The KOWA party have released a statement urging the Federal government to face the economic issues with the same fervency that they have so far used in the anti-corruption war.
They feel the Nigerian Economy is declining at an alarming rate and would love to see something done about it.
Their statement reads: Today, as the Nigerian Labor Congress in its different factions continue to demand the reduction of the current PMS Price hike, we have decided to focus on another important part of the issues that affect Nigerians, our daily living and the ripple effects that comes with the decisions that policy makers make – the state of the economy.
Our Economic Reality today is not what we want it to be neither is it what it used to be. Quarter after Quarter, the debate about whether we are already in recession continue to hold sway amidst economists, businesses continue to shed jobs, unemployment rates continue to increase, foreign companies that formerly found our country suitable for business continue to leave our shores for reasons owed to the business environment and enterprise as inflation figures continue to rise.
The figures released by major companies listed on the Nigerian Stock Exchange about First Quarter reports (Q1) 2016 shows no sign or indication of an healthy economy. Combined Profits for about 44 major firms are down 11.1% and so also is income tax expense for the firms down by 12.97%.
Profits reported by majority of this firms are lower than they reported last year. It is evident also that citizens’ earning power have reduced and following suit is consumer spending.
The questions and varying answers about a recession in our economy might currently be an academic debate, what is not an academic debate however is that our economy is currently not healthy and from all indications especially with respect to the GDP which is a broad measurement of a nation’s overall economic activity, we are running a Sick Economy that is currently showing no signs of recovery.
The Federal Government must therefore act urgently as it clearly appears that we are almost close to a recession in the economy. The Federal Government’s promise to inject N350bn into the economy to boost the economy is a step in the right direction and this must begin almost immediately for the benefit of Nigerians as a whole.
A clear economic policy direction coupled with a firm commitment to encourage enterprise as was done with Mr President’s essay on the measures been taken towards the fight against corruption is also expected from Mr President himself on the economy. The business environment for honest entrepreneurs in our country continues to degrade by the day in an unfair manner where the most vulnerable enterprises are choked by taxes of different kinds while some other giants continue to get tax holidays.
The duo of a declining economic environment which ensures that even accrued taxes owed to the government by business giants continues to nosedive and the tax incentives and holidays that these same business giants continue to get does not cohere with the government’s resolve to finance the 2016 budget from majorly non-oil revenue.
We implore the Federal Government and especially Mr President to channel as much energy as is been channeled towards the anti-corruption fight towards the economy which has more immediate benefits to the average Nigerian than the latter.
In these trying times as a nation, we believe that we as a country have what it takes to drive through the storm.
May God Bless the Federal Republic of Nigeria
Signed
Jude ‘Feranmi (JFK)
National Youth Leader,
KOWA PARTY,
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