WHY NGOZI OKONJO-IWEALA IS CRYING ABOUT NIGERIA'S ECONOMY

Some of us do not care about the economics and its intricacies. It is simply too much of figures and terminologies, hence whenever it is turns up we just flip the pages.

The thing is that our daily living is economic based and running away from this only increases the price we will pay when caught unawares.

In order to get into the article, some people often pay attention, when the hear that the worth of the naira is falling against the dollar. Aha! May that would sink.
Now just this month naira has been having a freefall against other currencies (You find out how much).

The Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, on Friday last week warned Nigerians about an impending hardship that will occur accruing the sharp fall of oil prices; some Nigerians dismissed the warning as nothing new.

We know that most of the oil wealth has been squandered and shared through corruption but it is important for those who enjoy the largesse to beware.

Huge deficit has arisen because the 2015 Budget was drawn on the assumption that of oil on or above the price of 75$ as a baseline.
With the unrealistic baseline now,

There's a current proposal baseline of 73 $/barrel for the 2015 national budget with a production of 2.15million barrels/day. This baseline is expected to drop the inflow, hence fall in expenditure.

 1.) Federal allocation to both States and Local Government Areas will have less money to spend.

2.) Household incomes will also fall

3.) Salaries and wages will be delayed

Government proposed funding for Health, Education and other Utilities will be slashed with a backlash on Nigerians

The need to increase internally generated revenue might arise forcing government to tax areas that have been neglected before to finance their "you know".

These is a warning to these dependants to make swift necessary adjustments

*GENERAL RECESSION IS IMPENDING*

WAY OUT?

Promote Agro processing in crops like

Cocoa, oil palm, rice, cassava, cotton, maize, etc

Natural resources of mining and processing of iron ore, limestone, gemstones, and silicone

This is the time to diversify some crude products for sole export

Liquefied natural gas could also suffice

This is no time to send out Imams and Men-of-God to do prayers

Government must take action now instead of spending more money in the current political irrelevances.

Nigerians should understand where Ngozi Okonjo-Iweala is coming from.

This is the reality.