Why Nigeria Is In Recession And The Way Out

I asked a banker friend recently why is Nigeria in recession? His responses will shock you! At first, he was amazed I could ask such a question. The truth is that we are all CULPABLE and no one is a SAINT. If Nigeria must come out the recession on time; all hands must be on the desk.

Although, there is no sign that Nigeria is coming out of recession anytime soon. I am sorry, if I may be sounding unpatriotic but that is just the truth. Rather than eschewing the fact; why not face the reality once and for all?

Lots of things are not just right in Nigeria and no section if FREE. Just of recent, Nigeria customs intercepted 661 pump actions! If I may ask; are the guns used for planting plantain or exporting Bitter kola

I want us to take some time to look into Nigeria economic history and we will understand that the fall of the Naira did not just happen overnight When Naira was stronger was when we had:

  1. Peugeot Automobile Nigeria.
  2. Volkswagen Nigeria.
  3. Dunlop Nigeria LTD
  4. Michellin, Nigeria
  5. BATA
  7. Nigerian Airways.
  8. Steel Rolling Mill, Osogbo.
  9. Steel Rolling Mill, Ajaokuta
  10.  Arewa Textile Mill.
  11. BEREC Battery.
  12. ANAMCO
  13.  General Motors
  14. Kingsway.
  15. A.G. Leventis
  16. Bhojson’s
  17. IBM
  18. IICC.

All the companies left Nigeria one after the other to other countries, while others died here in Nigeria. There is practically nothing on ground in Nigeria to attract the dollar. Even Nigeria brands are sponsoring foreign clubs.

Although, Nigeria is the 5th largest consumer of Japanese products in the world, but Nigeria do not have an Assembly Plant for Toyota neither do we have assembly plants for Mercedes Benz, Hyundai, Honda, etc.

Despite the fast growth of broadcasting & ICT in Nigeria, we do not have assembly plants for any of the producers of all electronic appliances such as Samsung, Sony, Nokia, HP, Techno, etc.

Major software development contracts are warehoused from offshore. Corporate Executives & politicians give more preference to foreign training, foreign medical services, foreign food items & foreign dresses.

With the growth in aviation, aircraft maintenance is done offshore. Most fishing companies have been taken over by the Indian and you want Naira to be STRONGER?

The truth is that so many people are still going to lose their jobs if nothing is done urgently to salvage the country out of recession.

Why Is Nigeria In Recession?

There are so many reasons why Nigeria is in recession but I will narrow it to two reasons:

1.Poor Infrastructure

The infrastructure on ground doesn’t support the production and manufacture of goods in Nigeria. Bad transportation networks and facilities, inadequate power supply coupled with an unfavorable climate to run businesses make it hard for goods to be produced in Nigeria. As a result, Nigerians turn to other countries to get pieces of stuff that aren’t easily available in the country. This includes products like rice, toothpick, turkey and other goods that can be produced locally.

2. Nigerian is An Importation Country

It goes without saying that a lot of Nigerians prefer imported goods to those made locally. We prefer to buy things made in foreign lands, which can easily be produced locally. It’s generally assumed that made-in-Nigeria goods are fake and of substandard quality.

The unfortunate thing is that Nigerians will still prefer imported goods even when the product imported is FAKE compare to locally made goods. This to a large extent has killed production in Nigeria.

There is just one way to this; Nigerians must begin to patronize locally made products and export some of them in exchange for dollars. That is just the way forward if NAIRA must grow!

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