Nigeria in depression no longer in recession according to Enugu State Chamber of Commerce, Industry, Mines and Agriculture ECCIMA. According to Vanguard, ECCIMA lashed out at the Federal Government, arguing that Nigeria economy has already plunged into depression contrary to the claims of recession making the rounds in government circles.
Remember, last week I made a post on the Causes and solution to Nigeria economic recession. Please, if you have not read the post, go and read it now.
ECCIMA argued further that unless the Federal Government quickly reshuffle its economic team that is if it ever had any, people’s means of survival may be greatly diminished.
It also regretted the prevailing situation whereby families can no longer afford one square meal a day, adding that it is a clear pointer that the economy is depressed. Nothing that south-east geopolitical zone is the worst hit, occasioned by the abysmal infrastructure in the region which has crippled trade and commerce that forms the bedrock of the regions’ economy.
He maintained that the federal government lack the ability to change the economic situation presently ravaging the country. The federal government economic team does not have a solution to mitigate the recession. He said that there are a good number of Nigerians who can proffer solution to the prevailing problems.
Nigerians no longer care for wellbeing but Survival
According to him, “Most Nigerians now are talking of survival not even investing in the productive sector especially in the Small Medium Enterprises, SMEs. People are talking of how to feed. Nobody is talking of investment because the cash flow is not there.
The purchasing power has not risen while inflation has ripped off all savings you have made. People are eating their savings now because income is stagnant.
Majority of the economic indicators; life expectancy, per capital income and many others are showing red. That is why we have gone into depression. People are suffering badly. Most families now cannot afford one square meal a day.
There is nothing that is happening at the economy. The 2016 budget has witnessed a poor implementation and the year has elapsed. Government needs to spend on critical infrastructure and on recurrent expenditure so that consumption power of the people will improve. For now, everything is stagnant and nothing is moving.
On the issue of depression in the south-east geopolitical zone, he maintained that people are just suffering unnecessary. The cost of living in the south-east region has soared to an all time high, from food stuff to transportation among other variables.
The economy of the south-east for now is bedrocked on trade. If you go to our ports now, I’m sure you have heard that most shipping companies are closing shops. Majority of Nigerians who import goods come from southeast. So, south-east economy has been grounded as a result. It is noticeable when you go to the markets.
South-east economy which is dependent on commercial activities, trade is at a standstill. You won’t talk of the productive sector or industry because the cost of importing raw materials is now unbearable.
You may be wondering why am sharing this on my blog. Recall the post I made on the causes and solution of economic recession in Nigeria, I shared some notable keys problems in Nigeria causing the recession.
Now, ECCIMA argued that the country is already in a stae of depression no longer recession. Though, he was not quick to identify his reason for stating that the economy has plunged into depression.
Depression is a state where there is economic downturn lasting more than three quarters. In order words, a state of negative real GDP growth for close to a year. The country currently is on the third quarters of economics downturn.
The implication is that if the government fail to swallow his pride and call for help or better still reshuffling his economic team the economy might actually land its self in the state of depression. The last report of U-report a United nation data NGO, over 70% of Nigeria said they need job.
Are you surprised? We have witnessed massive layout in the country more than any time in the history of Nigeria. Many businesses have been shut down because of a high cost of doing business and low return on investment.
People no longer have interest in investing in the country, foreign direct investment is gradually dying off. Tax rate ought to be declining but in this case, the tax rate is increasing. I will be sharing with you soon the greatest lesson that Nigeria must learn from the great depression before it is too late. Stay in touch and never miss that powerful post.
Kindly share this post with others and drop your view to help us improve on what we share here.