Nigeria Economic recession Insight
Nigeria economic recession has been a global headlines some month ago. You need to know that the current financial crises facing Nigeria today started showing up in late 2014. This was the time oil price fell below $40 per barrel from around $110 with OPEC standard price. The government planned to devalue the naira in order to meet up with the challenges ahead of the country. The government has to stop importation of rice in early 2015. Then naira was devalued from #156 naira to #186 naira per dollar.
After 2015 general election in Nigeria, Nigeria government moved a policy through Central bank of Nigeria to restrict Foreign Exchange (FOREX) for importation. The domiciliary accounts in Nigerian banks were temporarily suspended and Forex was under control. Nigerians depend on importation, it was so hard to live this time. Most importers has to source for Forex to pay their suppliers. Import duties for most goods were raised by Nigerian Customs Service. This event was not properly monitor by Federal Government in order stabilize the Nigeria currency.
The fall of naira affected the prices of goods in market both locally manufactured or imported. The rate of inflation rose to like 100% which make it difficult for Nigerians to meet basic necessities. Many Businesses cannot avoid to produce and many businesses were folded up. The rate of unemployment keep raising alarm because many organizations can not avoid to accommodate salary payment of staff.
7 ways to resolve current Nigeria Economic recession and financial crises
- Minimizing the imported goods in Nigeria
Nearly everything use in Nigeria is imported. From household materials, office equipment, Building materials, clothing and wears, raw materials for production and so on. The Federal government must not only minimize importation but must inform the citizens the benefit of it to the growth of the Nigeria economy. It will assist in Foreign reserve revenue growth and strengthen the naira against any foreign currencies like dollars, Pound Sterling and Euro with other foreign currencies.
2. Government encouragement of Goods exportation out Nigeria
This is one of the major factors that will help the Nigerian foreign reserve. Many people want to go into exportation but the process of exportation is the issues for most potential exporters. Credit facilities must be put in place by Central Bank and Nigeria Export Promotion Council to assist in goods procurement and logistics. Registration of business by Corporate Affairs Commission
3. Agricultural Exploits for food security
4. Small Scale business Financial and Technical support.
5. Manufacturing sector Development
6. Human capacity Development
7. Information and Communication Technology integration in all sectors