Recession: House of Assembly intervenes as cash crunch hits Akwa Ibom

Not known for a business culture, Akwa Ibom, a largely civil service State in the South-South Nigeria, has been melting under the yoke of biting cash crunch occasioned by the ongoing economic recession.

Hope of Governor Udom Emmanuel, an economist cum banker of many years to change the hitherto civil service status of the State to an industrialised economy appears dashed as the private sector continues to long for government lifeline.

With the 2017 budget yet to be approved by the House of Assembly, many projects to be captured by the N365.201Billion appropriation including contracts and other miscellaneous issues remain a at dream levels.

“Currently, the State is reeling under heavy cash crunch because of governments, cautious approach to releasing cash; the purchasing power of the people has been encumbered because of tight economic measures of the government”, noted Prof. Gabriel Umoh, Director of Wetlands and Waste Management Studies (WWMS) at the University of Uyo.

Umoh, a Professor of Agricultural and Development Economics, said government would do well to enhance the capacity of genuine investors in agriculture and small businesses to grow the economy.

He noted that government should partner the genuine private sector stakeholders with a view to unbundling the system for socio-economic activities to blossom.

“Right now, the system is chocked because no liquidity to oil it. And this has contributed to the youths taking into petty crimes because government has not created the enabling environment to engage them meaningfully”, Umoh, who doubles as the Chief Executive Officer (CEO) of African Human Development Centre (AHDC), added.

Investigation by the Nigerian Tribune revealed that the recession and government inability to provide the cushion or safety net, has forced some small businesses in the State to close shop.

“Clearance sales”; this inscription could be noticed in some hitherto booming shops of fabrics, second hand shoes, jewelry boutiques and drinking pubs.

“We have to sell off our wares because business has not been encouraging since last year; we have to clear the goods to be able to settle the owner of the shop”, Enewan Etim, who runs boutique of men’s attires in, Uyo, lamented.

According to her, “I will save the proceeds of this bazaar, until the situation improves”.

Another lady, Emem Asuquo, who deals in jewelry and other women fabrics, said “I want to change my line of business, because this one has become dull since the recession period crept in”.

Checks by the Nigerian Tribune revealed that most eateries along Udo Street and other shops along Oron Road, Ikot Ekpene Road, Abak Road and other areas around the Uyo metropolis, could not resume, after the New Year festivities.

“Right now, it is very hard for one customer to walk into your shop to patronize new materials; they prefer to get cheap ones including made-in-Aba, at the popular Itam market”, Effiong Esu, a window shopping expert, said.

“Every Itam market day is always a booming day for the low and middle income people in this recession. They would prefer to patronize the cheap bend down boutique to pick second hand materials, shoes and other goods”, he added.

In the rural areas especially the palm fruits belts of Ukanafun, Oruk Anam, Etim Ekpo, Abak and other Local Government Areas, the business of palm produce is receding, as women and youths who mostly engage in the business have become idle.

The drought in the sector has rendered most workers in the sector jobless, while the youths have taken to petty crimes to make ends meet.

Worried by the development, the House of Assembly, it was gathered, was considering a Bill initiated by a member for Ukanafun State Constituency, Hon. Otobong Jonathan, seeking government lifeline to revamp some moribund oil palm mills in the State.

According to him, “this will create jobs and stimulate economic growth” as the price of palm oil continues to soar in the country.

In line with the prevailing economic realities in the State, the House of Assembly intervened yesterday, Wednesday, January 11.

Chaired by the Speaker, Hon. Onofiok Luke (Nsit Ubium), the House deliberated yesterday at a public hearing convened to aggregate public opinions on a Bill seeking for a law that would authorize monies to be appropriated out of the consolidated revenue fund as well as capital development fund “for the services of Akwa Ibom government and other matters connected therewith…”.

The Nigeria Labour Congress (NLC), Akwa Ibom branch led by Comrade Etim Ukpong, craved for efficient implementation of the budget and decried a situation whereby only 10.3 percent of the budget was devoted to social services.

He, therefore, impressed it on the government “to strike balance flamboyant infrastructural projects and the needs of the masses”.

Besides, the union warned government against the inclusion of the N14.5Billion Paris Club debt refund to the State, as part of the 2017 budget, but rather suggested the cash be deployed into servicing arrears of salaries, pensions and gratuities of workers.