April 12, 2021


Dambela Blog

What to expect and way-out as Nigeria slide into recession

3 min read

Nigerians have been told to brace up for a hard time as the nation’s economy entered into a second recession in five years.

The National Bureau of Statistics (NBS) has formally announced that the nation’s economy had entered into a recession as the Gross Domestic Product (GDP) contracted for the second consecutive quarter by 3.62 per cent in the third quarter of 2020.

The agriculture sector is declining, and it will affect the cost of living. “Cost of food items will be high and the standard of living will be low for the common man.

During this recession, the prices of food would increase following the low level of agriculture and oil production during the Covid-19 pandemic lockdown. Many Nigerians would develop illnesses arising from poor nutrition and starvation.

The main cause of this recession in the fall in the crude oil price and a shortfall in the oil earnings.

“It is a difficult time for the common man compounded by the rising inflation. “The government should focus attention on how we can feed ourselves and make sure that prices of food items come down in such a way that people would not die of hunger.

Government should focus its attention on agriculture, and for that to happen the issue of insecurity must be addressed. The government needs to be more aggressive on the issue of insecurity because people are still being kidnapped and people cannot go to farms which is still causing the food crisis that we are having.”

Federal government should scale up the empowerment and intervention funds programmes by the apex bank and economic sustainability programme of mass housing to grow the ailing economy.

Another measure is a long-term measure which boils down to infrastructures. The government needs to invest in infrastructures with private sectors. We need roads, railways because they will boost transportation of goods and services from areas of production (or high supply) to region of high demand and which in turn reduce the cost of living and increase the standard of living.

The Director, Centre for Social Justice, Eze Onyekpere, urged President Muhammadu Buhari to rise to the occasion and ensure that competent Nigerians are brought on board to manage the economy, irrespective of their religious, ethnic or political party affiliations.

He also advocated the pruning of inappropriate, unclear and wasteful expenditure proposals in the 2021 budget, which are in excess of N235 billion.

“The president should ease the tension in the land, curtail the abuse of human rights and fundamental freedoms by his appointees as a condition precedent for Nigerians to unleash their creative and productive potentials and energy in unity, bound by a common goal to establish a prosperous, growing and developmental economy which will benefit Nigerians in Nigeria and help take us out of this recession.

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