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updated 10:20 AM UTC, Dec 13, 2023

Agbakoba, SAN: Nigeria In Recession, Going Into Depression

LAGOS, Federal Republic of Nigeria. Former president, Nigerian Bar Association (NBA), Mr Olisa Agbakoba, has declared that Nigeria, under President Muhammadu Buhari-led regime, is in recession already, expressing worries why the government refused to utilise the money so far recovered in its anti-corruption war, including the over N3 trillion through Treasury Single Account (TSA).

Agbakoba, who is a leading pro-democracy activist, said this on Monday, while addressing newsmen at his Ikoyi residence, on the theme: “Moving the economy forward: Talking points,” warning that if urgent steps were not taken, the country would find itself in a depression, where growth becomes absolutely nil.

“Naturally, the country has fallen in deep recession and if this continues, then we are likely to see depression, where growth becomes absolutely negative,” Agbakoba warned.

The leading legal practitioner, who noted that not a few Nigerians applauded the government’s anti-corruption programme in which it was collecting monies, however, asserted that the government’s “anti-corruption saving money programme” was being used in the wrong way.

“Every Nigerian, all Nigerians would obviously applaud the government’s anti-corruption programme in which it is collecting monies, the TSA in which it has collected about N3 trillion, but for them not to use the money is what surprises me.

“So, the anti-corruption saving money programme is in my view used in the wrong way. So, you save money by saying let’s plug all the loopholes, but it looks negative.

Agbakoba, who said all was not lost as the government appeared to know and understand the country’s economic terrain, enjoined it (government) to begin process of reinflating the economy by getting Financial Services Sector (FSS) right, creating jobs while stimulating small businesses, reviewing Public/Private Sector Economy, among others.

 

According to the former NBA president, getting the Financial Services Sector (FSS) right would involve limiting the role of the Central Bank of Nigeria (CBN) and creating a Financial Services Agency (FSA), saying the CBN was currently overburdened and should focus more on lending, interest rate and exchange.

On job creation and stimulating small businesses,  Agbakoba contended that if the government was able to get the FSS right under the CBN, jobs would be available, pointing out that “jobs can only be created when we have a vibrant manufacturing and real sector.

“Currently, the manufacturing sector is in a comatose state with the Manufacturers Association of Nigeria constantly complaining of the need to reduce the cost of doing business.

“Small businesses are hindered because of absence of capital, they cannot easily access loans from banks. Interest rates are high and banks are shy to lend because of the problem of bad debts, exacerbated by inefficient regulatory environment,” he said.

Speaking further, the leading human rights activist called on the government to review the country’s Public/Private Economy and bring about a strong Public/Private Sector framework, noting that while Nigeria’s state owned public enterprises were often ineffective, China’s model appeared very effective.

This was just as he declared that the privatisation escape route Nigeria was often eager to employ had not been successful, pointing out that so far none of the privatised entities in Nigeria could serve as a model.

According to him, “public sector economy is not properly defined in Nigeria. Whilst Nigeria’s state owned Public Enterprises are often ineffective, China’s Model appears very effective.

“The privatisation escape route that Nigeria is often eager to employ has not been successful. In fact, none of the privatised entities in Nigeria could serve as a model.

“It is urgent, therefore, that Nigeria reviews her public/private economy. Government must control the overarching sectors of the economy. There is need for a strong Public/Private Sector Framework.”

Following allegations of corruption levelled against two senior lawyers and judges by the Economic and Financial Crimes Commission (EFCC), a former Nigerian  Bar Association (NBA) president, Dr Olisa Agbakoba, has attributed poor funding of the judiciary to the menace.

The National Judicial Council (NJC) member said many judges were in financial difficulties and cannot meet most of their needs.

Agbokoba said this in Lagos, at a briefing on“moving the economy forward,” in which he recommended the unbundling of the Central Bank of Nigeria (CBN).

Agbakoba said it would be difficult to blame a poorly paid judge, whose mother had a terminal illness for asking for help from friends.

“You don’t expect that a judge whose mother is dying would be thinking about Code of Conduct. I don’t think so,” Agbakoba said.

The SAN said due to lack of proper funding, even chief judges also begged governors for funds, adding that such problems would persist, so long the judiciary was underfunded.

He recalled the case of a Supreme Court  justice, who retired and disclosed in her valedictory speech that she had no home because there was no money to build a house of her own.

Commenting on the charge filed against a senior advocate (SAN), Dr Joseph Nwobike by the EFCC, Agbakoba said it was important to examine the underlying causes of why a judge would ask a lawyer or a friend for financial assistance.

According to Agbakoba, poor funding of the judiciary manifested in chief judges going to governors to seek financial assistance.

Agbaboka also added  that the anti-corruption fight was yielding results, but the CBN needed to be unbundled if the economy was to be stimulated.

Credit: Tribune (Nigeria)

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