The future that we were warned against seem to have arrived. Reality has set in and hardship is hitting harder in many homes. Just the other day, I heard a story of a woman of four kids who traded one of them in order to feed the rest. She allegedly went to the market with the youngest child of may be 4 years old and after requesting for food stuff, left the child with the seller in pretense to go bring the money from her car. The seller through the help of the young lad was able to trace the woman to the house where she was found having a meal with the rest of the family. She obviously had made up her mind to sacrifice that child in order to save the rest rather than lose all. For me, that story best defined hardship!
The National Bureau of Statistics today, released the country’s Gross Domestic Product (GDP) figures for the second quarter of 2016 and it showed a further negative growth from -0.36 in the first quarter to -2-06 per cent. Recession as explained by many economists is simply a situation where there is a general downturn in any economy which is usually associated with declining Gross Domestic Product (GDP), high inflation and high unemployment (these are the true and real description of the Nigeria economy at the moment).
A major indicator of a recession is when there are two consecutive quarters of negative economic growth as measured by a country’s GDP. This is obviously the state of the nation by all indications. I was analyzing this report with a friend this afternoon and he asked a funny but vital question “Is Nigeria just getting into recession?” according to him, recession was long resident in Nigeria with a mansion in highbrow area of the country. We all laughed hard when he said this but really there was something to think about in that statement; is Nigeria just getting into recession really?
Well, the fact is that there are two sub indicators of recession which are: the leading indicator and lagging indicator. While the latter includes unemployment rate, leading indicator materializes before the recession is officially declared which is usually seen through a steady contraction in the stock market. Nigeria have been in recession long before now only that it has become more glaring and the effect is spreading faster than expected. Going by both the leading and lagging indicators, it is confirmed that Nigeria is in recession. We hear that an emergency economic bill is being passed by the Federal Government in order to steer the country out of recession and I wonder why we had to wait till it got to this state before taking necessary steps. Well, whatever the case may be, we hope and sincerely pray to get out of this real soon.