Figures released by the National Bureau of Statistics (NBS) on Wednesday, August 31, showed that Nigeria had officially gone into recession. The NBS figures showed that in the Gross Domestic Product (GDP) for the second quarter of 2016, Nigeria’s economy contracted by 2.06 percent. Nigeria’s finance minister, Kemi Adeosun has been subjected to intense criticism since the recession started
The country’s economy shrank by 0.36 percent to hit its lowest point in 25 years. The second quarter report makes Nigeria’s economy the worst in three decades. Recently, four major blue-chip Nigerian companies lost as much as N51.86 billion in the first half of 2016 as the economy continues to take a dip. Nestlé Nigeria Plc, Nigerian Breweries Plc, Dangote Cement Plc and Lafarge Africa all suffered combined profit losses to the tune of N51.86 billion in the first half of the year. Already, most money deposit banks and insurance firms have slashed their workers’ salaries by between 20 and 50 per cent. Investment advisers, Proshare, lists 5 safety measures Nigerians can employ to cope with the recession.
1. Cut down spending on fashion, vacations, luxury things, parties and social spending, clubbing and luxuries
2. Don’t take unnecessary financial risks and be conservative with your spending
3. Don’t be a loan guarantor for anybody during recession- if the person fails to make payment as a result of job loss, you may be asked to make the payment
4. Focus on paying-down existing loans faster; don’t add additional loans like car loans/facilities
5. Pay bills in advance if possible in order to mitigate the impact of inflation.
Meanwhile, renowned economist and businessman, Mr Atedo Peterside has predicted that the recession currently experienced in Nigeria will last for a long time. Peterside who is also the President & Founder of Anap Foundation said business confidence is low and investors are holding back on investing in Nigeria.