Recession is good for the development and the expansion of the country’s economy, the Institute of Strategic Management of Nigeria has said.
The institute said this at a press conference in Abuja on Wednesday to announce its 2016 Conference and Annual General Meeting to be presided over by Vice-President Yemi Osinbajo.
Describing recession as a natural consequence, the 1st Vice-President, ISMN, Mr. Gbenga Oluniyi, said recession was good and necessary to make the country to exploit other capacities inherent in the economy.
Oluniyi said, “What is happening now is a natural consequence where you just have to find a way. The current government technically admitted that we are in a recession. To be in a recession is not completely a bad thing; it drives you to think out of the box.
“The institute is happy with what is happening now because we really have not been thinking. We have been lazy. The Raw Materials Research and Development Council had carried out studies that in every state of Nigeria, you can find minerals that can be explored and exploited on commercial basis.
“This is not being done by the government. We are beginning to see the government look inward now. Absolute reliance on one product to sustain the Federal Government, the 36 states and 774 Local Government Areas is not sustainable.
“One, we are not in control of the price of crude oil. Two, we are not adding value to the crude. So, crude oil has become more or less a curse rather than a blessing. So, we believe that this is a temporary situation and the states are beginning to rise up to the challenge.”
He added, “Sincerely speaking, we have about 27 states out of the 36 states of the federation in a very difficult situation. The question we should ask ourselves is what have the remaining nine states done differently to keep above troubled waters.
“Ogun State is not an oil producing state. The state decided to leverage its proximity to Lagos and today, the fastest growing industrialisation in Nigeria is taking place in Ogun State. You don’t hear of labour unrest in the state because salaries are being paid as at and when due.
“Ordinarily, from revenue allocation, Ogun State is one of the states that should be complaining. Other states can also begin to look inwards. Whatever comes from the centre should actually be a bonus to the states.”
Other officials of the institute that spoke at the conference were the Chairman of the Conference Local Organising Committee/FCT Chapter, Mr. Samuel Olaniyan; and a former Registrar, Mr. Yemi Mapederum.