Friday, July 19, 2024 -Reno Omokri has kicked against Dele Momodu's position that Nigeria's economy is falling apart.
Dele had released an open letter to
President Tinubu on Thursday, July 18 in which he raised alarm over the state
of the Nation with particular reference to the falling economy.
In a post shared on X, Reno argued that the
economy is not collapsing, He went on to list some things to buttress his point
that the Nigerian economy is stable.
He wrote;
Response To My Beloved Senior, Dele Momodu:
Nigeria's Economy Is Not Collapsing. Far From It!
Dear Egbon
Dele Momodu,
I read your
open letter to President Bola Tinubu, in which you said, "Our economy has
virtually collapsed", among other things. Respectfully, the facts do not
support your assertions, and in your open letter, you did not provide any
facts. Only opinions. So, please let me present some facts that contradict your
opinions.
Firstly,
only yesterday, the International Monetary Fund projected that due to the
reforms being undertaken by the current administration, Nigeria will have a
3.1% GDP growth rate in 2024. This is one of the best projections for an
African country in 2024, and does not signal an economy that has ‘virtually
collapsed.’
Secondly,
Nigeria had a record high of ₦6.52 trillion trade surplus in the first quarter
of 2024. This has never happened before. We routinely had trade deficits in the
past. This means that because of the monetary reforms by the current
government, Nigeria is now exporting significantly more than it is importing,
and the growth is largely in the non-oil sector.
For example,
Nigeria is now a net exporter of clement to Europe and a growing exporter of
refined petroleum products to Europe and West African states. Ghana, a fellow
petroleum exporting country, is largely dependent on LPG from Nigeria. This
projects growth, not collapse.
Thirdly, in
terms of revenue, all Nigerian states, bar none, have received significantly
higher federal allocations since May 29, 2023, than they were receiving under
the Buhari regime. Each state now gets at least 45% more federal allocation,
with Nasarawa getting almost 100% more and Anambra getting 70% more, whereas
their wage bill has not increased.
The above
projects economic strength rather than collapse.
Fourthly,
according to Financial Derivatives (FDC), with a Return on Investment of
22.90%, Nigeria's Stock Exchange is now the most profitable capital market on
Earth, bar none. Please note that. Bar none. The National Bureau of Statistics
has also corroborated this. For the first time in our history, the all-share
index (ASI) of the Nigerian Stock Exchange crossed the 100,000 mark in 2024.
I would not
categorise such growth as collapse, and I am sure investors who smiled to the
bank would not either.
Fifthly,
capital inflow into Nigeria increased by 66.27% this year. This is probably why
Fitch and S&P Global Ratings upgraded Nigeria's economy to a Stable B, and
why foreign inflows into the capital market jumped fivefold in the first
quarter of 2024 to N93.37 billion from N18.12 billion in the same period last
year.
Sixthly,
despite clearing the backlog of foreign exchange debts owed to foreign airlines
and other foreign investors by the Central Bank of Nigeria, Nigeria's foreign
reserve hit a year-to-date high of an estimated $34 billion this year. How can
a nation with such a healthy reserve be said to be on the verge of economic
collapse?
Finally, the Student Loan
promised is now a reality and is being disbursed. That means Nigeria is about
to witness a dramatic increase in its human resources, as more youths will have
access to education.
Therefore, bearing the above in mind, is it not possible, egbon Dele, that you may have focused too much on assumption and too little on facts to come to your conclusion that Nigeria's economy is collapsing?'
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