Senator Dino Melaye says the harsh economic realities occasioned by the COVID-19 pandemic would force “lazy” governors to explore other avenues of generating funds rather than depending on federal allocation.
Melaye, who represented Kogi West in the 8th Senate, disclosed this in a tweet on Wednesday.
He noted that the nation’s over-dependence on oil revenue and failure to diversify its economy was already catching up with it.
The senator lamented that the Excess Crude Account (ECA) was now less than $73 million and the worst recession in the nation’s history looming.
Recall that Accountant General of the Federation (AGF), Ahmed Idris told the Senate that the ECA had been depleted to $71.81 million as of March 2 from $325 million at the end of 2019. ECA inflows stood at $3.68 billion in 2016.
The International Monetary Fund (IMF) recently predicted Nigeria’s economy could shrink by 3.4 percent this year as a result of the COVID-19 pandemic. Failure to contain the pandemic, IMF predicted, could lead to an 8.8 percent shrink, the worst in Nigeria’s history.
“Nigeria’s economy is being threatened by the twin shocks of the COVID-19 pandemic and the associated sharp fall in international oil prices,” Kristalina Georgieva, Managing Director of the IMF, said in a statement.
According to the senator, the restructuring of the nation which has been deferred for so long was already happening “by default”.
“Excess Crude Account of the federal government now less than $73m. Lazy governors will have to get creative as restructuring is happening already by default. The worst recession in our history beckoning. How are we preparing? Senator Dino Melaye,” he wrote.
See tweet:
EXCESS CRUDE ACCOUNT OF THE FEDERAL GOVERNMENT NOW LESS THAN $73M. LAZY GOVERNORS WILL HAVE TO GET CREATIVE AS RESTRUCTURING IS HAPPENING ALREADY BY DEFAULT. THE WORST RECESSION IN OUR HISTORY BECKONING. HOW ARE WE PREPARING?
SENATOR DINO MELAYE
— Senator Dino Melaye. (SDM) (@dino_melaye) April 22, 2020