Over dependence on oil the reason Nigeria is in recession – Lai Mohammed
Labels: National News
Minister of Information and Culture, Lai Mohammed, has blamed the current economic recession on the country’s over-dependence on oil.
Mohammed explained that the downturn in global price of oil exposed the country’s faulty economic policy, with oil accounting for over 60 per cent of the nation’s Gross Domestic Product, GDP.
“Crude oil accounts for between eight and 12 per cent of our GDP and another 53 per cent of the GDP which we call non-oil, unfortunately also depend on the same oil.
“When the price of oil now crashes in the international market, definitely you are bound to have this kind of shock in the economy.”
Mohammed noted that the nation’s economic growth between 2010 and 2014, was only fueled by consumption, reason it short-lived.
“The growth was not fueled by production or fueled by investment, and that explains why it was short-lived,” he said.