Recession in Nigeria, how it all began, and necessary lessons to learn from this tough and hard time in Nigeria.
The word recession is probably the most trending word in Nigeria today, not just because we choose to mouth it, or because we hear it in news every day, but because of the reality it puts before us – it is not just a word. We say Nigeria is in a recession, what exactly does recession mean? Maybe I can help; It is a significant decline in economic activities – without mincing words, it means Nigeria is broke. But are we truly broke?
Economic expects have said that a recession means there is a decrease in these economic indicators: real GDP, Income, Employment, Manufacturing, and retail sales. The finance minister of Nigeria Kemi Adeosun made it known that the economic situation in Nigeria is in “its worst possible time”
We must also note that economic recession is experienced when aggregate spending both by consumers, investors or even the governments decreases below required economic activities and necessities. Recession doesn’t happen overnight, it comes with signs and warnings over time. It started during the previous administrations, what these administrations did was to bury and ignore every signs. What was more important to the GEJ administration was the transitional activities – not even when signs became more prominent during an election year.
The former Governor of the Central Bank of Nigeria (CBN) Professor Charles Soludo stated clearly in 2003 when the price of crude oil was above $100 per barrel that the price of the crude is decreasing and a recession was inevitable, even the former Minister of Finance Dr. Ngozi Okonjo-Iweala in 2014 advised the government to buckle up and prepare for a possible recession. These people were actually termed prophets of doom, and all call to actions were ignored. The election loss of the GEJ administration plunged Nigeria further into the recession today.
The national Bureau of Statistics (NBS) released a report on the Nigeria’s economy in the second quarter, this report showed that oil price has crashed to less than $50 per barrel; production output tumbled over 400,000 barrels, thanks to the Niger-Delta Avenger. So the oil production crashed to 1.62 from 2.11 million barrels per day in the second half of 2016. This left inflation rate shrinking at 17.1%, black market dollar rate fluctuating between NGN 465-470 to a dollar. Nigeria right now is just in shambles.
What implication does this recession have on Nigeria and what do we need to learn? It is simple, we did not provide for a day such as this – we did not save when we had excess, we failed to build infrastructures, we have nothing to drive the economy – not even electricity. This led to me to the second thought I’ll be sharing soon, aimed at showing Nigerians how to live above recession. I’ll be sharing a principle I call the “FIELD and FLOCK” principle – got this principle from the Holy Book, it promises to be revealing and engaging.
To rise above recession, we must first learn our lessons, and then pay the price to build Nigeria.
This thought is one that is really dear to my heart because I have seen and felt directly the impact of recession, many of my friends and family have got retrenched, for those who still have their jobs; their earnings probably can’t pay their bills like me.
NB: The second stream will uploaded within 24 hours, please stay tuned.
HINT: Economic Revolution is the only solution to economic recession we are faced with.
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