depository and clearing and settlement company for the stock market. The company operates a computerised depository, clearing, settlement and delivery system for transactions in shares and other securities listed on the NSE and the NASD OTC.

    Six major shareholders, including the NSE, four commercial banks and the UK-based firm, held the majority shareholdings of 62.35 per cent. The latest transaction, from a major shareholder with less than five per cent equity stake, added about three per cent equity stake to the majority shareholding of the UK-based firm, thereby increasing the group-of-six’s controlling equity stake to about 65.4 per cent equity stake, leaving the sundry retail investors with 34.6 per cent equity stake.

    In another deal, a Falomo, Ikoyi, Lagos group with investments in industrial and consumer goods, sold a major stake in the upstream company, Seplat Petroleum Development Company PLC, in a transaction described as indirect fund raising.

    The group, with many foreign subsidiaries, has repeatedly complained of the financial crunch engendered by the foreign exchange crisis, which has limited primary capital raising activities.

    Market sources said many investors were selling off or selling down their shareholdings to offset accruing liabilities or buoy up their businesses in the face of the tight economic situation.

    The sources, who craved anonymity because of transactional rules, said institutional investors were, in many instances, being forced to sell to boost their liquidity and stave off financial pressure, citing a Lagos-based insurance company that had to cut initial price for a special placement by 50 per cent to attract a major investor.

    Market sources said the increasing selling pressure from major institutional investors has compounded the pressure hitherto from retail minority investors, who had turned to monetising their shareholdings to raise funds.

    Market sources said the selloff has substantially undervalued most Nigerian companies and could expose them to the risk of aggressive foreign acquisitions.

    Against most analysts, the stock market has come under intense selling pressure this quarter. With inflation satnding at 18.33 per cent and average year-to-date return at the stock market at -10.9 per cent, inflation-adjusted return at the stock market has plummeted to -29.2 per cent. Major companies in the banking, oil and gas, consumer goods and industrial goods sectors have performed below average.

    Quoted companies on the NSE lost N218 billion in market values last week in all-week negative trading sessions that brought the market down to its lowest point in the past five months.

  • Oshiomhole: recession stopped my dream for Edo

    Oshiomhole: recession stopped my dream for Edo

    Former Edo State Governor Adams Oshiomhole has said the sudden crash in the state’s finances prevented him from achieving his dreams for the state.

    The former governor said his administration was unable to execute already designed projects in many communities because of cash crunch.

    Oshiomhole spoke at the weekend at Auchi during a grand reception organised for him by political and traditional leaders in Edo North Senatorial District.

    He said he did not deliberately leave the projects undone or uncompleted, adding that the finances were not available.

    The former governor, who apologised for getting late to the event, said he had to attend the All Progressives Congress (APC) rally in Ondo State because Edo State needed a friendly neighbour to do business with.

    He apologised to those he might have offended but reiterated his stand on those he said he might also have offended while instilling discipline.

    Oshiomhole said his successor, Godwin Obaseki, was aware of the Edo dream and would surpass his achievements.

    He said: “There were many things we were committed to doing across the state, which we didn’t do due to the sudden crash in our finances.

    “In Akoko-Edo, there are many communities that need to be connected to the economy of the state. There were so many things to be done, which we couldn’t do. No government will be able to solve all the problems.

    “I thank God we have another APC governor, Obaseki. He understands the problem and knows what to do. We did our best in the 192 wards but we still have challenges. I know Godwin will tackle those challenges.

    “I want say I am sorry to those I may have offended without knowing, but the ones I did to instil discipline, I stand by it.

    “We were not perfect, but I thank you all for tolerating our excesses. Obaseki will do better than me. We pray God to guide him because I am happy he is a worthy successor.”

    Political leaders, who spoke at the event, urged the Federal Government to give Oshiomhole an assignment where he would use his abundant talents to serve Nigerians.

    A former Secretary to the Edo state Government (SSG) Simon Imuekhemen said the nation must not allow Oshiomhole’s abundant talents to be wasted.

    He said: “We want Oshiomhole to play the type of politics he played in Edo State at the national level so that Nigerians will benefit from him too. We want Nigerians to benefit from his talents. We don’t want him to be confined where people will not benefit from his intelligence.

    “We’re today proud to come from Edo North because Oshiomhole made all of us proud. The three senatorial districts of the state have benefited from Oshiomhole’s administration. I can tell you that Oshiomhole did three projects that we are very proud about here in Edo North. Firstly, the road from Ekperi to Anegbete; second is from Jattu to Emegbai and the Auchi erosion project.

    “We believe that no other governor would have done these three projects for us if he was not our son. We hold him in very high esteem and he is our great son. We know that Obaseki is going to do well, especially when he has a strong politician like his deputy, Philip Shaibu. We have no fear at all. This team will do wonderfully well for our people.”

     

  • Recession: Ahmed outlines survival strategies for Kwara councils

    Recession: Ahmed outlines survival strategies for Kwara councils

    Following a huge decline of federal allocation to local and state governments in the country in the face of current economic downturn, the Kwara State government is devising different survival strategies for the local councils in the state.

    No doubt, shortage of funds is a major challenge affecting the efficiency of local councils. For the councils to perform maximally there is a need for them to have a sustainable financial base, which will allow them meet their financial commitments.

    The councils also lack the capacity to generate substantial Internally Generated Revenue (IGR) that can assist them in the discharge of their obligations.

    As a way of shoring up revenue generation in the councils, the state government carried out a remarkable IGR reform, which subsequently birthed the LGs’ partnership with the Kwara State Internal Revenue

    Service (KWIRS). The process, so far, has led to a rise in the IGR of the councils.

    Declaring the progress made in the revenue generation for the councils,

    KWIRS Chairman, Dr. Muritala Awodun said that the revenue service collected N168.6 million for the sixteen local government areas in the state in the last nine months.

    He added that the service plans to increase that amount to about N200 million in the last quarter.

    According to him, “The total local government revenue collected by KWIRS in the first quarter was N32.8 million, second quarter the total amount was N53.2 million. You can see that there is a progressive improvement. In the third quarter we collected N82.6 million and we are believing that in the fourth quarter we will definitely be above N100 million if not N200 million; because there are some things that are supposed to manifest in this quarter.

    “For instance this is the quarter for the collection of citizenship certificates by students as admissions will be processed at the Kwara State Polytechnic and Colleges of Education and some other things like tenement rates for communication masts which we are pursuing aggressively with the communication companies. If they come in this quarter as expected it is going to be substantial. This will ensure better performance than the third quarter.”

    Dr Awodun gave a breakdown of the amount collected in July as N20.8 million, August N31.3 million and September N20.5 million.

    He put the number of citizenship certificates collected at 8,420, amounting to N21.6 million.

    The chairman added that six of the 16 local government areas sold over 1,000 citizenship certificates.

    No doubt, one of the major challenges facing local councils is that they have an over-bloated workforce largely due to redundancy. Bloated workforce has crippled the finances of the councils leading to delays in salary payment. In addition, several people on the payroll of the councils are not genuine staff of the councils, it was gathered.

    The Nation’s investigation revealed that ghost workers abound in the councils and this has affected their ability to meet financial obligations such as payment of salaries. This is why the state government is conducting a staff verification exercise to identify and flush out ghost workers, which will assist in blocking wastages that have hitherto weighed down the finances of the councils. The verification exercise will ensure that the monthly recurrent expenditure of the 16 local councils is reduced, thus freeing up more revenue for their operations. In his several meetings with the former council chairmen, Governor Abdulfatah Ahmed always emphasized the need to block leakages and reduce the cost of governance, which are necessary to ensuring the financial viability of the third tier of government.

    Another measure the state government has adopted to avoid cost was the recent inauguration of Transition Implementation Committees (TIC) for the state’s 16 local government areas.

    The tenure of the executive members of the councils expired on November 10th. Hitherto, the state government had said that it does not have the means of conducting elections in the council until its economy improves.

    During their swearing-in Ahmed charged that TIC members to clear backlog of salaries and pensions in their respective local governments within the shortest possible time.

    Ahmed, who directed the committees to make financial prudence their watchword, advised them to prioritize low hanging infrastructure that will bring swift relief to the people. “In this regard, you are to avoid making unnecessary appointments, shun ostentation and avoid any conduct capable of calling your integrity into question,” he said.

    The governor promised the state government’s support to the local government councils within available resources and guidance to see them through the difficult times.

    The governor said that when the report of the State Committee on Personnel Database Development is submitted, monthly recurrent expenditure at the local and state levels will reduce, thus freeing funds for infrastructural development.

    Ahmed reminded the people of the state on the need to pay their taxes and levies regularly for the government to have funds required for the infrastructural development of the state, adding that tax defaulters would face the wrath of the law.

    “Just as the welfare of citizens is obligatory on government, the payment of taxes is compulsory for all eligible individuals and businesses. You cannot expect to benefit from services provided by government from taxes and yet refuse to contribute to paying your tax”, the governor said.

    He said that “government at state and local government levels will, therefore, not hesitate to invoke the law to punish those found guilty of tax avoidance or evasion.”

    Ensuring high level of transparency and accountability in the management of financial resources of the councils is also important as parts of efforts to reform their financial structures.

    To this end, Governor Ahmed directed that a meeting of council officials and stakeholders within the local governments must hold every month to discuss openly details of their allocation and the utilization plan.

    Officials of the Nigerian Union of Local Government Employees (NULGE) and other labour unions in the state are always invited to witness the proceedings of the state Joint Accounts Allocation Committee (JAAC) meeting. The TIC chairmen were also warned by Ahmed to avoid making unnecessary appointments, make prudence their watchword, shun ostentation and avoid any conduct capable of calling their integrity to question.

    A faction of the Peoples Democratic Party (PDP) in the state loyal to the Ahmed Makarfi-led PDP has hailed the appointment of the TIC.

    Chairman of the faction, Prince Sunday Fagbemi said that, though he is not in support of the APC led government in the state, he added that the postponement of election into the councils would put his members in good stead to prepare for the polls anytime it is called.

  • How to manage relationships during recession

    DEAR Harriet, Your column is very practical and real to life. Thanks for the good work. I am married with children.

    The situation of things at the moment in my home is not well due to the economic situation in the country. This is affecting our relationships. Please, I need your counsel on what to do.

    Thanks.

    Name withheld, Uyo.

     

    Thanks for sharing your situation. There is no better time to give counsel on the effects of recession on families and ways for families to cope at this crucial period.  You are not alone. The situation of things in the country is not limited to a particular sect, or family. Every home, rich or poor, is affected.

    The high rate at which bread winners are losing their jobs is alarming. As a result, families are faced with a lot of challenges. The high level of pressure everywhere is affecting the general wellbeing of individuals.

    For instance, a man who lost his job is likely to be stressed out with worries, not knowing where and how he is going to cater for his family, even the one with a job is not certain about his tomorrow. Such a person at home may start exhibiting  attitude that is never shown and in most cases they vent their frustration or anger on their spouses and children, which ideally is not proper.

    If this situation is not managed very well, it might lead to  increase in alcohol intake, drugs, verbal or physical abuse, mood swing, depression, sleepless nights, fears, anxiety, high blood pressure, mental health and suicide attempts.

    Suicide attempt is one aspect that is getting ground in our society today because a lot of people are not turning to the right channel in dealing with challenges, actually visiting a counsellor or a therapist when faced with challenges to pour out your heart (an outlet) is yet an aspect that is not really embraced by a good number of people.

    The thought of committing suicide is considered an abomination, but today we hear and read of people taking their lives and the question is why? God, our creator, is the owner of life. Therefore, nobody has the right to take his or her life.

    One thing we must understand is that whenever God plants a challenge in one’s life, He gives us the right tools to use in order to overcome the challenge. Remember, as humans on earth, there will always be one problem or  another, but only with the right attitude and patience, victory is sure.

    However, in a time like this, understanding problems that can hinder or prevent people from achieving effective personal functioning is very important. When people visit counsellors most times, they are aware of a number of problems that are causing them difficulty. These are described as presenting problems, but due to the complexity of human nature, frequently there are more problems, deeper issues that make a person’s life a bit complicated.

    So situation like recession strain might actually trigger violence or abuse. Some people are very aggressive these days.

    In addition, the way men and women deal with crisis are different. Men regard job loss or no income as a major effect on their identity. This takes a great toll on their personality, while the attitude of women is totally different. They seek alternative immediately.

    The family relationships suffer a great blow once situations are not manged properly. Parents or guardians who are worried about their financial stability often don’t have the patience to reason with children or respond to misbehaviour appropriately.

    The feeling of frustration can lead to unnecessary nagging, absent-mindedness, harshness to loved ones, making a person unapproachable for discussion. Every responsible man wants to provide for his family no matter the circumstance. So the feeling of not been able to take up his responsibility effectively can stir up inconsistent behaviour.

    Recession is a phase that will not last forever, but the effect on family relationships afterward is of great concern that must not be neglected. More tips that might be of help to the family in a time like this are: Families must learn to cut down on their expenses and make necessary changes in certain aspects. Work with affordable budgets.

    Give adequate information to members of your family about the real situation of things. Call for a family meeting and explain to all the clear situation of things and changes that will be taking place so that there will be a clear understanding.

    Search for alternative sources to generate income no matter how little. Learn not to worry about what you cannot change. Instead, try to manage the situation. Avoid stress for a sound mind and body.

     

    Harriet Ogbobine is a counsellor and a motivational speaker. Send your questions and suggestions to her on bineharriet@gmail.com or txt message only 08054682598. You can also follow her on twitter: @bineharrietj.

  • Recession: Parents withdraw children from private schools – Diete-Spiff

    As the recession bites harder, the founder of Charles Dale Memorial International School, Port Harcourt, Chief (Mrs.) Victoria Diete-Spiff, has lamented that parents were retrieving their children from private schools because of the economic crisis in the country.

    Diete-Spiff worried that parents were now taking their children to public schools adding that private schools were facing hard times.

    Diete-Spiff, who spoke after receiving Academic Icon Award from National Association of Oduduwa Students during the 10th Anniversary of the institution, also advocated for government to give grants to private schools in the country.

    The proprietor noted that private schools were the drivers of academic excellence in a nation and that they needed encouragement.

    Diete-Spiff said, “Most schools proprietors are anticipating that the recession is going to be rough. Most parents during this recession are having problem in connection to finance. Most of them are retrieving their children.

    “Private school is the bedrock of education in Nigeria and for somebody to withdraw his ward from private school it means a lot.

    “Government should improve the standard of education in Nigeria at least by providing grants for private schools. In other countries the government gives grants to private schools but it is not done here.

    “Government should do what needs to be done. Qualitative education is necessary because that is what the country needs to development.”

  • Fighting recession with research

    Fighting recession with research

    Where lies the solution to the economic recession? In research, say experts, who urge the government to tap into the works of researchers  OLUWATOYIN ADELEYE reports

    It is no longer news that Nigeria is in a recession. Getting out of it is the major task confronting the government which has been exploring optisms to get the economy back on track. To experts, Nigeria should begin to look inward for its economic revivals pills.

    They spoke of the need to reverse the import-export imbalance that leaves Nigeria dependent on foreign goods at a exorbitant cost.

    Federal Institute of Industrial Research, Oshodi (FIIRO), Director-General Dr Gloria Elemo said at a biotechnology conference held at the Covenant University that the imbalance was costing Nigeria so much, especially as the value of naira continues to fall.

    She said local research could provide solutions to the imbalance and called for investment in such efforts.

    But, beyond investments, she said Nigerians and the local industry must have faith in made-in-Nigeria goods.

    “There is no biotechnology industry in Nigeria. No human vaccine is produced in Nigeria. We import everything. The government spends about N12 billion annually on vaccine importation and $3.6 billion annually on imported enzymes, which we create at the institute. We are just making other nations rich. Have we ever imagined a Nigeria where standardised products are developed locally from our readily available plants and herbs?”

    Emphasising that Nigeria’s problems could not be solved without research, Dr Elemo added:  “National development aims at raising the standard of living through increasing income, better education, more jobs, among others. A country’s potential for economic growth is greatly influenced by its endowment in terms of physical and human resources. There is no way you can create jobs without creating industries, industries without innovation and innovation cannot come without research. The time when research efforts could not solve Nigeria’s problem is now over.”

    Last week, some academic staff of the University of Lagos  (UNILAG) displayed competitive research works that can solve local problems.

    Professor of Engineering, David Esezobor believes that his thermal food processing food chamber can increase the scale of drying food without the attendant health hazards associated with local drying methods.

    Fish or other foods for drying could be hung horizontally in the chamber which rotates while drying.

    He said his chamber would make stock/dry fish produced in Nigeria more acceptable for export as well as increase their shelf life. What is more, he said the chamber is environmentally friendly because it uses agro-forestry waste for energy.

    Esezobor said: “This is a novel thermal drying technology for food processing. It can process variety of food products such as meat, fish, snail, bush meat at the same time. It has a high capacity of up to three to 4.5 metritons per batch. That means if the average kg for fish is 1.5 kg, then in a batch, you can process 3,000 fish and retain their by-products of cod liver oil for further processing.

    “I was inspired to build this chamber because of the difficulty in preserving food products. You see these fish farmers, after harvesting their products, and they have a great harvest, they would not be able to preserve them and there would be spoilage. But with this product, you can preserve your food for up to two years and they can even be exported.

    “If you look at the chemical analysis, they are of very high quality.  The chemical quality of the traditional method of smoking fish is cancerous, due to incomplete combustion of the fuel, when they use firewood, charcoal, and others. This product is here to address that issue. It is also not manually operated and the fuel is cheap (agroforestry waste). It rotates by itself, while the fish hangs from the top so you just close the chamber and wait for the required number of time and the product would be processed all around.”

    Boosting local production of goods and services and improved infrastructure will help Nigeria become more self-sufficient, said Mr Bello Mustapha, a social scientist.

    His research work on Infrastructure and Industrial Sector Performance showed that factors like poor roads, poor electricity supply and others do not have as much damning effect on low-level productivity as believed.  On the contrary, Mustapha said corruption and government policies had more debilitating effect on productivity.

    “There is the popular belief that infrastructural service should have a strong impact on industrial and manufacturing performance of a country. In this study, we discovered that electricity generation, telephone usage, road infrastructure, among others, actually have a very limited impact on the manufacturing industry. Any good road would have a positive impact on industry performance, but it is actually quite insignificant, because it does not enhance the manufacturing capacity of the industries in Africa. Rather, factors like control of corruption, government policies, among others are the major factors that affect the manufacturing industry,” he said.

    To address the problem, Mustapha, a Ph.D student, said the government ought to formulate development-friendly policies, while addressing corruption which undermined them.

    High level of youth unemployment is a factor of socio-economic underdevelopment.  This is exacerbated by lack of skills or limited opportunities to gain technical and entrepreneur skills.

    Dr Ayodele Ogunleye and Dr Blessing Anyanwu believe that this can be addressed by leveraging on technology to provide access to knowledge to many more youths than the conventional education system.

    The duo came up with an online entrepreneurship university that would allow students to be trained by industry experts with ease.

    Ogunleye said: “Our vision is to help build a fully industrialised Nigerian society through our entrepreneurship educational training programmes for the award of diplomas and degrees. The aim is to ensure that we develop the entrepreneurship skills of all Nigerians so that they can pursue solely entrepreneurship courses without having to show up physically. Many universities have entrepreneurship embedded in their curriculum but this one is focused purely on a full entrepreneurship degree.”

    The associate professor explained that the students would also get hands-on one-on-one sessions in laboratories built at strategic points from time to time.

    For Dr Blessing Anyikwa, an adult education expert, the economic well-being of Nigeria is dependent on the well-being of farmers who produce the food that feeds the nation.

    With limited education and access to technology, Dr Anyikwa said the contributions of farmers to the GDP, particularly rice farmers in Abia State, whom she studied, would also be limited.

    To address the limitation, Dr Anyikwa has come up with a curriculum to hone the skills of farmers, who need a peculiar kind of education because of their nomadic nature.

    She said: “These farmers are not really educated formally and because they migrate, it is difficult for them to have any formal education. So I had a timing model executed for them, a curriculum prepared and intervention programme on how to train them to read and write as well as learn how to build new technology on rice production. It is known that people from that area eat ofada rice and because they don’t have technique for the modern way of serving rice, there is a lot of stone in it. But the intervention is for the creation of modern rice processing technology. That way, they will have increase in production, which increases their income and a better socio-economic life.

    “Also, If the intervention is done on a larger scale, it turns Nigeria around. We don’t have to depend on foreign foods. And we would have more of such rice at cheaper price, which is far more nutritious than imported rice.”

    For the industry to have faith in local research, however, Chairman, Vitafoam Nigeria PLC, Dr Bamidele Makanjuola, said Nigerian researchers ought to be more disciplined about following through with their work.

    Makanjuola, while delivering the keynote address at the UNILAG annual research conference and fair last week, said many researchers discouraged private organisations from investing in their works because they often abandoned the project midway.

    Makanjuola shared disappointing examples of his organisation’s experience working with local researchers, who failed to complete their part of the bargain.

    He said: “Between 2010 and 2012, two leading universities were engaged to research the local extraction and refining of castor oil.  Vitafoam committed a substantial amount of money to the projects, with no tangible outcome. Eventually, the institutions unceremoniously abandoned the project.

    “Most recently, one of Vitafoam’s subsidiaries (Vitapur Nig. Ltd) needed to generate some technical data for its marketing communication materials. Samples of our manufactured insulated materials were passed on to a university faculty that had the technical competency to handle the assignment. Despite ready availability of funds, the job remained uncompleted for over 18 months. The contract has since been re-awarded to a laboratory in South Africa.”

    However, Makanjuola said his firm still had faith in Nigerian researchers and technicians.  He said efforts were being made to improve industry-varsity partnership.

    “Vitafoam is currently attempting to restructure its strategic approach to building a more-enduring relationship with tertiary institutions like yours (UNILAG),” he said.

  • Comic relief during recession

    There are times people laugh because they don’t want to cry. This kind of laughter is mirthless but helpful because laughing is perhaps more therapeutic than crying.

    The country’s biting economic recession and its bitter socio-economic consequences have a tragic tone, but some characters help to tone down the intensity of the tension.

    One of these useful actors is former Niger State Governor Babangida Aliyu. He gave a rare insight into the country’s troubling economic situation at a public event in Minna, the Niger State capital, on November 12. It was the second edition of the NDEDI annual lecture series, and the theme was “The Emergence of the Current Economic Realities: Expectations on the part of government and the private sector.”

    A report said Aliyu “called for a review of the 1999 Constitution to make it mandatory for all the tiers of government to save from their revenue.” It added: “He further said his administration was unable to save for the rainy day because it was handicapped by the 1999 Constitution.” Please, hold back your laughter. It’s not yet laughing time.

    Now, let’s hear it straight from the horse’s mouth. Aliyu was quoted as saying: “Such a constitutional provision will take care of the type of situation we have on our hands where about 26 states in the country cannot pay workers’ salaries. What the constitution provided for was for all amounts generated to be put in the federation account and shared between the three tiers of government.”

    The comedy continued as Aliyu said: “The constitution did not say we should save anything; what the constitution said is that we should generate and share. It will be illegal for us to say we want to save, the law does not allow it. The 1999 Constitution did not think of any rainy day; it says all money generated should be put in a pool and shared, to the three tiers of government.”

    This line of thought is food for thought. So, the country must blame the constitution for the current economic mess, and not the operators of the constitution who are not robots and are not expected to act like robots. To argue that the constitution’s alleged silence on saving is to blame for imprudent money management at governmental levels, as Aliyu did, is really ridiculous.

    Aliyu’s laughable analysis causes laughter, but it is a cause for concern. It provides comic relief in these hard and harsh times; but, seriously, it does not reflect the serious reasoning the country expects from its leaders.

  • ‘Recession is about perception’

    The General Leader Cherubim and Seraphim Movement Church, Surulere District Lagos, Special Apostolic Prophet Sunday Korode, has assured God will fix the recession biting hard in the nation.

    He spoke at the 2016 adult harvest thanksgiving service in Lagos.

    He urged Nigerians to support government efforts to tackle corruption.

    According to Korode: “At this recession period, I would like to say we are progressing if we remain committed to the Lord.

    “That is to say our spiritual life must appreciate. The truth of the matter is that it is all about perception and as a man thinks so he becomes.

    “If you think you are in a recession, you will be receding and if you think otherwise, it will simply turn out the way you think.

    “There is nothing like reality, perception is reality. The way we construct our social reality that is the way it becomes.”

    He went on:  ”At the spiritual level, you don’t think negatively, it is the positive attitude that guides how you become.

    “What you should know is that God is able to convert what you think is bad to what is good.

    “The first point of call is the collective attitude of Nigerians and that is to start thinking right and acting right.”

    Korode explained that the change in any society must begin with the people involved, noting that President Muhammadu Buhari had set a template that must start with individuals.

  • ‘How to fight recession’

    Former member of the Old Western Region House of Parliament, Elder John Oladeji Adeyemo,  has urged Governor Ibikunle Amosun to harness the potential in local rice production to boost Ogun State’s socio-economic development.

    He spoke at a thanksgiving service for his son, Pastor Toyin Abayomi Adeyemo’s elevation to Divisional Overseer of Christ Gospel Mission International, Lagos and Ogun chapter.

    He said there were many benefits if the government could shift attention to local rice production, adding that it would be a major factor for the state to get out of recession.

    ”I want to draw the attention of Governor Amosun to local rice production as it will be a major factor for the state to be out of economic recession.

    “Research conducted few years back shows that, demand for local rice intake in a social event is higher  than that of the refined rice,” Adeyemo said.

    He said the state is blessed with vast  land that can boost the production of the local rice variety in high quantity as well as exporting it to other African countries.

    Speaking on Amosun’s performance with regards to infrastructural development, Pastor Adeyemo said the governor should focus on developmental drive, saying he should not be distracted.

  • ‘Nigeria heading from recession to depression’

    ‘Nigeria heading from recession to depression’

    A professor of Economics, Innocent Eleazu has warned that the current economic recession could turn into depression if the Federal Government fails to find and apply the right solution to the problem.

    Eleazu speaking to newsmen in Aba, the commercial hub of Abia State, urged state governors to pay their workers’ salaries, look inwards to develop the mineral and agricultural resources in their states to encourage spending among civil servants and increase local production as a means of improving their Internally Generated Revenue (IGR).

    According to him, the economic solution many people are proffering in solving the problem of recession is not what should be done in order to come out of the economic quagmire.

    He warned that further borrowing could further deepen the situation.

    The professor who was due to deliver a lecture in Aba titled, “Recession in a Mono Economy: Challenges, Consequences” on November 15, said he feared that Nigeria does not have the foreign reserve to fall back to should the economy go into depression.

    Eleazu debunked the notion that the current recession was caused by the Buhari administration, saying that the economy started depleting about four years ago.

    He said that the only solution was the diversification of the economy, as did the United States of America (USA) when they faced a similar situation between 2007 and 2009.

    “Since the end of the Second World War, USA has had 12 recessions, the hardest and most severe was the one in 2011 which ended in 2012. In all, they learned from the recessions and came out better.

    “In our own case, we have to truly go back to land, get the grassroots farmers well mobilised, not the political or civil servants farmers. Government should not be involved beyond this level because no government agricultural policy has worked over the years”.

    He also urged government to assist entrepreneurs and artisans in order to increase productivity.

    The economist said he was sceptical about Nigeria’s borrowing from the International Monetary Fund (IMF) to solve the present economic problem, stressing that such steps would increase the debt profile of the country.

    He said, “Since some people in the country are richer than Nigeria, the Federal Government should raise the needed funds internally instead of external borrowing with its attendant high interest rates”.

    Prof Eleazu who claimed that he was one of the economists in USA the Democrat party used their input to evaluate their economic policies, however regretted that policy makers in Nigeria have not made use of reports experts submitted during the ousted President Jonathan’s regime which he said if implemented, would help to turn the economy around.

    “In 2007, the past administration in the country invited me to Abuja and gave me the task of exploring the talents in the youth. After a thorough research, I submitted my report on May 29, 2007, but nothing was done on that till this moment,” he said.