Nigeria’s Economic Recession. 2017 Budget As An Exit Strategy.

Nigeria’s Economic Recession. 2017 Budget As An Exit Strategy.

Before we dive into the aforementioned topic, we need treat what exactly an Economic recession means. According to what I did study in the university, An economic recession has been defined as a sharp decline in the gross domestic product (GDP) for two or more consecutive quarters. For GDP has been defined as the market value of all goods and services produced within a country in a given period of time.

If this be the case, Nigeria has been experiencing this situation for some time now.

No doubt about the fact that Nigeria as at now, is experiencing recession the worst the country have experienced. Well, we will be taken a holistic view on how the 2017 Budget will be an exit strategy. But before then, we need to analyse how did Nigeria actually found herself in this situation.

According to experts, “when a Nation refuses to plan ahead, it falls into mess as serious as this”. A nation that fails to plan, have already planed as it where. The current economic woes the Nation finds herself was not caused today by the present administration led by President Buhari that will be a lie if ever we say so. The lack of financial plan by the last administration was a prerequisite for the dire situation we are today.

We all remember that during the administration of Jonathan, oil went higher and Nigeria whose crude is the most valued among in international market sold a barrel for a very high significant cash but due to wide spread of corruption, that very administration could not give account for the wastage.

Factors that Cause Recessions

Now we need to analyse some basic factors that must have led to the current financial situation today.

We have what we call the High interest rates which are is a very huge cause of recession because these high interest rate do limit liquidity, or the amount of money available to invest.

When a country starts experiencing an increased inflation. From definition we could tell that Inflation refers to a general rise in the prices of goods and services over a period of time. That is to say that as the prices of goods increases, the percentage of goods and services that can be purchased with the same amount of money decreases. That is exactly what Nigerians are finding themselves currently. Where a bag of rice is sold for N27 thousand naira.

Reduced consumer confidence. In this scenario, If consumers do believe that the economy is bad as we have it in Nigeria, they are less likely to spend money because of the fear that it might not come back to them. This is the exact scene we are facing here in Nigeria. Experst do believe that consumer spending can have a real factor on the economic situation of the country though Consumer confidence is psychological.

Reduced real wages,. This means that a worker might be making money which he do makes before but his paycheck is not keeping up with inflation. This means that his purchasing power has been reduced drastically. This might also lead to inflation.

The next issued based factor to discuss now is actually what must have caused this situation Nigeria finds herself.

One of the issues Nigeria as a Nation faces today is the idea of casting aspersions on previous regimes for the lack current development. At this point, I do believe that casting blames on previous regimes won’t do anyone good rather it will cause more damage. So with all fairness I will be citing some of the causes of this economic ocean the Nation currently swims in.

It is no surprise that Nigeria as a whole after the discovery of oil, have neglected other aspect of her economic strength eg, Agriculture etc and today the neglect of these other economic areas and the over dependence on oil currently haunts the Nation in an unexpected atmosphere. Though, I still do believe that whatever the case maybe, there is hope. Lets continue.

The carelessness of the Nigeria Economic team under previous regimes have Over the years, paid lip service to the development of the Non –oil sector. A scene which have resulted to the over dependence of the non oil sector production and have also been a hindrance to development in Nigeria. And this is why the drop in oil prices has depleted Nation’s economic revenue earnings whose effect as it where is crystal clear like the biblical Mene Mene euphason, visible to the blind and audible to the deaf. This has also resulted in less money for the Government to spend and have also piled up undue pressure on the available foreign exchange. For any country who operates a mono economic system as that of Nigeria, this is the nightmare you face.

Recently, CBN decided to make foreign currencies more available to producers by announcing a flexible exchange rate and it has become a burden to all because of the dearth exchange rate by the CBN which have been made available to manufacturers and business people. For me and some other regional experts, we believe that this policy is quite okay for a staggering economy as that of Nigeria but to a large extent, the timing has been what I do think should be looked out for.

A Government is a continuum.

I have said this and will keep saying it. The problem Nigeria faces today is the lack of continuity. Why on earth will a new government stop the ongoing development onground simply because you never adopted the development policy? Simply because you want to make your own mark? Is it about an individual or the country as a whole? Let no transition in government stall any meaningful because it will be counterproductive. We can start citing various projects new governments in the country have stalled simply because there was a transition.

If Nigeria was operating a Socialist system of Government just as we have in Venezuela, the case would have been worst by now. This shows that Nigerians are on track to glory but the Federal government needs to be more proactive. I feel we should stick glue to the developmental policies of previous administration or improve on it, not the issue of totally neglecting it

The issue of fighting corruption in the public sector and putting the whole Nation in a state of teledubite or in a state of huga morga is meaningless to me. If we are to actually place aspersions on anyone, President Buhari has much to account for. After all, the Nation was on a standstill for six months without federal ministers. Where on earth can that be found? The lack of appointing ministers for six months placed the country in a state of diving in a pestilential and a terminus aqua.

It will be wise to take a glossy look at England. The resignation of David Cameron as Prime Minister due to Brexit, needed to have delayed the appointments of cabinet ministers. But Immediately Theresa May was appointed Prime Minister, instantly, cabinet members were sharply appointed too. This is how you get to know of a Nation who would do all it takes to avoid economic recession or woes. They are very Proactive in their dealings. But in our case, after years of campaigning, it still took Our Amiable President up to six months to appoint federal ministers. This meant that, he single handedly chairman all federal ministries.

Now, let’s look deeper. After the appointment of the ministers, he made himself the minister for petroleum. How on earth can he be ruling this complex Nation and still have the ability to handle the petroleum industry which is the hub of the Nation’s wealth.

For me, if the Nation decides to Unbund the NNPC, then it will be a blessing in disguise because it will be an abomination the Nation needs to employ. But this as it were should be done adequate an informative consultations with the oil workers and the National Assembly in other avoid grazing the mascadaban of a scenario that occurred earlier this year is key.

Nigeria’s Economic Recession. 2017 Budget As An Exit Strategy.

The real deal in a Nation experiencing recession is that money is quite needed to act as a stimulus in a period of recession. This means that Nations are spend out of a recession and not unnecessarily applying austerity measures.

According to Pete Sessions “History shows that tax increases during a recession are a recipe for greater unemployment and economic loss.
I recently witnessed a televised programme where it was announced that the FG through the Ministry of communication have decided to introduce a tax of 9% on all calls, texts and data packages. This is totally uncalled for. It is totally.

Pointing or aspersing blame on any regime be it previous or present will be out of place at a crucial time like this. In fact it will do us more harm than good even though we can tell of which regime did place the Nation in this melancholy. But one thing that needs to be addressed is that Poverty is not selective of its victims.

The sole problem of the Nigeria government have been that of Mismanagement of our resources both human and material resources. In conclusion, Nigeria will soon be out of her economic woes but we must set a table for development.

Nigeria’s Economic Recession. 2017 Budget As An Exit Strategy.

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