{"id":14424,"date":"2017-05-18T22:27:10","date_gmt":"2017-05-18T22:27:10","guid":{"rendered":"http:\/\/newsroom247.com.ng\/?p=14424"},"modified":"2017-05-18T22:27:10","modified_gmt":"2017-05-18T22:27:10","slug":"soludo-blames-nigerias-economic-crisis-on-bad-policy-of-borrowing-and-tsa","status":"publish","type":"post","link":"http:\/\/newsroom247.com.ng\/?p=14424","title":{"rendered":"SOLUDO BLAMES NIGERIA&#8217;S ECONOMIC CRISIS ON &#8220;BAD POLICY OF BORROWING&#8221; AND TSA"},"content":{"rendered":"<p><strong>Chukwuma Soludo, a former governor of Central Bank of Nigeria (CBN), says the root of the economic crisis currently rocking the country can be traced to the \u201cbad policy of borrowing\u201d when the country was in a period of boom.<\/strong><\/p>\n<p>He also blamed the the treasury single account (TSA), which according to him,\u00a0channelled all public sector funds to the CBN and stuffed the economy further instead of oiling it with liquidity.<\/p>\n<p>Soludo said this on Thursday while speaking at the 2017 international conference organised by the department of business administration of Nnamdi Azikiwe University, Awka, Anambra state.<\/p>\n<p><code><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- www.deltanewsroom.com --><br \/>\n<ins class=\"adsbygoogle\" style=\"display: block;\" data-ad-client=\"ca-pub-2163942495525027\" data-ad-slot=\"1411897411\" data-ad-format=\"auto\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/code><\/p>\n<p>He said managing and exiting a recessed economy was not a rocket science, noting that Nigeria could overcome the current economic setback faster if the government put in place appropriate policies.<\/p>\n<p>\u201cPart of the problem Nigeria is having in its quest to get out of recession is poor policy,\u201d he said.<\/p>\n<p>\u201cHuge spending by government was one of the ways of solving the economic problem, but two wrong steps by government ruined that.<\/p>\n<p>\u201cThey brought in the treasury single account (TSA) and channelled\u00a0funds into one account that did not allow spending\u2026 they also fixed the price of foreign exchange. These are things you do not do.\u201d<\/p>\n<p>He said the recession which became obvious one year into the life of the present administration would not have degenerated but for the inability of policy makers to rise to the challenge.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.alternativeadvert.com\/show.php?z=30&amp;pl=13194&amp;ad_type=59&amp;rl=180\" width=\"300\" height=\"250\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>Soludo added that part of the problem was because Nigeria failed to save funds at a time when there was unprecedented boom in oil prices.<\/p>\n<p>\u201cPoor ideas transcended over superior ideas, and we went into recession which was slightly avoidable, that is why academics must be alive to their responsibility of nudging us to reality,\u201d Soludo\u00a0said.<\/p>\n<p>\u201cIf you borrow at a time of boom, what will you do in a\u00a0time of lack? Even my grandmother in the village knows this.<\/p>\n<p>\u201cAt the same time when we had boom, we had unprecedented unemployment.<\/p>\n<p>\u201cThe problem with Nigeria\u2019s successive policy makers is that once oil goes up, we take it that it will remain so, and we continue to spend.<\/p>\n<p>\u201cBut once there is a shock and oil goes down, we just think it is temporary and we start borrowing.<\/p>\n<p>\u201cNigeria can be fixed, and what it needs to fix Nigeria is not rocket science, but we do not have the will to fix her.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2017\/05\/budget.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-14425\" src=\"http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2017\/05\/budget-212x300.jpg\" alt=\"\" width=\"212\" height=\"300\" srcset=\"http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2017\/05\/budget-212x300.jpg 212w, http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2017\/05\/budget.jpg 679w\" sizes=\"auto, (max-width: 212px) 100vw, 212px\" \/><\/a><\/p>\n<p>Soludo called for the\u00a0diversification of the economy beyond oil to save it from shocks induced by vagaries of the international oil market.<\/p>\n<p>He also called for decentralisation from Abuja to help the states and local governments live beyond \u201crunning to the centre for their existence and sustainability\u201d.<\/p>\n<p>\u201cAnother way of tackling the challenges of the country is to unbundle Abuja, trim down the exclusive list,\u201d he said.<\/p>\n<p>\u201cWe do not have to be running to Abuja for everything, that was why I was surprised when some people canvassed that local governments should be going to Abuja to take their allocations directly.\u201d(www.thecable.ng)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chukwuma Soludo, a former governor of Central Bank of Nigeria (CBN), says the root of the economic crisis currently rocking the country can be traced to the \u201cbad policy of borrowing\u201d when the country was in a period of boom. He also blamed the the treasury single account (TSA), which according to him,\u00a0channelled all public [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":14425,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"ngg_post_thumbnail":0,"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[4],"tags":[3062],"class_list":["post-14424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-chukwuma-soludo"],"jetpack_featured_media_url":"http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2017\/05\/budget.jpg","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p4oswh-3KE","_links":{"self":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/14424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14424"}],"version-history":[{"count":1,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/14424\/revisions"}],"predecessor-version":[{"id":14426,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/14424\/revisions\/14426"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/media\/14425"}],"wp:attachment":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14424"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}