Contrary to the claims by the Action Congress of Nigeria, ACN that the nation’s economy was in danger, the Presidency has declared that the nation’s economy was stable, saying that the party’s claims lack substance.
A statement by the Senior Special Assistant to the President on Public Affairs, Dr Doyin Okupe, said the claims by the ACN lack substance and contrary to the verdicts of reputable international rating agencies.
According to the Presidency spokesman, “contrary to the claim by the ACN that the cost of producing a barrel of oil had ‘skyrocketed’ to $35 in 2012 from $4 in 2002, the actual cost of production stands at approximately $17 per barrel.
“The cost of oil production per barrel had never risen as high as the opposition claims. Even at the height of restiveness in the Niger Delta area and its consequent effect on the upstream oil sector, the per barrel cost of oil production in Nigeria never rose above $18. When compared with $50 and $70 per barrel spent on production of shale oil by the United States of America, the cost of producing oil in Nigeria which is $17 per barrel as well as a prevailing sale price of over $100 per barrel does not support the alarming claim of the opposition.
“The second leg upon which the ACN based its wrong assertions is similarly laden with deceptive undertones. For a fact, there are incidents of crude oil theft which had existed for several decades before this administration came on board. However, the truth is that this is currently being tackled through pro active steps by the government. The opposition is most probably aware of the fact that President Goodluck Jonathan recently secured the co-operation of the Prime Minister of the United Kingdom and French President on measures to prevent refineries in Europe from buying crude oil stolen from Nigeria.
“Similarly, the Jonathan administration has provided more and better surveillance boats for the Nigerian Navy to enhance patrol of our coastal waters. This has resulted in arrest of several vessels engaged in oil theft and these were well reported in the Nigerian print and electronic media.”
It added that the need to diversify the Nigeria’s economy and reduce over-dependence on oil had also been the driving force of the Federal Government’s massive investment in Agriculture in a manner unprecedented in the annals of Nigeria history.
He said: “In the year 2012 alone, the agricultural sector accounted for over 75 per cent of all non-oil export; the highest output in 25 years.”
While agreeing on the need to reduce the cost of governance at all tiers of government in Nigeria, the statement explained that President Jonathan had shown practical commitment through a reduction in recurrent expenditure from 74 per cent in 2011 to 71 per cent in 2012 and 68 per cent in the 2013 budget ,adding that the medium term target is to reach 60 per cent recurrent expenditure.
The statement said it was of utmost concern that a political party, individual or any organisation worth its salt would chose to ignore the positive rating of the Nigerian economy by reputable international rating agencies in the last one and a half years of the Jonathan administration, but rather conjure imaginary figures to make wild claims.
“One wonders if the ACN would have ignored the ratings by Fitch, Standard & Poor’s, Moody’s and Jp Morgan if those bodies had turned in a negative verdict on the Nigerian economy. The only conclusion one can draw from this is that the opposition has once again chosen the myopic and jaundiced path of public policy analysis rather than base its assessment on verifiable, objective indices. Unfortunately, a matter as sensitive as a nation’s economy ought not to be subjected to this fashion of blind politicking.”
The presidency While assuring Nigerians that the Federal Government remains committed to implementing sound economic policies and development of the nation’s infrastructure, urged politicians to exhibit statesmanship in addressing issues of critical nature, rather than seeking to score cheap points.
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