Tinubu advocates deficit spending to end recession

Achieftain of the ruling All Progressive Congress (APC), Bola Tinubu has urged the Federal Government adopt deficit spending in moving the country out of the current recession.

He made this known yesterday at the National Defence College (NDC) Abuja, in his paper presentation to Course Participants titled: “Strategic leadership: my personal theory and practice.”

Tinubu said government must avoid the nostrums of mainstream orthodoxy that says government deficits are always bad.

He added that government must ease monetary policy to stimulate the economy: “you have to spend yourself out of this recession and you cannot do that by consistently stifling the Banks of liquidity.

“The monetary policy needs constant reviews and evaluations, and how it would affect the market and ordinary people as well, because if there is no liquidity in the market the Banks would price out the ordinary man, and inflation is growing at 18 percent.”

He added that deficit spending is essential to bolster aggregate demand and direct funds to projects that build infrastructure and bolster employment.

Tinubu also said its better to harmonize monetary policy with fiscal policy, arguing that it undercuts our goals if monetary policy is unduly tight at a time fiscal policy begets deficit spending.

He said Nigeria can no longer allow cheap imports to preclude the development of industries and sectors strategic to enduring economic future.