By Tony Obiechina & Ubong Ukpong, Abuja

Chairman of the Senate Committee on National Planning and Economic Affairs, Senator Yahaya Abdullahi said on Wednesday that Nigeria was facing the worst economic crisis in the history of its existence.

Yahaya who spoke at the inaugural meeting of the House Committee on National Planning said there was the need for the National Assembly, represented by the two committees to sit with the executive arm of government to work out ways of getting the economy back on track.

He said the committees of National Planning in both the House and the Senate should ensure that they work hand and hand in the next four years to achieve the set target of turning around the nation’s economy, while advising the executive on the way forward.

He warned against any mistake on the part of the parliament that may compound the already precarious economic situation in the country, adding that the parliament must be able to guide the executive on how to get out of the quagmire.

Senator Abdullahi said that both committees will soon convene a joint meeting of both committees to enable them discuss their agenda of working together in the overall interest of the country.

Recently, it was reported that Nigeria’s headline inflation rate for Oct rose to 27.33 percent. The figure is 0.9 short of the 28.2 percent recorded 18 years ago, in August 2005, according to the National Bureau of Statistics (NBS).

The NBS in a report released last week said on a year-on-year basis, the headline inflation rate was 6.24 points higher compared to the rate recorded in Oct 2022, which was (21.09 percent).

“The increase in the headline index for Oct 2023 was attributed to the increase in some items in the basket of goods and services at the divisional level.

“These increases were observed in Food and non-alcoholic Beverages (14.16%), Housing, Water, Electricity, Gas & other Fuel (4.57%), Clothing & Footwear (2.09%), Transport (1.78%), Furnishings & Household Equipment and maintenance (1.37%), Education (1.08%) and Health (0.82%). Others are Miscellaneous Goods & Services (0.45%), Restaurants & Hotels (0.33%), Alcoholic Beverages, Tobacco & Kola (0.30%), Recreation & Culture (0.19%) and Communication (0.19).”

The report said the food sub-index for Oct 2023 increased to 31.52% on a year-on-year basis, which was 7.80% points higher compared to the rate recorded in Oct 2022 (23.72%).

According to the report, the rise in food inflation was due to increases in prices of bread & cereals, oil & fat, potatoes, yam and other tubers, fish, fruit, meat, vegetables and milk, cheese, and eggs.

“However, on a month-on-month basis, the Food inflation rate in Oct 2023 was 1.91%. This was 0.54% lower compared to the rate recorded in Sept 2023 (2.45%).

“The decline in food inflation was caused by a decrease in the average prices of Fruits, oil and fat, coffee, tea and cocoa, bread and cereals”, it added.

Also speaking, Chairman of the House Committee on National Planning, Ibrahim Ayokunle Isiaka said the committees can only succeed in their assignment if they work together and reinforce one another as a team.

He drew attention to the fact that national planning involves the process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the national goals.

He said there was need to “roll our sleeves and tighten the belts for the tasks ahead in the spirit of nationalism and patriotism, adding that the committee would join hands with all well-meaning stakeholders to create and bequeath indicators that will be adjudged one of the best in this 10th Assembly.

He said the committee would embark on Inter Governmental and Budget Reforms of multi-faceted and interlinked nature of sustainable development, which calls for interventions to be tackled simultaneously through a coordinated approach for reversing the declining economy, stabilizing the polity and integrating the various societal interests all with a view to enhancing national development.

He disclosed that currently, there is a mixed reaction among various stakeholders including scholars, the media and some members of the private sector but the committee would do its best at bridging the gaps between the euphoria and skepticism about this concern.

He said, “For all of us as a committee, the executive and bureaucrats, our Cooperation Framework shall detail not only how we can work together but we shall work together.”

Reacting to the development, foremost economist, Professor Uche Uwaleke said, “It is stating the obvious to say that the nation’s economy is going through turbulent times.”

Speaking in a telephone interview with Daily Asset, the first Nigeria’s Professor of Capital Market noted, “The numbers from inflation rate, Exchange rate, GDP growth rate, unemployment rate as well as poverty rate do not look good.”

According to him, “These are however legacy issues compounded by the country’s huge debt burden.

“The suggestion that the National Assembly should join hands with the executive arm to find solutions to the myriad of economic challenges facing the country is in order.

“This should include working with the state governments to ensure the implementation of key aspects of the National Development Plan.”More importantly, it requires a commitment to prudent spending that focuses on priorities on the part of all the tiers of government.”