THE NIGERIAN ECONOMIC CRISIS AND THE SUFFERING OF CITIZENS.

.

BY

ABONYI HYGINUS EBUKA. 

(hyginussixtus@gmail.com)

+2348133312797

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1.0.INTRODUCTION:

The well-live of any nation, country, society, depend on her economic success. Without a proper cause of action, it will become even more difficult to achieve success in pursuit of goals. This pursuit of goals requires a standard of value by which all actions can be evaluated. Primarily, this standard is human life; the propagation and regeneration of human life and the happiness that makes life livable. In any country, one of the places which is the vital place they get what she uses to sustain life is in her economy. Where it is not progressing in her economy, it results to the massive suffering of the masses (citizens). It pains most because the political leaders may not smell the suffering caused by economic setback but the poor masses. This justifies an Igbo adage, ‘when another person’s dead child is carried, it looks like bunch of fire wood is carried’, and because the situation is not affecting them, they do little or nothing about the situation.

2.0.PRE-2016 ECONOMIC CONDITION OF NIGERIA.

Nigeria is a middle-income, mixed economy and emerging market with expanding manufacturing, financial, service, communication, technology and entertainment sector. It is ranked as the 30^th- largest economy in the world in terms of normal GDP, and the 23^rd-largest in terms of Purchasing Power Parity (PPP). It is the largest economy in Africa; its re-emergent manufacturing sector becomes the largest on the continent in 2013, and it produces a large proportion of goods and services for the West Africa subcontinents (Manufacturing Sector Report 2015: Manufacturing in Africa).

Nigeria is a country blessed with rich mineral resources which it exports and sale in the world market. However, since 1956, Nigeria prospered in its economy with the discovering of oil which provided for 95 per cent of Nigeria’s foreign exchange earnings and 80 per cent of its budgetary revenue. Between 2006 and 2016, Nigeria’s GDP grew at an average rate of 5.7 per cent per year, as volatile oil prices drove growth to a height of 8 per cent  in 2006 and a low of -1.5 per cent in 2016 (The World Bank 2017). In addition, rebels in the southern oil region have forced crude production cutbacks, and internal unrest, especially attacks by the Boko Haram group in the north and the activities of Niger-Delta militant have also hurt the economy. In the previous years, Nigeria’s economy has performed much better in recent years than it did during late 1970s or mid-1980s, oil price continue to dominate the country’s growth pattern.

3.0.NIGERIA 2016 TILL DATE ECONOMIC CRISIS AND ITS EFFECT.

Since 2016, Nigeria’s economy experiences a sudden crises; its economy faces challenges which is regarded as “Economic Crisis”. An economy facing an economic crisis will mostly likely experience a falling Gross Domestic Product (GDP), a drying up of liquidity and rising/falling prices due to inflation/deflation. An economic crisis can take the form of a recession or a depression also called ‘Real Economic Crisis (Online Business Dictionary). In 2016, Nigeria’s economy contracted by 1.5 per cent, which compares to growth of 2.8 per cent the previous year. In three months to the end of December the same year it shrank by 1.3 per cent year on year till date.

These economic crisis led to high inflation rate; Nigeria have been experiencing high inflation rate due to scarcity of foreign exchange, a weak Naira, high interest rates, poor electricity supply, dependence on importation, high cost of doing business in Nigeria and the worst which is the inability of some Nigerians to feed three(3) square meal per day. Unemployment has increased because of the decreased sales of goods and services by those who own business and companies, a reduction in the workforce take place, leading to loss of jobs.

As life gets hard for the citizens, crime rate increase where the citizens do petty stealing, robberies, kidnapping, financial crimes and fraudulent schemes. Parents are not able to train their children in school because of the increase in school fees which they cannot afford the money to pay. This also results to high level of illiteracy in the country. It is quite difficult to keep up with the rising cost of living when your paycheck is not growing at a similar rate.

The economic crisis has ensured the life of the average Nigerian is becoming more difficult by the day. According to Linda who is a student of University of Nigeria Nsukka, studying Psychology, economic crisis has caused a lot of depression and emotional trauma. Majority of Nigerians are suffering from depression and as such, are now finding it hard to go on with their daily lives. In a bid to make ends meet, many stay on the hustle and are forced to manage all kinds of stress, from physical to emotional. This has led to an increase in death rate and decrease in fertility rate in the country.

However, the need for restructuring Nigeria has been the clamour of the Nigerian political world today; economic sector should not be left out in order to devolve and deploy the menace of this economic crisis which affects the citizens to the highest degree. The presidency as well as the National Assembly (Senators and members of the HOR) should be seen to be making sacrifices by reducing their humongous allowance and emoluments, alleged to be one of the highest in the world, not just sermonizing on whether or not Government should sell National Assets in the floor of the House (Tony Ishiekwene 2016).

4.0.CONCLUSION.

Nevertheless, the economy of the country should be diversified and not to base only on one income yielding resources (oil or agriculture) so that when the other decreases in prize level in the world market, the country can survive with other resources. The manufacturing/mining sector should be improved and agricultural output should be raise. The Nigerian government should go back to the philosophy and underlying principles of the 2016 budget. It needs to put policies in place to encourage import substitution and export promotion.

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