Nigeria Over-Reliance On Oil Caused Another Recession- Social Action

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A non-governmental organization, Social Action, says that the reason for another recession is Nigeria’s over-reliance on oil.

Lillian Akhigbe, a Communications Manager, on Thursday, stated that governments at all tiers neglected Small and Medium-scale Enterprises (SMEs).

She said, “After the National Bureau of Statistics (NBS) released the Q3 2020 Gross Domestic Product (GDP) figures, Minister of Finance, Zainab Ahmed, predicted that Nigeria will be out of the slump in a few months.

“While the economy entered into recession in the third quarter, the trend of the growth suggests that this will be a short-lived recession and indeed by the fourth or, at worst, the first quarter of 2021, the country will exit recession.”

But Social Action observed that her optimism of a quick departure from the economic quagmire was not premised on steps being taken by the government to cause a significant turn-around.

She stated that the current recession is the second under President Muhammadu Buhari administration,

She continued, “The economic growth rate in recent years has been alarmingly low and too insignificant to translate into positive improvements in the living conditions of the citizens. Between 2015 and 2020, Nigeria’s GDP growth rate oscillated at an average of 2.5%, compared to previous years – 2012, 2013 and 2014 – which saw the GDP growth rate exceeding 5% average.”

“The government cannot continue to play the ostrich amidst the growing hunger in a country witnessing a high inflation rate of 14.23% as of October, 2020. The combination of an economic recession and increase in food prices, is a recipé for an unprecedented level of hunger and suffering which will negatively impact the living standard of the majority of Nigerian citizens”, it read.

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Akhigbe urged the government to take drastic steps towards addressing the current stagflation, in order to salvage the economy.

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