Nigeria goes into economic recession
NaijaRock
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Posted by Felix Okoli on Friday September 2, 2016 at 9:42:29:
I recently watched a BBC news report that Nigeria was officially in recession. I've also confirmed that it's true after reading a local Nigerian paper report of a minister talking about the recession. The National Bureau of Statistics (NBS) of Nigeria also published a report on it. Yes, it's official! Our economy is a recession.It's just barely 1 year of change with a new government in power and our economy is already getting weaker. Is the new government responsible for it? We can't precisely say yes or no because the recession may not have been avoidable in the first place even if the old government continued in power. So the question about who is responsible for Nigeria's economic recession is debatable as some will argue that it was Buhari's fault for not appointing ministers early while some will argue that it's Jonathan's fault for wasting money.For those who did not know, much of the developed world had been in recession fro a while and this included countries like the USA, UK and Canada. What is an economic recession? It's a period of temporary economic decline during which business activities slow down for 2 consecutive quarters.So, if the economic activities of a country starts to recede (go negatively or backwards) for a straight 6 months in a year, then that country is in a recession.According to the statistics released by the National Bureau of Statistics (NBS), Nigeria's GDP contracted by 2.06 percent in the second quarter of 2016, following a contraction of 0.36 percent in the first quarter.I think a major reason why Nigeria's economy is doing badly is as a result of the non-diversification of our economy by successive Nigerian governments. Nigeria has been mostly operating a mono economy since over 70% of our income comes from crude oil exports. If President Buhari also fails to diversify the economy, the problem will grow bigger and in the future, more Nigerians will end up poorer.
I recently watched a BBC news report that Nigeria was officially in recession. I've also confirmed that it's true after reading a local Nigerian paper report of a minister talking about the recession. The National Bureau of Statistics (NBS) of Nigeria also published a report on it. Yes, it's official! Our economy is a recession.It's just barely 1 year of change with a new government in power and our economy is already getting weaker. Is the new government responsible for it? We can't precisely say yes or no because the recession may not have been avoidable in the first place even if the old government continued in power. So the question about who is responsible for Nigeria's economic recession is debatable as some will argue that it was Buhari's fault for not appointing ministers early while some will argue that it's Jonathan's fault for wasting money.For those who did not know, much of the developed world had been in recession fro a while and this included countries like the USA, UK and Canada. What is an economic recession? It's a period of temporary economic decline during which business activities slow down for 2 consecutive quarters.So, if the economic activities of a country starts to recede (go negatively or backwards) for a straight 6 months in a year, then that country is in a recession.According to the statistics released by the National Bureau of Statistics (NBS), Nigeria's GDP contracted by 2.06 percent in the second quarter of 2016, following a contraction of 0.36 percent in the first quarter.I think a major reason why Nigeria's economy is doing badly is as a result of the non-diversification of our economy by successive Nigerian governments. Nigeria has been mostly operating a mono economy since over 70% of our income comes from crude oil exports. If President Buhari also fails to diversify the economy, the problem will grow bigger and in the future, more Nigerians will end up poorer.