A development economist, Dr. Ken Igboanugo, has revealed that contrary to earlier speculation that bad economic policies and acclaimed looting by 16 years of Peoples Democratic Party (PDP) caused the 2016 economic recession, it was caused by the implementation of Treasury Single Account (TSA).
This was the position of leading development Economist, Dr. Ken Igboanugo in an exclusive interview with Business Hilights Bureau Chief, Abuja.
According to him, “Taking government deposits from banks without reduction in mandatory reserves is bad economics and the process took Nigeria to recession in early 2016.”
It would be recalled that Nigeria has slipped into recession, with its growth figures showing the economy contracted 2.06% between April and June 2016 before sliding to negative growth.
However, the exit from recession came as soon as the economy saw two consecutive quarters of growth.
Since the exit of recession in late 2017, statistical fundamentals have been on snail speed which analysts say does not show strong growth potentials.
