21 November 2020
Nigeria don officially enter economic recession for di second time in four years.
According to gross domestic product numbers wey di kontri National Bureau of Statistics release on Saturday, Nigeria record contraction of 3.62 percent for di third quarter of 2020.
Di latest figures from di National Bureau of Statistics show say Nigeria oil GDP dey among one of di worst hit dis time around, as e sustain -13.89% contraction.
Nigeria last enter recession for August 2016 wen di slump in global oil prices hit di kontri economy.
Nigerian government depend on oil sales for at least 65 per cent of dia revenue, dis dey ensure say any wuruwuru wit global oil industry go always dey critical to Nigeria economy.
Di kontri oil output also dey for dia lowest since 2016.
Unlike for 2016, di recession dis time around fit dey worse as no be only oil dey affected. Other sectors like arts and entertainment, real estate, professional and technical service and education don also contract significantly.
Meaning of recession
Recession dey happun wen di kontri gross domestic product or GDP bin get negative growth for, most times, two consecutive quarters.
Gross Domestic Product na di total moni value or market value of all di finished goods and services wey dem dey produce within di kontri to sell to other kontris.
As Nigeria dey enta recession, e mean say all di value of moni wey oda kntris go pay for product wey dem dey sell give dem go reduce.
How dis go affect pipo for di kontri?
- For businesses, e go affect di revenues wey dem dey make. Dia cost of doing business go increase and e fit dey difficult to increase sales.
- Goment go need review on-going projects and dem fit stop some of dem, e mean say pipo fit lose dia job.
- Plenti pipo go lose dia job as small businesses and manufacturing firms fit cut jobs to adjust to di new reality, dis na according to report from nairametrics.
Recession under Buhari
Dis recession go make am 3 times wey Nigeria don enter recession under President Muhammadu Buhari.
According to Reuters, Nigeria bin dey long recession from 1982 until 1984. President Buhari bin di Military head of state from 1983 to 1985 afta im overthrow Shehu Shagari.
Also, between April and June of 2016 Nigeria enta recession as di economy contract by 2.06% after di kontri see two consecutive quarters wey di economy decline for growth.
How dem take tackle di last recession?
After plenti pressure, federal goment allow di naira to float.
Dis one mean say goment no go chook mouth for di foreign exchange market, dem no go put any fixed rate for value of di naira against other currency for foreign exchange market.
Dis way di demands of product from di kontri go determine di value of di currency.
Di decision to float di naira for 2016 lead to increase in inflation but di hope be say e go attract foreign investors. Di goment also tok say di kontri need to import less, dem begin advocate for made in Nigeria products.
“How bad dis recession go be?” and “How soon di kontri go fit recover?” dis na di two questions we go dey hear in di coming months and weeks.
More details still dey come…