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LAGOS, Sept. 27 (Xinhua) -- There is need for Nigeria to borrow, spend less and earn more to get out of the current economic recession, former President
Olusegun Obasanjo said Tuesday.
"We are spending more than we are earning and we have not been able to save for the rainy day," Obasanjo said in the southwest city of Abeokuta.
He proffered a three-fold solution of borrowing, spending less and earning more to the economic challenges of the nation.
Obasanjo, who said funds were available outside the country, advised that Nigeria needed to approach its allies who could lend to the country on
reasonable terms.
He warned that no such nation would part with its funds without observing that Nigeria was taking practical steps to come out of its challenges.
The former president said Nigeria must encourage production to earn more and increase its revenue.
He said since the nation was not in control of oil, it should therefore diversify and concentrate on the things it could control.
Obasanjo, who stressed the need to develop agriculture, frowned at policies which tended to turn the nation into a dumping ground for other countries'
products.
The former president who backed the call for the sale of some national assets to raise money, described such act as natural.
He said port authorities and Nigeria National Petroleum Corporation (NNPC) were part of assets that Nigeria could partly sell to generate fund.
"I do not see why 49 percent of NNPC cannot be privatized and I think the problem is in the coinage selling of asset as if we want to throw out our
inheritance," he added.
Nigeria's economy had glided into recession few weeks ago, after a report by the National Bureau of Statistics showed that the nation's Gross Domestic
Product (GDP) contracted by by 2.06 percent in the second quarter of 2016.
According to the report, the decline has caused the Naira to get weaker while lower oil prices dragged the oil sector down.
The output shrunk by 0.36 in the first quarter.
During the quarter, nominal GDP was 2.73 percent higher at 23.48 million Naira at basic prices.
The oil-rich nation's economy suffered a set-back when the price of crude oil dropped, dipping the nation's revenue.
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