Okonjo-Iweala warns of possible economic recession

THE Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, on Wednesday, urged ministers to seat up in anticipation of a recession following the economic problems being experienced in Spain, Greece and other European countries.The Minister of Information, Mr Labaran Maku, who disclosed this to State House correspondents, said she gave the warning at Wednesday's meeting of the Federal Executive Council (FEC).Maku, however, allayed fears that the nation was broke following the delay in the payment of salaries, saying that it was caused by the e-payment being embarked upon by the Federal Government.He assured that even though Dr Okonjo-Iweala warned against profligacy, the economy was stable and, therefore, no cause for concern.But he added that it was necessary to buckle up because Nigeria might not be able to avoid a recession if the global economic situation deteriorated, disclosing that the Finance Minister urged the Federal Government to put appropriate measures in place to mitigate the effect of such economic melt down.The Information Minister also quoted his finance counterpart as saying that occasional delays in meeting government's obligation to creditors was not a sign of weakness in the economy as the economy was still in good shape and growing at appreciable level.According to him, 'presently, we have no problem in terms of our finance management.'There has been rumour here and there, especially because of delayed payments which is due to the new electronic payment system being implemented by the Federal Ministry of Finance.'There has been occasional delay in payments, in some departments. But, that has nothing to do with Nigeria's financial position.
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