Atiku provides solution to recession, urges Buhari to swallow pride, seek help

 

Former Vice President Atiku Abubakar asked the President to swallow his pride and seek help in managing the economy.

Atiku gave the advice in a statement titled, “We Must Exit This Recession with Precision,” in Abuja, on Sunday.

He said this situation could have been avoided had the Buhari regime heeded patriotic calls by well-meaning Nigerians for a cut in the cost of governance, increased savings and avoidance of profligate borrowings.

Atiku said, “I urge the administration of President Muhammadu Buhari, to swallow its pride, and accept its limitations, so that they can open their minds to ideas, without caring who the messenger is. For as Deng Xiaoping said, ‘It doesn’t matter whether the cat is black or white, so long as it catches mice.”

He explained that while it was true that the COVID19 pandemic had exacerbated an already bad situation, the current recession could have been avoided if a disciplined and prudent management of our economy was in place.

Atiku maintained that what was needed were practical steps towards bringing about lasting solutions.

He suggested that, “For a start, the proposed 2021 budget presented to the National Assembly on Tuesday, October 8, 2020, is no longer tenable.

“Nigeria neither has the resources, nor the need to implement such a luxury heavy budget. The nation is broke, but not broken. However, if we continue to spend lavishly, even when we do not earn commensurately, we would go from being a broke nation, to being a broken nation.

“As a matter of importance and urgency, every non-essential line item in the proposed 2021 budget must be expunged. For the avoidance of doubt, this ought to include estacodes, non-emergency travel, feeding, welfare packages, overseas training, new vehicle purchases, office upgrades, non-salary allowances, etc.

“Until our economic prospects improve, Nigeria ought to exclusively focus on making budgetary proposals for essential items, which include reasonable wages and salaries, infrastructural projects, and social services (citizenry’s health, and other human development investments).

The former Vice President also suggested better investment in human development and an increase in the purchasing power of the most vulnerable of our population.

He also said, “We must invest in those most likely to be impacted by the effects of the recession, the poorest of the poor. As well as stimulating the economy, this also ensures that they do not slip further into extreme poverty.

For example, a stimulus package, in the form of monthly cash transfers of N5,000 to be made to every bank account holder, verified by a Bank Verification Number, whose combined total deposit in the year 2019 was lower than the annual minimum wage.

“Now, how will this be funded? By more profligate borrowing? No. I propose a luxury tax on goods and services that are exclusively accessible only to the super-wealthy. A tax on the ultra-wealthy to protect the extremely poor.”

He also proposed a 15 per cent tax on all Business and First Class tickets sold to and from Nigeria, luxury car imports and sales, on all private jet imports and service charges, on all jewellery imports and sales, on all designer products imported, produced or sold in Nigeria, and on all other luxury goods either manufactured or imported into Nigeria, with the exception of goods made for export.