The Ogun State Commissioner for Commerce and Industry, Otunba Bimbo Ashiru Tuesday attributed the current recession in the country to maladministration, wrong policies, recklessness, and improper planning.
“Economic recession is caused by two broad variables internal (endogenous) and external (exogenous) factors, he said while delivering a keynote address at the 8th National Conference of School of Management Studies, Ilaro, Ogun state.
He pointed out that the former is usually as a result of conflict of ideas, misapplication of economic theory and regulatory negligence or policy inconsistency. The external causes of recession have to do with factors that are exogenous to the economy over which policy makers have little or no control. Factors like natural disaster, climate change, revolution and wars.
Ashiru noted that economic recession in Nigeria, can also be linked to three main factors, Legacy, policy, political and security factors.
The commissioner also proffered solutions to ending recession through reduction in tax rates on individuals, small and medium scale enterprise, and corporations by at least 20% so as increase disposable income, purchasing power and the ease of doing business in Nigeria especially encouraging foreign direct investment.
He said that diversification of the economy from a monopolized crude revenue into agricultural, manufacturing, and construction sectors that has the ability to stimulate aggregate demand will do the nation well in boosting her revenues.
He urge students to key into the change agenda of the Buhari led administration especially on its economic diversification agenda.
He culminated by charging all participants to contribute their quota in the development of the state, shunning corruption and ensuring best practises and conduct wherever they find themselves.
Ashiru also assured that the government of Ogun State will not renege in its effort to boost the economy of the state especially ensuring a conducive environment for new corporations to be established noting that the IGR of the state is now between N6 -7Billion.