Officially in a Recession
Economist: My brilliant citizen, how are you doing?
Brilliant Citizen: My Economist, I am doing good, but things are still quite tough!
Economist: That is relatable as Nigeria is now officially in a recession.
Brilliant Citizen: Recession? Which one is that? You have come again, last time it was remittance, now recession!
Economist: My Brilliant Citizen, don’t worry I will explain:
Recession is the continuous decline in the economic activities/ output of a country for 2 quarters. It is usually signified by decline in production and high unemployment.
Brilliant Citizen: If that is recession, we have been in it for a long time!
Economist: Well, we are officially in it now according to the data:
Chart of Economic Growth in Quarters
Brilliant Citizen: So, what officially caused the recession?
Economist: As expected COVID19 and the drastic drop in oil prices.
Brilliant Citizen: Interesting that we now blame everything on COVID19. Is this the first recession we are having? At least it is the first pandemic in many years.
Economist: You are right, it is not the first recession. We had one in 2016 caused by the drastic drop in oil prices. The country was out of it by mid — year 2017.
Brilliant Citizen: “Ok oo”, so do you expect we will come out of it soon?
Economist: Some have predicted 1st quarter of 2021. Others have predicted we will come out 2nd or 3rd quarter of 2021. Don’t forget these are predictions.
Brilliant Citizen: So, what should the common man be doing during the recession?
Economist: He needs to spend on only the necessities. Especially with Christmas around the corner, many tend to overspend.
Brilliant Citizen: “Ahhaaa” yes , we are spending on only the necessities o. In fact, the necessities are already expensive. “Wahala for who overspend this Christmas season”.
Economist: Next time, we will discuss on the increase in prices, it is called inflation.
Brilliant Citizen: OK next time, it is a very big problem now.
Special thanks to Wale Olusi for his contribution to this article.
1. Mrs. Zainab Ahmed The Minister for Finance, Budget and National Planning https://nairametrics.com/2020/11/23/nigeria-to-exit-recession-by-first-quarter-of-2021/
Chart of Economic Growth in quarters