Economic Outlook: Ekiti, Osun, Ebonyi, Kogi And Plateau In A Very Bad Shape-Onigbinde

Seun Onigbinde, co-founder of BudgIT has revealed that hard days lie ahead for five states in Nigeria as the economy nosedived.

He said Ekiti, Osun, Ebonyi , Plateau and Kogi States will be the worst hit in the days ahead.

Featuring on the current affairs program, Sunday Politics On Channelstv, Onigbinde said with the current economic outlook and low income from the internally generated revenue, the days ahead will be very tough.

To buttress his point, Governor Kayode Fayemi of Ekiti has structured how to borrow N60biilion to complete his ongoing projects between now and 2022. He has also said he won’t be able to pay the N30k national minimum wage for now.

Ekiti is said to be number 31 as far as the Federal allocation is concerned. 

In Kaduna, Governor Nazir el-Rufai has the Nigerian Labour Congress, NLC , to contend with because of the sack of 20,000 staff across the state. The governor said he has to take the hard decision in the face of dwindling federal allocation. 

The Nigerian National Petroleum Corporation, NNPC, has hinted that it won’t be able to meet up its financial obligation for the month of May and June. This is causing restiveness among the governors, especially those with lean financial resources.

It remains to be seen how funds from the FIRS, Customs, NPA and other revenue generation agencies will be enough to share for the states to meet its obligations ( both recurrent & capital) for the aforementioned months.

It will be recalled that Nigerian economy slides into recession again in 2020 due to adverse effects of COVID-19 pandemic and managed a weak recovery in the last quarter of 2020. And with the 0.1% sluggish growth, it’s yet to recover fully.

Analysts say Nigerians May have to tighten their belt to face the challenge of downturn in our economic activity in the days ahead.

Already with unemployment stands at 33.3% and inflation at 17%, there’s need to reflate the economy urgently before the real economic crunch and insecurity across the country.

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