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Another recession is possible from next year – Gov. Yari warns

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Another recession is possible from next year – Gov. Yari warns

The Nigeria Governors Forum (NGF) has advised returning and newly elected state governors to prepare for tough times in governing their states. Particularly, the NGF warned that there might yet be another cycle of recession from mid-2020 to the third quarter of 2021.

Chairman of the group and governor of Zamfara State, Abdulaziz Yari, gave the grim advice during the induction programme organized for the incoming state executives at the NGF Secretariat, State House Conference Center in Abuja on Monday.

What Yari said: Yari attributed his grim outlook to the drop in oil prices which occurred in mid-2014. He said, “This scenario is a wake-up call for all of you to be prepared to face this kind of challenge, especially since there is the possibility of another cycle of recession by mid-2020 and which may last up to the third quarter of 2021.”

He urged the officials to look inwards to internal revenue generation which are currently “nothing to write home about.”

“Borrowing is never a reliable alternative to solving our economic problems,” Yari said.

Vice President Yemi Osinbajo told the group that they have a tremendous privilege which comes with responsibilities.

He said, “Those responsibilities are multiplied by the fact that most of our people are extremely poor. Large numbers are unable to afford good healthcare and malnutrition remains a major problem. Children in many of our states run the risk of being permanently mentally stunted because they are malnourished.”

Osinbajo thus stressed that states must work towards earning more internally generated revenue in order to effectively manage their economies.

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