What is Recession: ‘Nigeria economy go definitely slip into recession sake of COVID-19’- see wetin e mean & how e go affect you

Nigeria goment say coronavirus pandemic and di way oil prices dey fall go make di kontri enta recession.

“On di economy, COVID-19 don make oil prices collapse. Dis go get negative impact wey don already dey show for di revenue and di moni wey di kontri dey make from foreign exchange.”

Na wetin Zainab Ahmed, di Minister of Finance, Budget and National Planning tok afta di National Economic Summit meeting wey happun for Abuja on Thursday, di minister announce dis one.

“Net oil and gas revenue and influx to di federation account for di first quarter of 2020 na N940.91billion. And dis dey represent shortfall of N125. 52billion or 31% of di amount wey we suppose don realise by di end of dat first quarter.” She tok.

Wetin dis recession mean (What is 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.

and 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.

Di meeting wey di Vice president of di kontri, Prof. Yemi Osinbajo head, na to tok on di way forward for Nigeria economy as global oil prices dey fall.

Thirty-six state govnors, di FCT Minister, Central Bank Governor and other top goment officials for Nigeria dey for attendance.

She add am say di way di economy dey reduce go multiply di misery of poor pipo for di kontri.

She believe say if goment fit do everything wey dem don propose dem fit end up with recession of -0.4%.

“In any case, we go enta recession, wetin we dey try do, na to make sure say e dey shallow and we fit come out of am quickly by 2021”. she tok.

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Nigeria don enta recession before?

Yes. 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.

And dis dey come sake of fall in global oil prices.

Di price of oil fall from about $112 per barrel for 2014 to below $50 for 2016.

Figures show say di fall in di Nigerian currency, di naira, hurt di economy.

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 are two questions we go dey hear in di coming months and weeks.

Though di Minister of Finance, Zainab Ahmed don tok say di palliatives wey goment dey share to households during dis pandemic go help reduce di impact on poor pipo.