The past years have witnessed huge flows of oil
revenues. From 2010 average oil prices were $100
per barrel. But economic and security conditions
were deteriorating. We campaigned and won the
election on the platform of restoring security, tackling
corruption and restructuring the economy. On our
arrival, the oil price had collapsed to as low as $30 per
barrel and we found nothing had been kept for the
rainy day. Oil prices have been declining since 2014
but due to the neglect of the past, the country was
not equipped to halt the economy from declining.
The infrastructure, notably rail, power, roads were
in a decrepit state. All the four refineries were in a
state of disrepair, the pipelines and depots neglected.
Huge debts owed to contractors and suppliers
had accumulated. Twenty-seven states could
not pay salaries for months. In the north-east,
Boko Haram had captured 14 local governments,
driven the local authorities out, hoisted their
flags. Elsewhere, insecurity was palpable;
corruption and impunity were the order of the
day. In short, we inherited a state near collapse.
On the economic front, all oil dependent
countries, Nigeria included, have been struggling
since the drop in prices. Many oil rich states have
had to take tough decisions similar to what we
are doing. The world, Nigeria included has been
dealing with the effects of three significant and
simultaneous global shocks starting in 2014:
1. A 70% drop in oil prices.
2. Global growth slowdown.
3. Normalization of monetary policy
by the United States federal reserve.
Our problems as a government are like that of
a farmer who in a good season harvests ten bags
of produce. The proceeds enable him to get by
for rest of the year. However, this year he could
only manage 3 bags from his farm. He must
now think of other ways to make ends meet.
From day one, we purposely set out to correct
our condition, to change Nigeria. We reinforced and
galvanized our armed forces with new leadership
and resources. We marshaled our neighbours in a
joint …Read More
Source:: Nigerian Pilot