Editor’s note: Joshua Oyenigbehin, the NAIJ.com partner blogger, reveals ten reasons Nigeria may not get out of the economic recession soon.
Joshua could be contacted via: https://stationofthought.wordpress.com/ or email@example.com
Recession is no doubt the most used words in Nigeria in recent time. Nigerians are feeling the heat as the country is trying to survive her worst economic crisis in her history. Nigerian economic woe is not new to the majority of Nigerians, even before when it was officially declared by the Minister of Finance, Kemi Adeosun.
Majority of Nigerians are familiar with poverty, they have learnt to survive without the basic necessities of life. This particular economic reality is an eye opener to the fact that the past Nigerian leaders had no plan for the advancement of the country.
The reason Nigeria is in recession is obvious, we had no plan; the only way to get out of it is to change some of our habits. Nigerians who have insight had seen this coming, they knew that we will plunge ourselves in an economic distress, with the way the country’s resources were wasted, embezzled, misappropriated and underused. Although, the federal government has made promises, it has given its words on how it intends to maneuver the country out of this economic crisis.
These are some of the factors that may impede federal government’s efforts at putting economy on the track:
1. The Craze for imported goods
Nigerians love luxury, especially those that have their origin outside the country. We want to use the best products, in a bid to show off our asset. Unfortunately, the flair Nigerians have for imported stuff is detrimental to our economy. Nigerians would rather go for products made abroad, thereby shunning the same products made in the country.
The fact that we expend our precious external reserves to promote exported goods and building the economy of other country would make our economic recovery inconsequential. The craze for import goods would continue to weaken the Nigerian’s currency.
2. Inadequate Power supply
It is no news that Nigeria has been grappling with erratic power supply right from time. Nigeria generates less than 4,000 megawatts (MW) annually, though we have a growing population of over 170 million people.
It is an undisputed fact that businesses only strive when an adequate power supply is available. Nigerian businesses are failing today because the energy they need to run are inadequate or in fact unavailable. Until this problem is solved Nigeria might not be able to weather the storm of this economic distress.
3. The failures of the government
The government has failed in all ramifications to fix the economic problems. Those at the helms of affairs made promises to fix the economy but their body language does not project any form of seriousness.
The APC government has not done enough to give Nigerian the assurance that the economy would be stabilised before the next general election. They have only succeeded, just like the previous government, to pay lip service to all their commitment to Nigerians.
4. Corruption and mismanagement
To say that Nigeria is synonymous to corruption is not a fact that is far-fetched; Nigerians of all walks of life (not just those in government) are guilty of corruption. Corruption and mismanagement in government has drained the country of the valuable resources needed by the country to grow the critical sector of the country.
The resources needed by the country to build the necessary infrastructures for economic growth of the country have been cornered by some Nigerians who are privileged to be in government. Foreign investors have lost confidences in the country due to the social ill. In a nut shell, corruption is the bane to Nigeria’s economic recovery.
5. The high cost of governance
The high cost of governance has sapped a huge chunk of the country’s resource. There is no gainsaying that the cost of governance in the country is one of the highest, if not the highest in the world.
The ludicrous amount earned by public office holders is enough bait to pull corrupt heads into the country’s administration. The situation is such that a meager number of one percent of the population of the country has access to a huge amount of the country’s resources; with the remaining 99 per cent of the populace linger in deprivation and poverty.
6. The persistent low crude oil price
The decline in crude oil price in the global market in the wake of the ascension to power of President has in a progressive manner affected the economy since crude oil is the mainstay of the Nigeria economy.
This situation has brought to fore the reality of Nigerian economy being a mono-economy. The reduction in our foreign exchange has affected the amount coming into the country, thereby reducing the amount spent by the government to provide the resources needed to advance the country infrastructure in other to encourage and promote investment.
7. The failure to diversify the economy
The failure of the government to diversify the economy is one factor that would, no doubt, cause our economic woes to persist. The failures of the government to revive the manufacturing sector, especially the areas of manufacturing that once strived in the country (the textile industry, Ajaokuta steel, etc), is one of the reason recession would continue.
The agricultural sector also must be looked into for economic revival. Small scale business must be encouraged to strive in the face of harsh economic reality. The mining sector has also been to a very large extend been ignored. If these sectors are not revived our economy would always be ill. If not, the country would linger in her economic woe for a long time.
8. Lack of investment in the educational sector
The educational sector has been deprived of the financial and moral boast that it needs. The education sector is the source of the revival of not just the economic sector of the country but also all other sectors in the country. In young generation is the salvation of the Nigerian society. The failure of the government to see this sector as a priority would only cause us to linger in our economic mess.
9. Vandalism and sabotage of government properties and oil installation
The continued and renewed attacks and sabotage of government installations, especially oil facilities would always undermine the economy of the country the more, since the government would have to spend more to reinstall and to protect the facilities; knowing fully well that the government gets it revenue from this installation. If the attacks on the properties of government continue, our economic revivals will be in an illusion.
10. Insurgency, violence and other security challenges
The security situation in the country has continued to repel interested investors who intend to invest in the country. The dreaded Boko Haram insurgency, the religious crises in some parts of the North, kidnapping, armed robbery, ritual killing and other criminal activities has dissuaded investors from investing in Nigeria. Until the security challenge in the country is looked into, recession would continue to be the adjective used to describe the Nigerian economy.