By Stephen Gbadamosi
This is topic that the Speaker of the Ekiti State House of Assembly, Right Honourable (Pastor) Kola Oluwawole, recently spoke to at an
event organized by the Students’ Union Government (SUG) of the College of Education, Ikere-Ekiti, recently. One thinks it is pertinent to shed light on some of the key issues raised over this challenging economic development.
What is recession? Recession can be described as the breakdown or relapse of a system. Thus, economic recession is a situation where the economy of a nation is comatose. The symptoms are widespread hunger, weak currency, and high cost of living, among other negative indices.
The current economic downturn, as has been argued by many, is about the worst recession witnessed by the country in recent decades. Many factors have been blamed for the sorry state of the economy, chief among which is the crash of the price of crude oil in the international market. It is noteworthy that for, perhaps, too long a time, oil has been the fulcrum upon which the nation’s economy is hinged. In other instances, the economic policies of the current administration at the national level have been blamed for aiding the downturn. For a largely consuming and non-producing economy like ours, the free fall of the naira against the dollar and other major currencies would need drastic measures to be arrested. Businesses have suffered greatly. Or what do you think of an economy that imports $8 million worth of toothpicks monthly? And that is besides other mundane consumables that we ought to be producing ourselves but upon which we lavish scarce foreign exchange to import.
Many Nigerians have also questioned the rationale behind prohibition of importation of certain food items when the nation has yet to evolve a visible or successful self-sufficiency plan for such commodities. As partners in the progress of governance, the legislature, like other stakeholders, has a very crucial role in the effort to bail the nation (and the states) out of this economic quagmire.
In the first instance, the legislature plays a pivotal role in the design of both the nation and the states’ annual economic roadmaps, the Appropriation Bills. It is the duty of the legislature to scrutinize the budget as prepared by the executive, fish out and correct errors of omission and commission and come up with a document expected to enhance the economic well-being of the people in the financial year.
In some cases, in the course of the financial year, it may be necessary to review the budget in tandem with prevailing economic indices and any unforeseen development that may have arisen. The parliament plays an important role in the process of such review. An example is that which the Ekiti State House of Assembly passed into law some weeks ago.
Besides scrutiny, passage and revision of the budget, key actions of the executive in the cause to steer the ship of state out of the murky waters of recession also need the legislature’s sanction. You will recall that the Federal Government has been proposing the sale of some national assets to generate funds to finance national budget’s deficit to address the recession. This plan has elicited heated debate among discerning Nigerians and stakeholders. It is the role of the National Assembly to galvanise the cause and the dissenting views therein to an end that would help mitigate the effect of the recession on hapless Nigerians. It is the duty of the legislature to ensure that government does not take a decision that can jeopardize the future of the nation in the name of fighting recession.
Equally, the lawmakers have the onerous responsibility of helping government find alternative sources of revenue and blockage of loopholes through which resources are haemorrhaged.
In Ekiti here, we had envisaged the economic crisis a long time ago. You will recall that His Excellency, Governor Peter Ayodele Fayose, had been calling the attention of the Federal Government to the imminent economic crunch long before it finally hit us in the face. As a House of Assembly, we in the Ekiti State legislature have come up with laws that will widen the revenue base of the state and curb activities of unscrupulous elements who were pilfering government revenues. We have passed the Forestry Bill. We passed the Electricity Regulation Bill. We passed the Health Fund Bill and many more. All these are aimed at making life more meaningful for the generality of our people while the economic downturn lasts.
CHALLENGES
well, it is those variables that have always been there that the legislature is having to contend with. The principle of separation of powers has always limited the extent to which the legislature can go in making certain decisions realistic in times like this. We are, however, lucky in Ekiti State, as we have a chief executive that listens to wise counsel.
You may also note that the dwindling finances also affect the legislature. We operate under tight budgetary provision, a development that has limited most things that can be done in oversight areas. And I must tell you that this is an area where the interest of the electorate is served very well. Oversight functions of the lawmakers are basically about the welfare of the electorate.
SILVER LINING
In the face of the grim reality, we must, however, be hopeful. With every Nigerian speaking out, cross-fertilizing ideas on how to get out of the economic quagmire, it is hoped that policy makers can sift the whole gamut and come up with a lasting solution.
Part of the ways out of the challenges is diversification of the economy. Nigeria has depended for too long on revenue from oil. It is high time the country returned to agriculture which had been the mainstay of the economy from inception. The Federal Government has also been advised to devalue the naira. This is key to any monetary policy that can bail out the country at this time.
Experts have also called for the development of other sectors like tourism and investment in other mineral resources aside oil. There have also been calls to the Federal Government to rejig the nation’s monetary policy as stated earlier. Also, it needs to be understood that any import-dependent nation will continually face economic challenges. Efforts must be made towards massive industrialization. As lawmakers, we will continue to produce legislations that will assist government to navigate through the turbulent times. But then, everyone of us; students, workers, unions and all other stakeholders, also have to play our roles, if we must get over this problem as quickly as possible.
Gbadamosi is Special Assistant (Media) to the Speaker of the Ekiti State House of Assembly