August 31, 2016, BBC announced that Nigeria has slipped into recession, with the latest growth figures showing the economy contracted 2.06% between April and June. The country has experienced two consecutive declining growth, which defines a recession.
Crude oil which accounts for 70% of the government’s income, has been hit by weaker global prices, according to the Nigerian Bureau of Statistics (NBS). The price of crude oil has fallen drastically from 112 USD per barrel as at 2014 to less than 50 USD at the moment.
Many people claimed that amidst this, government policies have not been helpful, as the quest to redeem the naira or keep the naira at its peak, thereby not devaluing it has caused more harm than good.
The recession in Nigeria has not been without some benefits both on the part of the government and the citizens.
Other sectors of the economy are currently experiencing drastic development. The country’s absolute dependence on crude oil in previous years has reduced, the agriculture and solid mineral sectors have experienced massive development as the federal government has placed priority on these sectors.
On the part of Nigerians, this period of recession is a lesson to controlling extravagance and wasteful spending. In previous years, Nigerians spend so much money on things that they do not even need.
Spending money at parties just to show is our culture. Trying to impress or oppress others with our dressing is our culture. Eve fairly-used items are now very expensive. The fact that many Nigerians cannot afford a lot of things they could before has led to the proper planning of funds in many homes, this may continue after the recession.
Also, Nigerians are learning not to put away things that are useful to them because they are simply tired of it. Thus, we have a great improvement in the maintenance culture of Nigerians.
My dad has a friend, who stays at Ogun state but comes to Lagos almost every week to do his business. This man lodges in a hotel room and pays a lot every week, now he has rented a two bedroom flat in Lagos for less.
Maybe this recession is not as bad as we think, it’s may just be an eye – opener for Nigerians. Even those who are making money now are investing in real estate rather than foreign exchange. Housing on the Island may become more affordable or accessible to middle-class men and women because of it’s increasing vacancy.
Maybe we are on a training ground to having a better Nigeria or investing in Nigeria. Sure this thick cloud is with beautiful silver linings