Home News Recession, borrowings: Nigeria heading into black future – Finance expert

Recession, borrowings: Nigeria heading into black future – Finance expert

by Dan Maduagwu Umuahia
1 minutes read

A chartered tax expert and traditional ruler of Amangwo-Olokoro, Umuahia South L.G.A., Abia State, Eze Christian Onyebule has warned that Nigeria and her citizens might be plunged into a bleak future, if the current recession entered into by the country is mismanaged.

Eze Christian gave the warning, Friday, in his palace while reacting to the current hardship being experienced by Nigerians, especially the rural dwellers.

The royal father posited that recession cannot be blamed on any government and recalled that the devastating effect of the Covid-19 pandemic, as well as its attendant lockdown effects have led to the current state of economy of the country.

He expressed hope that the economy will pick up again if those in political power are committed to rescuing the economy

Eze Onyebule posited that Nigeria, whose major source of income is oil which at the moment is not yielding enough income, may also encounter a deficit along the line, especially if the government of the day is unable to get things right.

“Borrowing is not bad for investors, but you cannot classify government anywhere in the world as good investors. So, when they borrow, they may not utilize the loans as effectively as the people in the private sector.

“You are in a recession. You are borrowing because the income has fallen, then you are creating a problem. You are going to repay with the income you earn in future. This may lead to mortgaging the future of the country if managers of the economy as well as those in government mismanage or misappropriate such loans, hence the need for the country to prudently manage whatever loans they take at this critical time”.

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