The world economy will continue to experience difficulties for the next 10 years, the Group Managing Director of Energy Group, Jimoh Ibrahim, gave this position yesterday.
He said there was hardly anything any one could do on the economy at the moment other than to keep things together and avoid the extension of the recovery period.
Ibrahim explained that the world economy was growing at seven per cent in 2007 and it slides to about three per cent since 2008.
“By flow of average, the global economy has been osculating in the last seven years recording a growth of three per cent,” he said.
“Even if the global economy is going to grow at seven per cent next year, it is not possible to enjoy drastic economic boom until we make up for the deficits of the last seven years. If you calculate that and using the probability on the Monte Carlo stimulation exercise, a 10 year bet is imperative if we have good governance and do things right,” Ibrahim added.
Many regulations, Ibrahim warned, make government officials feed fat on corruption, cautioning that those who intend to keep business in the country do more public relations to stay on.
“The cost of such public relations is now unavoidable by the private sector,” he said.
The Energy Group boss added: “There are signs of recovery but our concern too is in the fact that there are dangerous conflicting signs and that is why it has become not immediately possible for the Federal Reserve Bank and the Bank of England to increase the interest rate.
“The price of oil will move up soon as we approach the weather situation and geomorphology conditions will assist Nigeria in getting better price for her oil.” Ibrahim advised the President Muhammadu Buhari administration to take advantage of the incoming increase in the price of oil to prioritise government projects and use the pilot approach in delivering its promise to Nigerians.
He urged the National Assembly to come up with ways and constitutional means of monitoring Federal Allocation to the state by way of revisiting the nation’s fiscal policies.
Ibrahim called on Nigerians to give Buhari a little more time in the face of the global economic trends.