Nigeria must prepare to respond to the economic impact of the war between Russia and Ukraine

The ongoing war between Russia and Ukraine has worsened the economic situation globally and Nigeria and other countries need to prepare as things may get worse. This was stated by the Vice President of Nigeria, Yemi Osin Bajoon Friday, in Ebonyi state. Osinbajo said Nigeria’s economy is reeling from the fallout from the COVID-19 pandemic and the Russian-Ukrainian war. While calling for synergy between all levels of government to meet the challenges, he warned Nigerians to prepare for what could be a more difficult economic situation. “The need for synergy between all levels of government at this critical time, especially as we continue to face the challenges of the onslaught of the COVID-19 pandemic, now compounded by the ongoing war between Russia and Ukraine, it has already led to price and supply shocks, especially in food. “We must prepare to collectively respond to the inevitable economic challenge that will occur and some that are already occurring,” he said. Nigeria imports about 50 percent of its wheat from Russia and the Ukraine. The Russian invasion of Ukraine has also caused increases in the prices of various commodities, including oil. Although Nigeria is a net exporter of crude oil, the lack of local refining means that it imports most of its oil products, such as gasoline and kerosene, whose prices have increased. Nigerian Vice President Yemi Osinbajo with Ebonyi State Governor David Umahi in Ebonyi State [PHOTO CREDIT: Professor Yemi Osinbajo] Poor governance in resource-rich countries Osinbajo also blamed the lack of development in countries with huge natural resources, such as Nigeria, on poor governance and weak institutional structures. He also identified the lack of transparency and accountability as other factors militating against national development. Spoke at the 21st Meeting of the National Council on Development Plan (NCDP) He said that the theme of the meeting, “Good Governance and Institutional Capacity: Pathways to Sustainable National Development” is appropriate as there is a need to build the capacity of Nigerian institutions to properly implement their development plans. “The strategic objective of the national development plan includes establishing a solid foundation for a diversified economy, investing in infrastructure, improving governance and eradicating insecurity; all of which would contribute to achieving our national development aspirations. “The content of the plan is as important as the process in which it was developed. “But the implementation of the plan is the crux of the matter and this speaks to the relevance to the topic of the meeting… “The question I’m sure some of us are asking is why countries with enormous natural and human resources are still slow to develop and have a higher rate of poverty than less well-endowed societies or countries with no resources like South Korea and Singapore. “Why do they still perform better than the ingenious country in the world? I think that most of the surveys carried out show that there is a lack of good governance and weak institutional capacity that largely explains the difference. “The functioning of public institutions is, of course, an approach determined by institutional capacity. But this is not just about having a merely educated and well-motivated workforce. But a system that can enforce transparency and accountability. You must have a system that can deliver transparency and accountability. “So even when a country has all the natural resources in every local government area and even a well-educated workforce, a country can still fail and social services can still be poorly provided and extreme poverty can still prevail,” he said. . ALSO READ: Asked about poor economic performance, Buhari says ‘back on the farm’ The vice president commended the council, the federal ministry of finance, budget and national planning, federal and state MDAs, and all stakeholders and partners from the private sector and civil society for the excellent work done in articulating a national plan for development 2021-2025. . “The development planning council remains a very important platform for setting the tone for national development. Without a doubt, it provides an opportunity for the federal and state governments to deepen active collaboration for the well-being of our people,” he said. Umahi opposes VAT by states At the event, Ebonyi State Governor David Umahi opposed the charging of Value Added Tax (VAT) by states, calling it an invitation to anarchy. He noted that the National Assembly should be encouraged to investigate the matter and work to include VAT in the exclusive list of the Nigerian constitution, to be handled solely by the federal government. Mr. Umahi’s comments follow controversy sparked by a court ruling that authorized states to collect VAT. Although the federal government is challenging the ruling in court, states like Rivers have already asked businesses in their state to pay their VAT to the state government and not the federal government. advertisements Also at the event, Finance Minister Zainab Ahmed urged states to ensure their medium-term plans align with the country’s aspirations. He also advised them to partner with the organized private sector to carry out their development plans. Subsequently, the vice president commissioned some projects carried out by the state government. They include the dualization of a section of the Abakaliki/Afikpo Highway, the Sam Egwu Flyover Ezzamgbo, the new Government House Chapel, and the Muhammadu Buhari Tunnel of Light. Read More Related News Here Let here it in the comment below if you do have an opinion on this; Nigeria must prepare to respond to the economic impact of the war between Russia and Ukraine