‘Nigeria is near 100% idle capacity’

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DEBT Management Office, DMO,
has described the current state of
Nigeria’s economy as near 100 per
cent idle capacity, but that it should
be seen as opportunity, as it implies
that the flexibility to grow the
economy is high.
The Director-General of DMO,
Dr. Abraham Nwankwo said that
“The difference between Nigerian
and other countries facing similar
economic challenges is that those
countries do not have the same
opportunities we have in Nigeria.”
He expressed optimism that the
naira and foreign exchange reserves
would recover in the coming years
as the impact of government’s
economy diversification plan begins
to crystalise in the economy.
Specifically, he said, governments’
efforts at revalitalising the
agriculture sector, solid minerals,
manufacturing and taxation
will have massive impact on the
economy in the next three to five
years.
He said with government’s
diversification project in full gear,
Nigeria’s economic growth and
development will no longer be
determined by movement in the
prices of crude oil.
He said a lot of revenues will be
derived from taxation going adding
that the country’s low comparative
tax revenue to Gross Domestic
Product (GDP) ratio which stands
at about seven per cent, against 18
per cent average in most developing
countries, would be improved on as
the country begins to gain strength
in production.
He said that by simply paying
taxes by individuals and corporate
bodies, government can secure
the needed fund to fund major
developmental projects.
“You can see that in the
manufacturing sector, some factories are operating below capacity. But
with the ongoing implementation
of President Muhammadu Buhari
policy on diversification of the
economy and revatilising the
power infrastructure, the sector will
pick up and create more jobs for the
people,” he said.
Nwankwo said achieving selfsufficiency
in power will enable
government generate more income;
companies will be able to pay more
taxes, thereby helping government
diversify its revenue bases.
“In the next five to seven years,
solid minerals will be exported. It is
possible that in the next five to seven
years, the whole picture of Nigeria
will be a complete turnaround
because of government’s economy
diversification plan,” he said.
He urged Nigerians not to be
depressed because of drop in crude
oil prices.
“We have no reason to be
depressed …Read More

Source:: Nigerian Pilot