Slump in oil prices neca wants fg to guard against another recession

The Nigerian Economic Summit Group (NESG) has called on the Federal Government to take proactive measures to mitigate the impact of a potential recession following the recent slump in oil prices.

According to a statement issued by the NESG, the group is concerned that the current economic situation in Nigeria is vulnerable to external shocks, particularly the decline in oil prices, which could lead to a recession.

The NESG, which is a private sector-led organization that aims to promote economic growth and development in Nigeria, urged the government to take immediate action to address the challenges facing the economy.

Some of the measures recommended by the NESG include:

  1. Diversification of the economy: The NESG called on the government to diversify the economy by promoting non-oil sectors such as agriculture, manufacturing, and services.
  2. Fiscal discipline: The group urged the government to maintain fiscal discipline by reducing its reliance on oil revenues and increasing its revenue from non-oil sources.
  3. Investment in infrastructure: The NESG recommended that the government invest in infrastructure such as roads, bridges, and power generation to improve the business environment and attract foreign investment.
  4. Monetary policy reforms: The group called for monetary policy reforms to address the challenges facing the financial sector, including the high cost of borrowing and the lack of access to credit for small and medium-sized enterprises (SMEs).
  5. Social protection programs: The NESG urged the government to implement social protection programs to protect the most vulnerable members of society from the impact of a potential recession.

The NESG also called on the government to provide a clear roadmap for the implementation of its economic policies and to engage with the private sector to ensure that its policies are effective and sustainable.

In conclusion, the NESG's call for the government to take proactive measures to mitigate the impact of a potential recession is timely and necessary. The government must take immediate action to address the challenges facing the economy and to promote economic growth and development in Nigeria.