Opinion
Are We In A Recessed Or Depressed Economy?
From the economic stand point, recession is a downward movement of growth and reduction in business activities due to general slowdown of market forces. Unemployment, less industrial activity in terms of trade and business are clear characteristics of a recessed economy.
Economic experts all over the world are of the opinion that recession lasts for a given period; from two months up to one year.
Meanwhile, a perennial recessed economy leads to depression, which is a worst and more worrisome state of economic crises. Depression is a period of prolonged economic downturn arising from unending and extreme case of recession. Simply put, the inability of the system to manage recession gravitates to depression.
This is why depression is a compound and complex economic situation often associated with unprecedented decline in people’s income, failure in business activity and high unemployment rate. A depressed economy is prone to several unthinkable painful events.
For instance, it is only in a depressed economy that an employer sees reward for its workers as abomination. The employer-employee relationship turns sour and this ultimately affects production. The economic hardship and uncontrolled inflation in Nigeria today has so impacted negatively on employer-employee relationship. This disconnect, of course, with its multiplier effects, continuously breeds attitudinal change, low morale, low productivity, as it is being witnessed in the civil service today. Or what do you say of a worker who has not enjoyed his promotion arrears for almost two years?
Situating these indices from May 2015 when President Muhammadu Buhari was sworn-in till date, will attest to the fact that Nigerian economic challenges had crisscrossed through recession to depression. The President himself created a big room for recession to fester by refusing to constitute his cabinet for almost seven months on the excuse that he was looking for the best brains for his cabinet.
Within that period, Nigeria was like a ship without a rudder, as government activities in ministries, department, agencies witnessed a lull. Summarily, the delay in appointing ministers to run the affairs of ministries contributed to the untold economic nightmare we are experiencing today.
When President Buhari finally assembled his team of ministers in November 2015 recession had already reared its ugly head. Worst, after the new ministers resumed duties, rather than moving swiftly to the business of economic recovery, they were engaging in a blame game, pointing accusing finger at former President Goodluck Jonathan’s administration. They did not cease to act as if they were still in the opposition, thereby failed to proffer both short and long term solutions to the ailing economy.
This blame game they embarked on lasted till 2016 and even up to 2017. Unknowingly, this further plunged the recessed economy into depression.
It is sad that the government till this moment has refused to acknowledge that we are in a depressed economy. The manifestation of this socio-economic malady in the people’s lives and health is better imagined.
If President Buhari could feel the shock of a depressed economy as it is manifesting on his health in spite of all the attendant luxury in Aso Rock, what becomes of the fate of common Nigerians on the streets? If the government cannot accept or own up its mistakes from the very beginning, how will it agree that we are in a depressed economy?
Although there is no consensus on how to fix economic depression, policy makers must, nevertheless, apply enough openness by cultivating an investment climate that is good and safe to invest. The present circumstance where all government policies and programmes are politicized has not encouraged healthy competition among investors.
It is obvious that virtually all the solutions thrown at the economic depression by the Federal Government, including the bailout funds to some states, the fight against corruption, disbursement of Paris Club refund and approval of modular refineries, among others, have not yielded the desired results. The palliatives have produced little or no results.
To cure economic depression therefore, means that we must embark on grassroot and middle class oriented projects that will raise the standard of living of ordinary Nigerians.
Meanwhile, our financial institutions, particularly the Central Bank of Nigeria, in a depressed economy like ours, must ensure that the unit of account in many contracts money is managed optimally. This is key because if the value of exchange is over expanded, the result will be value fall.
Lilybox is a Port Harcourt-based journalist.
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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