Former National Chairman of the All Progressives Congress, APC, Senator Adams Oshiomhole, yesterday, revealed that President Bola Tinubu's administration inherited an economy in which the nation's revenue was barely enough to service its debt burden, spending 96 per cent of its income.
Senator Oshiomhole also said there was no quick fix to the nation's economy because what he (Tinubu) inherited was a precarious situation. The lawmaker, who represents Edo North Senatorial District, spoke after a meeting with Vice President Kashim Shettima at the Presidential Villa.
Oshiomhole said: "The issue of the economy is work in progress. There is no quick fix. The Federal Government inherited a terrible economic situation. The government inherited an economy in which our total national revenue was barely enough to service our debt burden.
Spending 96 per cent, which is to say every N100, 000 Nigeria earns, N96,000 is used to repay debts and to service debt. So, you have only 4k left to pay all the salaries. So, nothing can be worse. "But they came determined that they will have to do business unusual; to arrest the drift; stabilize the economy and then begin to move forward. Some painful decisions are necessary.
"Already, the executive--the president and vice president--have shown courage in terms of the decisions they have taken, a radical movement away from one in which if you are well connected you could make billions without adding value to one in which if you want to make money, you have to work. We move away from a situation where the Central Bank of Nigeria, CBN, can favour you and you become a billionaire; of which they can pauperize you and your business collapses.
"Yes, it has created its challenges, but I don't know of any drug without side effect. Doctors will always tell you that every drug might cure your ailment but it will have a side effect. So, in taking it you have to do cost and benefit analysis.
"On the whole, I believe that the broad economic, specific macro economic policies that have been put in place so far, both in terms of monetary and fiscal policies, is the best way to start.
"Just recently, a former Minister of Finance distanced herself from the monetary policies of a CBN Governor and they were not talking. If the hand and the leg are not walking in harmony, then there is no way you can get to your destination. So, I think we are in a better situation now."
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In his appeal to Nigerians, the former governor of Edo State said: "My plea to Nigerians is, when I say I will bail you out, I will fix a complicated system that is malfunctioning, I believe everyone knows that the more terrible the situation is, the more time I will require to take the right decision."
