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HOW DELAY IN CABINET FORMATION AFFECTS THE ECONOMY


Since
the inauguration of the second term of this administration on June 12, the citizens and international community expected that the government in power must have understood the enormity of the nation’s problems in the last four years, and would have selected during the campaign, those that will help handle the different segments of the economy to ‘take the country to the next level’. This would have given hope and confidence to people that the government really has the speed that is required to take the country to the next level. This delay in so many ways has dampened the hope of citizens that the government will squarely confront the security issues which have affected the economic life of the peasant and industrial farmers, who on a daily bases are kidnapped by herders in their farms while their cash crops are used to feed their cattle. Besides, the fact that this action has discouraged farmers from going to farm, the country will definitely experience dire scarcity of food. This will worsen the inflation rate with the level of unemployment experienced in the country. Unfortunately, there is no minister to initiate policies that will proffer solution in this sector.
The entrepreneurs need to know the direction the government is headed in order to plan their action and draw business plan. The delay has slowed down business activities and some employees have even lost their jobs because of this. Every investor is encouraged to invest more when the return on their investment is high, the structural problem that is occasioned by this delay has drastically worsened the economic situation in the country and reduced the purchasing power of almost every segment of the country. Some of the multinational companies in their bid to remain afloat restructure their companies by downsizing or using central reporting control structure from their head quarter that will eliminate high caliber indigenous staff.
Nature abhors vacuum and the need for continuity in every process in government especially on infrastructural development cannot be over emphasized. This is because the time lags in infrastructural development which by its nature will always spill over to the next regime. The delay
in forming cabinet will definitely slow down job in this segment and discourage policies for new projects because the minister must be the one to take proposal to the federal Executive Council for approval.
The delay has obviously given a wrong impression to the international community on the seriousness of our president. This will fuel capital flight as most of them will divest in Nigeria and discourage foreign direct investment. This will create revenue- gap as the government will not be
able to meet its expenditure needs. The government will not be able to stimulate the productive base to boost the existing production capacity.
The linkage effect of this delay in forming cabinet by the president worsened the stagflation situation in the country, and increases the rate of insecurity. It is our hope that the national assembly will treat with urgency, the ministerial list submitted to them.

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