Paul Osuyi, Asaba
Governor Ifeanyi Okowa of Delta State on Thursday expressed serious concerns on the negative impact of the Novel CoronaVirus (COVID-19) global pandemic on the Nigerian economy.
Okowa feared that if the dreaded disease is not contained in the next couple of weeks, the Nigerian economy, which is significantly dependent on oil resources, may slide into recession, comparable to 2016 when most state governments were unable to meet up with their salary obligations.
Addressing reporters in Asaba during a quarterly media briefing, the governor said the global economy was under huge threat, adding that the Coronavirus pandemic would definitely take a huge toll on capital expenditure.
According to him, the implementation of the 2020 budget across all tiers of government will be seriously hampered due to the plummeting of oil prices as a result of the pandemic.
“If you have been watching the trend in oil prices, it went from $65 to $66, then down to $51. But before we knew it, it has gone to $42 and it dropped to as low as $33. It moved to $37 and at the end of yesterday (Wednesday), it returned to $37.
“I have no doubt that it will still go down because of this trade war which has the implication of troubling the oil price further. At the moment, people are no more buying because so many industries are not in their full functional state due to the effect of COVID-19.
“So there is a huge threat to everything concerning capital expenditure, and we are praying that it does not return to the 2016 level when some states were unable to pay salaries.
“The situation is not what the Nigerian government can control as it is impacting very strongly on the global economy, and there is no country that is left out.
“We hope that the containment of the virus will be achieved in a short while. If it continues longer than a few months, it is definitely going to cause a lot of recession and depression in the nation’s economy,” Okowa stated.
On the way out, the governor said his administration will slow down on the execution of capital projects, pointing out that his economic team would meet to prioritise projects in the 2020 budget.
On the proposed South-South regional security outfit, Okowa, who is the chairman of the Forum of South-South Governors, said although he had earlier expressed his personal opinion that the outfit was not necessary, his colleagues had an opposing view which led to the decision to establish a regional security network.
He said a majority of the governors wanted the outfit, hence the Forum endorsing it regardless of his opinion as chairman.
Okowa also clarified that he was not handling the incessant clashes between farmers and herders in the state with kid gloves, explaining that the government has to be discreet in handling the security challenge to avoid exacerbating the matter.
The governor also made clear that he is not thinking about a possible return to the Senate in 2023, insisting that his major priority at the moment was how to impact positively on the lives of Deltans.