As we indicated last time, the recent economic recession in Nigeria was the first since 1991 when the economy dropped about 0.6 percent, and continued to average well under 2 percent through 1999. So what happens now? The government needs to tell the people as President Muhammadu Buhari has already stated, that there is still more work to be done by everyone. As the president has said, the results we want would not have come until households begin to see rising income and lower prices. Many households would have to see significant recovery in income in order to recover their self-worth, health, and well-being that may have been compromised from the recession. As we all know, reduced incomes lead to lower levels of spending and therefore of happiness for many households. With higher than normal prices, households face what economists call stagflation. Stagnation is a condition of household misery. It reflects the combined effect of inflation and unemployment. And this can be devastating to vulnerable households. This is why during recessions, households make drastic changes to their pre-recession lifestyles. Unfortunately, adjustments in this regard may have caused many families great pain, especially in explaining the situation to children who may not easily understand the financial implications affecting the family. And so in the hope and anticipation of quick relief households often believe that an announcement that the recession has ended brings also an end to the pain and misery that they have been going through. Unfortunately this is not so. The end of the recession needs to be followed by significant economic recovery and expansion for households to be able to begin to feel good again. Fortunately, this can happen if as we also said last time, all hands remain on deck and the government stays committed and with leadership. I am Magnus Kpakol and that's my view.
Posted: Sep 19th, 2017 @ 03:49:30 AM