Nigerians may need to brace themselves and get prepared for harder times following a very gloomy picture of the nation’s economy painted by the Governor of Central Bank of Nigeria, CBN, Mr. Godwin Emefiele, during a closed-door meeting with senators yesterday, 19 July.
Investigations by Vanguard revealed that the CBN governor told the Senators that it was alarming that the country was facing both economic stagnation and inflation at the same time, explaining that normally, both were not supposed to happen simultaneously. He expressed worry over the fact that the nation’s economy was gloomy, stagnant and worsening as a result, a source said.
The source also disclosed that Emefiele said the state of the economy was adversely affecting all, with nearly all activities crippled, adding that indices that would have made the economy grow were not in place at the moment.
It was also said that the Governor made reference to the continued bombing of oil pipelines by the Niger Delta Avengers as one of the factors dragging down the economy in addition to the over 70 per cent decline in oil prices from about S116 per barrel in June 2014 to about $30 per barrel earlier in the year.
The news outfit further learnt that Mr. Godwin Emefiele told the lawmakers that if the current condition in the nation does not end soon, the Federal Government may end up not being able to pay salaries of its workers with effect from October this year. He also said Nigerians would be forced to pay general taxes which would not exclude petroleum products.
In the meeting with Senators which lasted about one hour, the CBN Governor was said to have presented a comprehensive account of the economy in the last one year which, according to him, had been characterized by external shocks, including sharp decline in commodity prices, geo-political tensions along important global trading routes and tightening monetary policy in the United States.