IMF’s ranking of Nigerian economy

Adamolekun faults IMF’s ranking of Nigerian economy ON NOVEMBER 15, 2016—A former World Bank specialist, Professor Ladipo Adamolekun has picked holes in the recent   ranking of Nigeria’s economy as the biggest in Africa by the International Monetary Fund, IMF. ADVERTISING in Read invented by Teads He faulted the ranking, saying that the country’s recession 17.6% inflation rate has shrunk the size of the economy. Adamolekun said this, yesterday, while delivering a convocation lecture entitled: The Idea of Nigeria: Two Challenges – Unity in Diversity and Prosperity, at the Lead City University, Ibadan, Oyo. He said: ‘’Although the International Monetary Fund ranked Nigeria’s economy the biggest in Africa by October 2016 – measured by Gross Domestic Product, GDP, $415.08 billion and $493.83 billion in 2015 – the country is in recession with a 17.6% inflation rate and hunger across the length and breadth of the country. “More evidence of economic recession includes a sharp fall in government revenues due largely to the fall in the price of petroleum, the crash in the value of the naira (even without an official devaluation), unemployment rate of about 13.3% (in particular, youth unemployment) and underemployment rate of about 20%.” While he attributed the problem of unpaid salaries of workers in 27 of the country’s 36 states as factors responsible for recession, he lamented lack of  consensus on the package of measures to adopt in revamping the nation’s economy. He said: ‘’Given Nigeria’s long delay in embracing economic diversification and its salience for sustainable good economic performance, I strongly agree with the suggestion that the government urgently needs a diversification strategy or plan. ‘’According to Jerome, the diversification strategy should include emphasis on macroeconomic stability, an industrial policy (that would guide the resuscitation of manufacturing industry) and strong investment in both physical and social infrastructure. ‘’ Preparation of the economic diversification strategy can be completed within a few months since some sector strategies (road maps) have already been approved by the Federal Executive Council- for example, agriculture, mining, and oil and gas sectors.” Adamolekun, a former dean, Faculty of Administration of the Obafemi Awolowo University, Ile-Ife, however, urged the Federal Government to ensure effective implementation of economic diversification. Throwing his weight behind the decision of the Federal Government to obtain an external loan, he said: ‘’The National Assembly should base its decision on the government’s recent request for authorization of external loan in the amount of $29.96 billion (N9.12 trillion) on the extent to which the specific expenditures to be approved would contribute to economic diversification.’’