Hello guys, We will be writing on the effects of economic recession in Nigeria and a short history of this recession. It is another day to write something on one of the Africa countries which is Nigeria where incessant economic activities plunge the national affairs and bring many investments, business, and career on stocks and at a point of standstill not knowing where to go and where to turn. This has become very incessant that it is very hard for an average man to live well and fine with families as a result of a global phenomenon which is the economic recession.
What Is Economic Recession?
The first question that ill first plunge to the mind of a rational man is what is an economic recession, in what situation and context will you know a nation is suffering from economic recession? These and many more will be given an answer as we move down the drain.
The economic recession is a state of any national economy where there exist total devastation and a headlock to the economic situation of such country. Also, we can observe or conclude that there exists an economic recession in the economy of any country that witnesses a drastic fall in the country gross domestic product for consecutive two quarters. Why this was so is owned to the fact that the GDP of any nation is always the determining factor of the market value of goods and services in the business environment in the country.
Effects Of Economic Recession In Nigeria
There are various effects of economic recession in Nigeria which we will b writing on shortly thereafter we will write on major causes of these recessions.
Fall In Price Of Crude Oil
One of the visible effects that are always noticed while their exit economic recession in Nigeria was the price of oils collapses. The rate at which a barrel of oil is processed to the rate they are been sold fell. And it is no longer new that the major channel of income to Nigeria is the crude oil and the moment there is an itch or fall in the price of this product definitely it will be having a ripple effect on the national economy even down to every sector and business environment.
So, one of the effects economic recession left with Nigeria is the fall in the crude price which is one of the reasons while the standard of living fell and scarcity of this commodity in the country. Majority of Nigeria population business makes use of the products of crude oil for their day to day business running and while there is an increase in the price than the rate of services increases and so on and forth.
Power Supply Shortage
Another glaring effect of this recession is there is always a shortage in supply of power, why was this so? The answer is not far-fetched, Nigeria operates majorly a single income business which is the crude oil and most time changes in the price of the crude oil is always the time the nation witness changes in the economy either positive or negative depending on which side of the graph the price of the crude shift to.
Rise In Unemployment
Another effect of this phenomenon called an economic recession is, it increases the rate of unemployment in Nigeria, many people have been left jobless, some are been relive of their works and some business crashes during the trying time of the recession in the economy. Even though some still make much profit at this era because of the rising in the exchange of dollars for those that deal with dollar business but it is also a colossal error to some because it makes the value of their money fell.
Reduction In Standard Of Living
Another factor that you can see about this time is that the standard of living especially in the house of the masses always reduced to the barest minimum as it can be observed some families that can afford 3 square meal can no longer afford even 2 square meal, some families who have enough to share can no longer share with anyone in need. Many constrictions in on spending.
Death Rate Increases
This phenomenon while going to her intense level always amount to high death rate as many people cannot have food and many dies of starvation, some die of not having a fund to procure their medication to for those who have terminal diseases. Also, some die of frustration and depression some even go as far as committing suicide.
For every fall in economy it always led to creeping income and with this passive income every producers and manufacturers in order to keep to standard of their products resolve to increase the price of their products or services they render and this always have a ripple effect in the market as everyone increases their own prices so as to keep to the standard and avoid falling off the chain in the business environment.
Short History Of Economic Recession In Nigeria
Economic recession even though it is a global phenomenon yet some nation still manages their country economic well to the level it cannot creep into their economy. Nigeria has not witnessed any form of recession for over some periods of year which is above 29 years now but there was a signal to the recession in the year 2009 but it later started in the year 2014 but was not as intense as it is in the year 2017 after there are a lot of economic situation in that amount to the fall of crude oil in the country.
In the era of the current Nigeria president, President Muhammadu Buhari there was a big fall in the price of the crude price and prompt increase in the exchange rate and many other economic situations that are manage begin to go deteriorated as it led to total short down of the nation’s economy.
Causes Of Economic Recession In Nigeria
The economic recession does not always surface from an obligation but as a result of some factors that are not properly managed sow will be writing on a few of these factors.
- The high rate of inflation
- The high rate of interest
- High taxation rate
- Poor economy planning
- Unstable government
- Poor government policies
All these factors contributed majorly to the problem of economic recession in Nigeria, also, it is important for any government to tackle or prevent economic recession all the factors that amount to this phenomenon must be looked into and adequate policies to put it in order should be put in place.
- History of Economics in Nigeria
- Major Economic Problems in Nigeria Today
- Problems Of Economic Development in Nigeria and Solutions
- The Largest Seaports in Nigeria
Conclusion on Effects Of Economic Recession In Nigeria
Even though this is a thorn on the skin of many Nigerians and it is one of the factors that increase to the increased in the crime rate seen in the society today, yet is as a result of unplanned measure that was not put in place by the government and agencies that are responsible looking at the situation of the country. Also, it is of great importance to look beyond just crude oil the nation majorly invests on, there should be diversification in the economy so as to improve the GDP of the nation.
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