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THE IMPACT OF ECONOMIC RECESSION ON THE NIGERIAN POPULACE.

Format: MS WORD  |  Chapter: 1-5  |  Pages: 65  |  1042 Users found this project useful  |  Price NGN5,000

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THE IMPACT OF ECONOMIC RECESSION ON THE NIGERIAN POPULATION. A CASE STUDY OF EDO STATE

 

 

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND TO THE STUDY

Nigeria as a nation started enjoying economic buoyant before and after independence despite the fact that her economy was a primitive one. Oyewole (2016) noted that Nigeria economy is a primitive one which its fundamental production tools remain among others hoe, axe and cutlass, and production depended on energy stored in muscles. Not long to the independence oil was discovered and continues booming till 1970s. As a result of this, the agriculture which had been the mainstay of Nigeria economy was abandoned due to the discovery of crude oil in large quantity. It is obvious that every Nigerian has now realized the dangers of an economy that is largely based on oil revenue which its price is dwindling in the global market. The dependence coupled with the huge cost of running and maintaining our political structure was always a recipe for disaster. Consequent upon this, Nigerians have finally been confronted with the stark reality that the economy is in recession. The effects of this economic downturn are already being felt by all and sundries in the form of unpaid salaries, inability to pay rent, inability to pay children school fees and even inability to feed. The word recession according to Wikipedia in Afe (2016), is a state of negative economic growth for two consecutive quarters. It is also a business cycle contraction which results in a general slowdown in economic activity. Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble. NDE (2004) affirmed that the emergence of global economic recession in 1980s has led to the galloping state of Nigeria economy. Conversely, Oyewole (2016) observed that about 57 percent of Nigeria citizens are living below $1 per day and live very poorly in all development indices. The factor behind this is over population. National Directorate of Employment NDE (2010) said Nigeria has a

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