Nigeria's economy is in bad shape, FG may not be able to pay salaries soon- CBN
Wed Jul 20, 2016 07:26:am Finance
3.8K By Buchi Obichie
At a closed-door session with Senators on Tuesday, the Governor of the Central Bank of Nigeria, CBN, Mr. Godwin Emefiele, painted a gloomy picture of the nation's economy.
The CBN Governor reportedly told the Senators that it was frightening that the nation was experiencing economic stagnation and inflation at the same time.
According to Emefiele, ordinarily, both were not supposed to occur simultaneously.
A source said he expressed concern that as a result of this, the economy was gloomy, stagnant and worsening.
According to the source, the CBN Chief, who noted that the economy was biting on all, with almost all activities crippled, said indices that would have made the economy grow were not in place at the moment.
As one of the factors pulling down the economy, Emefiele was said to have made reference to the renewed bombing of oil pipelines by militant group, Niger Delta Avengers.
The CBN Governor was said to have Iinked these occurrences, especially with respect to the over 70 per cent decline in oil prices from about $116 per barrel in June 2014 to about $30 per barrel earlier in the year.
FG may not be able to pay workers' salaries
Going further, the CBN Governor reportedly informed the lawmakers with effect from October this year, the Federal Government might not be able to pay salaries of its workers, if the present situation persisted. He also disclosed that Nigerians would be forced to pay general taxes, which would not exclude petroleum products.
The CBN Governor reportedly told the Senators that it was frightening that the nation was experiencing economic stagnation and inflation at the same time.
According to Emefiele, ordinarily, both were not supposed to occur simultaneously.
A source said he expressed concern that as a result of this, the economy was gloomy, stagnant and worsening.
According to the source, the CBN Chief, who noted that the economy was biting on all, with almost all activities crippled, said indices that would have made the economy grow were not in place at the moment.
As one of the factors pulling down the economy, Emefiele was said to have made reference to the renewed bombing of oil pipelines by militant group, Niger Delta Avengers.
The CBN Governor was said to have Iinked these occurrences, especially with respect to the over 70 per cent decline in oil prices from about $116 per barrel in June 2014 to about $30 per barrel earlier in the year.
FG may not be able to pay workers' salaries
Going further, the CBN Governor reportedly informed the lawmakers with effect from October this year, the Federal Government might not be able to pay salaries of its workers, if the present situation persisted. He also disclosed that Nigerians would be forced to pay general taxes, which would not exclude petroleum products.
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