Against the backdrop of high expectations among some stakeholders, the Yenagoa Chamber of Commerce, Industry, Mines and Agriculture (YECCIMA) has said election spending does not contribute to economic growth.
Idikio Warmate Jones, director general, stated this in a chat with BusinessDay in Yenagoa on the state of Bayelsa State economy after the 2015 general elections.
Idikio explained that election spending does not affect the real sectors of the economy and as such “usually does not have robust long term effect on the economy.”
Many Bayelsans had expressed hope that monies released by political parties and their candidates during the election period would go a long way in stimulating the state economy. A few weeks after the general election, both traders and consumers are nonplussed that the state of the economy does not reflect the huge amount of money allegedly released by political parties and their candidates.
But Idikio maintained that election spending provides only consumption investment where services provided are geared towards consumption and does not reflect the kind of purchases that characterise economic activity.
According to him, “Post election, the economy remains slow especially as oil prices have not picked. No real investment has taken place in any economy, especially in Bayelsa State.”
Idikio, however, expressed hope that the local economy would soon experience a boost as the state government continues with efforts to access the Central Bank of Nigeria (CBN) N220 billion Micro, Small and Medium Enterprises Development Fund (MSMEDF).
