A Case for Political and Economic Restructuring of Nigeria
- A trajectory of available statistics suggests that the Nigerian economy may be heading towards a recession. For emphasis, the National Bureau of Statistics (NBS), through its quarterly report on the economy, has revealed that the Gross Domestic Product (GDP) of Nigeria contracted by -0.36% (negative growth) in the first quarter. Recently, the Central Bank of Nigeria (CBN) reported that economic activities declined faster in June, indicating that the Nigerian economy may have entered into recession in the second quarter of 2016 (official data for second quarter performance will provide formal confirmation). The IMF has forecasted that the Nigerian economy would contract by 1.8%, while the Finance Minister, Mrs Kemi Adeosun, has also confirmed the imminence of a technical recession. In theory, economic recession is a period of temporary or general decline in productive activities, which is typically measured by fall in GDP in two successive quarters. In reality, Nigeria is on the verge of full blown stagflation, a condition of slow economic growth, high unemployment accompanied by rising prices or inflation.